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Does anyone know the laws regarding charging a cancellation fee by an agency? If someone cancels a policy mid-term, and the carrier doesn't charge a fee, would it be possible for the agency to charge a 5% or 10% fee for cancelling early?
Charging an Agency Cancellation Fee?
- Thread starter robb01
- Start date
Why would they do this... who is thinking about it... are you the agency thinking about doing this?
- Thread starter
- #3
- 191
Yes, an agency that works with a lot of non standard auto, considering implementing an agency cancellation fee.
G
Guest
Guest
I doubt it is legal, in my state, we can only charge an added fee for E&S policies.
- 4,132
I would say the first place to check is with your OIC. See if you can legally do so before you consider creating a policy that could get you fined or possibly shut down.
- 414
100% agree, why not charge an up front broker fee with the down payment for the non-standard auto if it's legal in your state then don't worry about the cancellations.
- 4,132
The other question would be 'what does your competition do?"
- Thread starter
- #9
- 191
They are already charged a broker fee
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Turn it over to a collections agency
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- 415
You are serious? Do you think that they care... If you are charging a broker fee already why do you feel the need to charge a fee for cancelations?
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