Agency Fee's

May 17, 2011

  1. robb01
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    robb01 Super Genius

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    Just wondering how many independent agents are charging service fees? Looked into with my state, and its fine if we charge fees, just have to have the client sign a form stating they acknowledge the fee. From what I gather it doesn't seem to be used a lot around here, but more so in larger cities? Just curious as to how you approch agency fees in your office.
     
    Last edited: Jun 10, 2011
    robb01, May 17, 2011
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  2. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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    fee's for what........
     
  3. jhuang
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    jhuang Guru

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    I would think depending on your state. In California, if you are going to charge a "fee", (aka Broker Fee) to write policies, then you need to disclose this to the client and have them complete a standard disclosure fee form provided by the state. In Life insurance, you are an agent and I believe you cannot charge any fees.
     
    jhuang, May 17, 2011
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  4. robb01
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    robb01 Super Genius

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    These fees would be for initially starting the policy as well as any service work done on the policy (reinstatements, changes, etc.)
     
    Last edited: Jun 10, 2011
    robb01, May 17, 2011
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  5. GreenSky
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    GreenSky Guru

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    If my agent charged a fee AND received a commission, I'd find a new agent immediately.

    There is a difference betweeen being a professional and being a pig.

    Rick
     
    GreenSky, May 17, 2011
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  6. Guest
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    Guest Guest

    In AZ, if i recall right, we can only charge an agency fee on E&S business....
     
    Guest, May 17, 2011
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  7. robb01
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    robb01 Super Genius

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    In this state we are allowed to recieve commission as well as charge a service fee; as long as the customer signs the disclosure, why would it matter what we charge?
     
    robb01, May 17, 2011
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  8. GreenSky
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    GreenSky Guru

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    So, let's see....

    You get commission, but charge me a $100 fee in addition to the premium.

    Another agent, same premium but no fee.

    Why would I pay you $100 for the same policy and likely the same service I can get elsewhere?

    That's why.

    Rick
     
    GreenSky, May 17, 2011
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  9. Guest
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    Guest Guest

    Good point... but I think it depends on what the commission is.

    I don't see any problem with both fees and commissions. I know that brokerage houses get a yearly fee for your IRA and they earn comp on what the IRA is invested in as well as an AUM payment.

    Banks charge fees for checking accounts while making money on whatever they lend your fund out on (cars, homes, etc.)

    Some life companies will pay comp on a yearly policy fee in addition to any other comp they pay on trails (renewals.)

    Personally, I'd rather have the 'freedom" to set and receive a fee INSTEAD of a getting a commission for selling insurance... but I don't think that is legal in any state on the health, life, DI side. (Am I right or wrong?)

    YMMV.
     
    Guest, May 17, 2011
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  10. robb01
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    robb01 Super Genius

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    And that is totally thier option, a lot of the business we would charge fees on is non standard auto, they cancel often. It's almost not worth the time to do it, but it would be if a service fee were charged.
     
    robb01, May 17, 2011
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