Broker Fees - Various States

[OCinsurance]

I think it would be helpful for agents from different stats to share the rules on broker fees in their states.

Please post
-your state
- is there a maximum fee
- can fees be charged on personal lines
- can fees be charged on commercial lines
- are fees allowed on admitted policies
- any other information to share

This can help many people, including those who may expand to new states.

 

[Guest]

In AZ, we can ONLY add agency fees for E&S markets

 

[Scottyj]

Live in UT. We can only place fees on E&S markets.

No max, NO Min. no uniformity rules either. According to the UT DOI there is no rule against it on the E&S side so you can.

I have heard you can place them on personal but they must be uniform according to recent case law... however after a long discussion with the local DOI I found this to be not true.

Domiciled in Cali, Post a 10k bond, recieve a "Broker" Title/Authority and pretty much attach broker fee on any MGA placed business... admitted carrier or not, either way is fine.


NCPCLHnoob just reminded me both states require broker fee disclosures written, presented and signed before policy is bound and issued. I tell my prospects on the spot if we have to go E&S my compensation drops from 15% to 10% so I must make up the difference to cover my costs. That is what i generally do. However we had a producer in our Cali office charge a $5k broker fee on a client and the client did not bat an eye and wrote the check... granted this producer had just saved the guy like $20k

 

[NCAgent]

NC you can do whatever you want for it as long as you make the client sign something in writing each and every time a fee is charged and give a receipt for it. You also have to have your fees posted very clearly in your agency lobby.

Same goes for E&S.

The fees can be whatever, no maximum, however, you cannot discriminate for it. I can't offer Dan a fee of 50 and RBA 50, but then say OCinsurance smells funny so he gets 75 or that XRAC sold me a killer life policy so he gets 25. You can waive the fee though, so you charge or you don't. I'd just do an annoyance fee and then waive it for the non-annoying people.

 

[OCinsurance]

I'd like to hear from a Florida, Illinois and Kentucky agent on this too. Of course, eevry state is welcome.

 

[NCAgent]

OC, do you have the requirements for SC, VA, and GA? I'm going to be moving the fees into there eventually.

Does 50/package sound reasonable for people closing on a mortgage?

 

[OCinsurance]

In AZ, we can ONLY add agency fees for E&S markets

I called the DOI and they said that only surplus lines brokers can add any fees. Retail agents cannot. I've called many DOIs and almost none will give me an answer.
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By the way, I'm only looking at the fee rules for commercial insurance sales.

 

[BIG RED IS BACK]

I called the DOI and they said that only surplus lines brokers can add any fees. Retail agents cannot. I've called many DOIs and almost none will give me an answer.
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By the way, I'm only looking at the fee rules for commercial insurance sales.

and whats your point in asking all this, are you licensed in all states?

 

[OCinsurance]

and whats your point in asking all this, are you licensed in all states?

Yes, I am licensed in all states but MA. I'm also doing this because I'm finding a lot of information that contradicts other information. I called many DOIs, but they either said that they didn't know or could not help.

Thus, agents helping agents was my plan.

 

[angora]

IL as long as you get a fee disclosure signed sky is the limit for P&C. I asses my fees based on service the account will require. There are lot of accounts we have our $35 minimum fee and other accounts we charge upwords of $1000 agency fee.