Agent/Broker Compensation

The Heartland Farm Mutual Inc. products are only available through independent insurance agents and brokers. Brokers are independent business people who consider product, service and price so that their clients can make informed decisions about their insurance protection and buy insurance on behalf of their clients.  Our broker agreements are very clear the policyholder shall at all times be and remain the client of the broker. Agents are also independent business people but are contracted exclusively with the company to only sell our products other than some speciality automobile coverage.  Agents consider their customer and potential customer needs for coverage and provide the best available product from our company.

Heartland Farm Mutual Inc. compensates agents and brokers by utilizing two methods. The first, we pay your agent or broker a fixed percentage of the premium you pay (excluding taxes). This is a reimbursement of costs to your broker for servicing the business placed with the Company. This reimbursement percentage will vary depending upon the line of business.


Farm Property 15% to 21%

Property 20% to 22.5%

(Home and Business)

Automobile coverage 10% to 12.5%


The second form of compensation is contingent commissions recognizing the profitability of the business once placed with the Company. Profitability is defined as a ratio of claim costs to premium revenue averaged over a three year period. Contingent commissions are not guaranteed.

As an example, one of Heartland Farm Mutual Inc. predecessor companies for 2014 compensated brokers 2.92 % of direct premiums written as contingent commissions.  Loans and loan guarantees may be made to support brokers in the expansion of their businesses and for succession changes when one broker wishes to acquire the financial interest of a partner or retiring colleague. These types of arrangements are infrequent and the rate of interest charged is similar to what a financial institution might charge.