How is Jacqui, an insurance broker, most likely to be compensated for her services?

Insurance brokers, like Jacqui, are typically compensated through commissions which are often calculated as a percentage of the premiums charged for the policies they sell. This commission structure incentivizes brokers to provide clients with policies that best fit their needs while also ensuring they receive due compensation for the services rendered.

Commission based on the premiums charged grants brokers a direct financial interest in the policies they recommend and sell, encouraging them to maintain a high level of service and support. The amount earned can vary depending on the type and amount of insurance coverage, which reflects the broker's effective work in matching clients with appropriate products.

While fixed advice fees and ongoing advice fees are valid forms of payment for certain other financial services, they are less common in the insurance brokerage industry where commission-based compensation is the prevailing model. Commission based on the sum insured could also exist but is not the primary mode of compensation for brokers in practical terms, especially given that policies are more frequently linked to premiums.