Referall Fees

[Gary AC]

Hi, I`m new to this so bear with me. Is it legal to give a referall fee to another licensed agent who gives you a referral to a Med Supp or Med Advantage client? If so is there a limit on the percentage of commission?

 

[Todd King]

Hi, I`m new to this so bear with me. Is it legal to give a referall fee to another licensed agent who gives you a referral to a Med Supp or Med Advantage client? If so is there a limit on the percentage of commission?

Referral for Med Advantage, I do believe the max is $100. On Med Supps, there are no rules, so you can do what you want other than rebating.

 

[rousemark]

Hi, I`m new to this so bear with me. Is it legal to give a referall fee to another licensed agent who gives you a referral to a Med Supp or Med Advantage client? If so is there a limit on the percentage of commission?

Do not set it up as a percentage of commission or the agent would have to be licensed with the company you place the business with.. Just pay a flat rate. Some states have a limit on what you can pay an unlicensed person..

 

[Gary AC]

Thank you for the replies. They were very helpful.
Do the referall fee checks have to come from me or the carrier?

 

[Todd King]

Thank you for the replies. They were very helpful.
Do the referall fee checks have to come from me or the carrier?

They would come from you. Of course, you would be responsible for the full amount of any chargebacks that may come.

 

[DonP]

Referral for Med Advantage, I do believe the max is $100. On Med Supps, there are no rules, so you can do what you want other than rebating.

I just went threw this with an fmo . I believe the $100 Todd says is correct . But because of the ease a mapd can move I’d never give over $50 .Also you must give a specific 1 use card like a restaurant or gas card . You can’t give a Walmart or Amazon card were many different items are sold . That starts in 2023

 

[Fisher]

Also you must give a specific 1 use card like a restaurant or gas card . You can’t give a Walmart or Amazon card were many different items are sold . That starts in 2023

Incorrect, that does not apply to broker referrals. Re-read and comprehend the question posed by OP.

 

[Gary AC]

I was only talking about referrals that come from licensed Insurance agents. I didn`t think you could give a referral fee to an unlicensed person?

 

[DonP]

Incorrect, that does not apply to broker referrals. Re-read and comprehend the question posed by OP.

Correct . You got to be crazy giving a referral of your client to an agent you don’t trust. It’s up in the air what you can give a straight referral from like a client or a non client . I’ve heard $15 to $100. A non agent it must be a 1 use gift card

 

[rousemark]

Correct . You got to be crazy giving a referral of your client to an agent you don’t trust. It’s up in the air what you can give a straight referral from like a client or a non client . I’ve heard $15 to $100. A non agent it must be a 1 use gift card

You are still not understanding what he is asking.. H e is asking about paying another agent to send him referrals. Not uncommon. I used yo work with several P&C agents that would refer their med sup business to them because they didn't want to write it. I didn't do P&C and would refer P&C clients to them.. Worked out good for both of us. Also p. helped them keep thier P&C because the client did not go elsewhere hunting med