Agency Fee's

[CaptiveGuy]

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.

I agree, high risk auto and commercial lines p&c usually justify fees. Most agents around here all charge $250 for commercial lines but nothing for personal lines.

Even my non-standard clients are on EFT or pay in full for 6 months so I have yet to charge a fee on personal lines. I'm the guy offering the "same premium but no fee" as Greensky put it.

 

[Bertolinoins]

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

What if your agent had to go trough several different surplus lines brokers to secure the coverage and was being paid 8-10%... then would you care or would you just be happy to get the coverage at the best possible price?

I fee all of my surplus lines accounts up to a 15% commission level. 20% if it is a high touch industry. They are more work and less profitable than standard business but I do it to help the client. The other option is to tell them to take a walk... which is what many agents do. I have no problem with broker fees as long as they are disclosed. The client can always go elsewhere.

 

[GreenSky]

What if your agent had to go trough several different surplus lines brokers to secure the coverage and was being paid 8-10%... then would you care or would you just be happy to get the coverage at the best possible price?

I fee all of my surplus lines accounts up to a 15% commission level. 20% if it is a high touch industry. They are more work and less profitable than standard business but I do it to help the client.

The OP didn't indicate surplus, I answered the question in a general manner. Surplus lines may be a different choice.

Rick

 

[Bertolinoins]

The OP didn't indicate surplus, I answered the question in a general manner. Surplus lines may be a different choice.

Rick

In my state (CA) you cannot charge a broker fee on any companies you are directly appointed with. If you have an agency contract, you cannot charge a broker fee. If you go through a 3rd party then you can.

 

[OCinsurance]

I used to never charge any fees, but there is a cost to doing business. Also, if I have an agent spending hours working on something for a client and we receive a $80 comm, and then have to pay $5 in postage to send the policy ,we barely make a dime. It costs money to cover rent, utilities, e and o, and a staff. I also often hear my clients say how much they appreciate our service.

Fyi, I'm talking about fees on commercial p and c.

Does anyone know a good place to find all of the agency fee and broker fee rules for each state?

 

[MDInsuranceguy]

Does anyone know a good place to find all of the agency fee and broker fee rules for each state?

Also, how does collecting the fee work in terms of payment and how the client pays?

 

[Kiwi2020]

Question, is anyone charging a broker fee to cover administrative costs, merchant fees etc. If so how are you stating that to the insured in the final sale process

 

[InsuranceGuy29]

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

To be honest, I see absolutely zero wrong with this. I can't tell you how many people have absolutely wasted a huge part of my life by me having to research things for them, get them all set up, only for them to say...."Ah, it's too expensive," or "Ah, I found another place," but thanks anyway!"

At the very least, it should be a $100 consulting/research fee, and then it gets kept by the agent if they don't sign up. If they sign up, they get the $100 back. No one is entitled to anyones time. Not being able to charge a fee in my state is actually one of the things I hate about this industry the most. If I wanted to run a charity, I would. I'd have about $5,000 more in bank account for my "free" labor.

 

[Kiwi2020]

I can't agree with you more. Thank you for your reply!