Two General New Agency Questions

[AnonymusInsuran]

Good morning, Fellow Insurance Professionals,

I have two new questions that I was wondering if anyone can answer or at least guide me to the right forum or direction. I already tried contacting several Insurance Attorney's in California and were unable to provide an answer or even willing to consult for an hour. I also could not find anything specific in the California Insurance Code, perhaps question 1 would be under consumer law in California? Even my Reigonal Account Manager was not able to provide a solid answer and recommended I find an ATTY. In closing, after my own research I thought I would post here:


1. If as a new Agency/Brokerage can incentivize potential clients for their applications. For example: "I'm confident my insurance markets through my partners can get you a lower price that ill give you $7 or $10.00 just to get your existing application" somewhere along those lines, not exact yet. If I can incentivize, to what limitations?

2. What can I display on my website if I'm not directly appointed with insurance carriers, like going through a wholesale or cluster. Can I display carrier logos for example: "Through my partner/ relationship access your application will be examined through all these carriers." Somewhere along those lines.

Thank you.

 

[Markthebroker]

1. Contact the department of insurance by phone. I believe there are rules on that, depending on the state. Yes I know you will have to wait on hold for like an hour, sorry. Furthermore, whoever you are appointed with likely has rules on that too. If your marketing rep is too much of a dud to find out, go over their head.

2. Again, you need to contact your marketing rep. That is their logo and basically their property. You need their permission, preferably in writing.

 

[CLPLDrew]

Send the DOI an email. I did when I wanted to send out VISA gift cards for referrals (which I still do) and I have confirmation from them in writing.

Technically you need to get the carriers permission before using their logo anywhere. Have I asked to put them on my website? No, but I’m not implying anything out of the ordinary with their logos either.

 

[AnonymusInsuran]

Thank you for the responses.

1. I did try reaching out to the CDI - they responded with "look it up yourself online" Which I attempted but could not find anything using marketing, solicitation, incentives, etc... as keywords.

2. The Marketing Rep / Regional VP advised to contact CDI for both questions but he recommended not to use them but to confirm either way with CDI.

It's one big circle, lol.

 

[VolAgent]

1. Why? Also, while price is important, it isn't as much about price as you think. I'm only surprised you couldn't an attorney to bill you for an opinion. No one else is going to interpret the law for you, too much liability. Even for employees of the Department of Insurance. I would ask other attorneys for an opinion. I'm sure someone is willing to give one for a fee, of course there may be a reason other attorneys are avoiding this.

2. I bet that is hard no. For a definitive answer, call the companies and ask, after all it is their property (trademark, copyright, or other as appropriate). Asking for forgiveness later could bite you on this one. If the companies find out, they may refuse to appoint you when you are in a position to go direct. They may even tell the wholesaler or cluster you are no longer allowed to place business through them. Which may be enough for the wholesaler or cluster to cut you off completely.

 

[DHK]

1. If as a new Agency/Brokerage can incentivize potential clients for their applications. For example: "I'm confident my insurance markets through my partners can get you a lower price that ill give you $7 or $10.00 just to get your existing application" somewhere along those lines, not exact yet. If I can incentivize, to what limitations?

That's called rebating. Ask your various company compliance departments.

I've heard (on these forums) that it's legal to rebate in California. I've never been able to prove it or disprove it. I do remember my L&H licensing class saying that you can't do it.

Using the correct term will at least help you get more direct information, more precise searches, or at least you can search some CE courses about it for California specifically.

 

[BADTROUT]

Hope this helps...

https://www.google.com/url?sa=t&sou...vC0YQFghcMAg&usg=AOvVaw1dcpEjs7WWqDZtyCI493Bt

 

[AnonymusInsuran]

Badtrout, thank you for your link. I will also use other sources to obtain an exact citation to back your link. I even tried avvo and no Attorney's were of help - one even suggested that it may fall under Consumer Protection Laws and not the insurance code.

But again, thank you.

 

[AnonymusInsuran]

To DHK, and Sorry to double post, but "Rebating" involves more with giving back your commission to your customer as a "discount" or using giving back a part of your commission to obtain a referral, not using your own out of pocket money to obtain prospects, market etc...

Thank you all.


Codes: Text Search

 

[DHK]

Try searching on the CA DOI website for "anti-rebating" or "illegal inducements" and you'll find links regarding issues with Title companies. Rebating happens AFTER a sale, while inducements are BEFORE the sale.

I'm not saying that an agent can't do rebating/inducements in California. I only said to check with your company compliance.