Agency Fees, do you charge them?

[Guest]

As I remember it from insurance license school, it is illegal for a CA life agent to charge a customer an add-on fee for brokering a life/health policy. (Anyone know for sure?)

I don't know how that applies to a fee-based financial planner who also has an insurance license (and a NASD license?) Do they simply NOT accept the carrier commission?

Al

 

[K-Dub]

I don't charge a fee for my services, but do have a tip jar out!

 

[WBunch]

As I remember it from insurance license school, it is illegal for a CA life agent to charge a customer an add-on fee for brokering a life/health policy. (Anyone know for sure?)

I don't know how that applies to a fee-based financial planner who also has an insurance license (and a NASD license?) Do they simply NOT accept the carrier commission?

Al

I believe it does not affect the fee-based planners, as the fees are mainly for coming up with the plan and managing their investments. However, in the majority of the states if a producer recieves a commission for investments or insurance on top of the fees charged, then they must disclose that to the client. That is why here in Louisiana I don't charge fees for the planning aspect, only for managing the investment accounts.

 

[chabat124]

What would the fees be for?

I just do P&C.
But they would be for non-standard auto and for Surplus lines commercial. The non-standard carriers even have an agency fee field, you just enter it and it prints with the application. The fees are relatively small.

 

[chabat124]

I think it is pretty common on small p&c policies, to build in a small agency fee. Lets say someone flips cheap houses, and they take out a policy with total premiums of $400 and they will probably cancel within a few months. If you don't charge a fee, then you can lose money, or just make 20 bucks on the policy, so they build in a $50 fee for their work.

Yes, that is what I am speaking of... There must be more health/life agents around here... I am only on the p&c side.

 

[arnguy]

WTF, I haven't heard of life and health agents charging any fees. I am not sure but that might not be legal in PA. Some years ago, I knew a life agent who would send a bill to a prospect to whom he had made a presentation but no sale. He told me his time is worth money. I agree, but I don't know if ever collected or if could even enforce it.

 

[chabat124]

WTF, I haven't heard of life and health agents charging any fees. I am not sure but that might not be legal in PA. Some years ago, I knew a life agent who would send a bill to a prospect to whom he had made a presentation but no sale. He told me his time is worth money. I agree, but I don't know if ever collected or if could even enforce it.

I sell P&C only. It is legal to do this in Texas on the P&C side.

 

[TXINSURANCE]

I charge $20 (refundable) for a quote.


... joking of course... would be nice though...

I sell P&C only. It is legal to do this in Texas on the P&C side.

I bought a Texas liability policy on my office building and there was a $150 policy fee on it - once I questioned it the agent (my friend) took it off and said don't worry about it...

Hmmmm.... Unless I read it wrong since I don't do P&C I wasn't sure what that was all about.