Agents Charging Additional Application Fees?

[azmedsupagent]

Ok so I just got off the phone with new client. He said he talked with and agent at "Medigap 360" who quoted him Philadelphia American and indicated that the application fee is $50 instead of the normal $20 charged by the company. Perhaps he was mistaken or misunderstood the person he talked with...? According to CSG Actuarial the only company that charges an application fee that High in Arizona is Universal Fidelity at $48. Is it possible they are charging an extra Fee?

Obviously unethical if true but is it even legal?

 

[Bevo]

I can only imagine the kid was new and screwed that number up. Not sure of the legalities but I would bet it's not (legal). They would have to get two payments from the client made out to two different entities as companies include their fee in first premium payment as we all know. This would raise red flags all over the place.

I would also think Medigap360 has written enough policies by now that they don't need an extra $30 to make ends meet.

 

[TwiLight]

You will find that a number of P&C agencies will charge fees on top of commission. They usually have to have a disclosure/acknowledgement signed.

Some may do the practice to L/A&H business also under a separate billing. One check to the agency and one to the Insurance Company.

 

[somarco]

I have run into something similar before. Can't say who the agency is. They were charging something on the order of $50 to run a quote.

I ran into this person a few months after they bought ..... MOO plan F. Told them I could save them $X but they were not interested.

"I already spent the money and the agent gave me a spreadsheet showing MOO had the best rates. Don't see any reason in changing now. It would be a waste of my $50."


You just can't fix stupid.