Agency Fee's

[robb01]

Just wondering how many independent agents are charging service fees? Looked into with my state, and its fine if we charge fees, just have to have the client sign a form stating they acknowledge the fee. From what I gather it doesn't seem to be used a lot around here, but more so in larger cities? Just curious as to how you approch agency fees in your office.

 

[STIBROKER]

fee's for what........

 

[jhuang]

I would think depending on your state. In California, if you are going to charge a "fee", (aka Broker Fee) to write policies, then you need to disclose this to the client and have them complete a standard disclosure fee form provided by the state. In Life insurance, you are an agent and I believe you cannot charge any fees.

 

[robb01]

I would think depending on your state. In California, if you are going to charge a "fee", (aka Broker Fee) to write policies, then you need to disclose this to the client and have them complete a standard disclosure fee form provided by the state. In Life insurance, you are an agent and I believe you cannot charge any fees.

These fees would be for initially starting the policy as well as any service work done on the policy (reinstatements, changes, etc.)

 

[GreenSky]

This would only be on the P&C side. I've downloaded the standard disclosure provided by our independent agency association.

These fees would be for initially starting the policy as well as any service work done on the policy (reinstatements, changes, etc.)

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

 

[Guest]

In AZ, if i recall right, we can only charge an agency fee on E&S business....

 

[robb01]

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

In this state we are allowed to recieve commission as well as charge a service fee; as long as the customer signs the disclosure, why would it matter what we charge?

 

[GreenSky]

In this state we are allowed to recieve commission as well as charge a service fee; as long as the customer signs the disclosure, why would it matter what we charge?

So, let's see....

You get commission, but charge me a $100 fee in addition to the premium.

Another agent, same premium but no fee.

Why would I pay you $100 for the same policy and likely the same service I can get elsewhere?

That's why.

Rick

 

[Guest]

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

Good point... but I think it depends on what the commission is.

I don't see any problem with both fees and commissions. I know that brokerage houses get a yearly fee for your IRA and they earn comp on what the IRA is invested in as well as an AUM payment.

Banks charge fees for checking accounts while making money on whatever they lend your fund out on (cars, homes, etc.)

Some life companies will pay comp on a yearly policy fee in addition to any other comp they pay on trails (renewals.)

Personally, I'd rather have the 'freedom" to set and receive a fee INSTEAD of a getting a commission for selling insurance... but I don't think that is legal in any state on the health, life, DI side. (Am I right or wrong?)

YMMV.

 

[robb01]

So, let's see....

You get commission, but charge me a $100 fee in addition to the premium.

Another agent, same premium but no fee.

Why would I pay you $100 for the same policy and likely the same service I can get elsewhere?

That's why.

Rick

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.