Consultation Charges

[jjinsureme]

I heard of insurance agents charging for insurance and funeral consultations. Is that legal?

 

[djs]

Probably about the same as broker fees. Legal, but on a slippery slope, have to be disclosed, etc, etc.

My guess is most people use it more like advertising, $200 consultation, free with this coupon, type of thing. Makes it sound like a real value, when in fact, sales calls are pretty much always free....

Dan

 

[Tearmann]

I heard of insurance agents charging for insurance and funeral consultations. Is that legal?

Most likely legal but I agree - a slippery slope - taking the position of community service and could you some referrals.

 

[Biggin]

As I understand it, it's absolutely NOT legal. Unless of course, you are a LIC (licensed insurance counselor) registered in your state. At least this was the buzz at a Blue Cross meeting discussing ways to monetize the Obamacare health insurance exchanges.

 

[djs]

Its definitely one of those areas where different states have different rules. Here in CA, there is no such thing as an LIC, at least not that I am aware of.

Also, brokers can charge fees, but due to competitiveness and the rules around it, with the exception of non-admitted, non-standard, and virtually impossible to place risks, few brokers do.

Dan

 

[HealthGuy]

Biggin and others....With the impending exchanges who in the world is going to pay a broker consult fee? Anthem at a meeting really suggested this? Wtf?

 

[Biggin]

Biggin and others....With the impending exchanges who in the world is going to pay a broker consult fee? Anthem at a meeting really suggested this? Wtf?

A company that you currently take care of the group insurance may drop coverage and tell the employees to go to the exchange and MAY pay you to walk their employees through the process. Maybe, possibly, who knows and all like that......Nobody knows exactly what it will look like for sure. And I'm not saying Anthem recommended it or anything (why would they? I agree with that) And I wont say where the "buzz" and subsequent discussion came from.......shhhhhhhhhh.......big brotha' and big motha' are watching.

 

[Hopwood04]

I believe Biggin is correct. You better check with your state insurance department before you do it.