- 784
Your local Big I can also help with your state specific answers. In my state, as long as do business with a licensed surplus lines bokerage, good to go. no special license required. Just find and contrct with a good broker.
Indedependent Agency Fees! ???
- Thread starter AdvisorsIns
- Start date
Your local Big I can also help with your state specific answers. In my state, as long as do business with a licensed surplus lines bokerage, good to go. no special license required. Just find and contrct with a good broker.
- Thread starter
- #22
- 274
I looked up the fees I'm able to charge in the state if SC. They are very minimal and highly regulated. You have to send the DOI a statement telling them you are going to charge fees. If you deviate you have to get authorization. You can't charge for anything the carrier already charges. http://www.doi.sc.gov/DocumentCenter/View/2928
10$ late fee 10$ reinstatement fee. 3$ convenience fee. 10$ Installment payment fee. I know there are agencies in my state charging outrageous fees that are not legal.
10$ late fee 10$ reinstatement fee. 3$ convenience fee. 10$ Installment payment fee. I know there are agencies in my state charging outrageous fees that are not legal.
I love the guys who say they wish their competition would charge fees. In Texas the majority of non-standard auto agents charge fees. Everytime I tell a captive agent how much money we make off fees he cringes. It's a very lucrative business model. We'll just keep doing it and laugh at those who don't.
CollinAlexander
Expert
- 24
Rlb, where are you located?
- Thread starter
- #25
- 274
Are you not concerned about state regulation or are other states that much more liberal?
Soundadvisor
Expert
- 38
Instead of charging a client an additional fee for one thing or another, don’t you think it makes more sense to look at a client as an entity and not a single policy?
Most individual family units have home or renters’ insurance, auto insurance, some form of health insurance and most likely life insurance and possibly a number of other policies. They need someone to help them structure all their coverage so it makes some sense and effectively utilizes limited resources.
Commercial clients are more needy; they have personal and business exposures. They don’t need a number of different agents adding fees to the premium.
Granted there are certain clients who may not deserve consideration but that should be the exception not the rule.
I do insurance consulting; for a fee- I accept no commissions, referral fees or gratuities. Some agents or brokers work on thin commissions on some lines of business, but overall you have to admit if agents are receiving 10-15% of every dollar a client pays for insurance coverage, that seems to be fair compensation to me.
It would be the rare exception, I would approve paying a fee to an agent or broker to place or service a policy. And if I discovered that to be the case, I doubt that client would remain a client of that agent for long.
Most individual family units have home or renters’ insurance, auto insurance, some form of health insurance and most likely life insurance and possibly a number of other policies. They need someone to help them structure all their coverage so it makes some sense and effectively utilizes limited resources.
Commercial clients are more needy; they have personal and business exposures. They don’t need a number of different agents adding fees to the premium.
Granted there are certain clients who may not deserve consideration but that should be the exception not the rule.
I do insurance consulting; for a fee- I accept no commissions, referral fees or gratuities. Some agents or brokers work on thin commissions on some lines of business, but overall you have to admit if agents are receiving 10-15% of every dollar a client pays for insurance coverage, that seems to be fair compensation to me.
It would be the rare exception, I would approve paying a fee to an agent or broker to place or service a policy. And if I discovered that to be the case, I doubt that client would remain a client of that agent for long.
- 15,041
That sounds great, until you realize who they are charging fees to.
It sounds like by and large, they are charging fees to the kind of guy that goes and gets insurance just so he can get his license, renew his tags, etc. And then promptly drops it and hopes the company doesn't tell the state. That or the person who has no idea how to balance bills and is constantly late and often has to reinstate lapsed coverage.
That person isn't a client, they are a transaction.
- Thread starter
- #28
- 274
That is exactly the situation I find myself in. I have attempted to rid my business was of these clients but end up with them every day. Especially the contractors. Ugh. I totally agree with the prior comment about charging fees being ridiculous just round the accounts. But these are not the accounts you want to round. They will never be better than an octogon.
- 15,041
To them, charge away. They have been in every agency in town and they either were given similar rates and charges or shown the door.
At one point I worked with a P&C agency that did a lot of commercial. There were certain accounts they wouldn't quote and some they wouldn't reinstate if there was a lapse. They were more trouble than they were worth. I don't believe they charged any fees, unless it was E&S and necessary. So they were not going to put up with troublesome accounts. Of course, the agency owner had been at it for decades and had some huge accounts so he could afford to be picky with new accounts.
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