Back Broker Fee - California

patpat Jul 4, 2019 2:04 PM

Does California broker fee laws also apply to wholesalers/surplus-line-brokers-MGAs when releasing a quote to a retail broker?


fjfisher601 Jul 8, 2019 10:43 AM
Yes- they do- Broker Fees MUST be dislcosed and be sure to check you license status., i.e., if quoting an ADMITTED insurer- be sure to chek and see if that Insurer appointed your firm and /or you as an appointed agent! Then you cannot charge a fee until you get that appointment canceled. Many larger Insurers mistakenly believe that as an admitted Insurer, they must appoint all production firms form whom they accept busines. That is becasue many States require that, but not California. They do it either because they are mistaken, or they just find it easier to just do it autmatically.
Zoom Jul 23, 2019 12:57 PM
Fl retail Policy Looking for any MGAs in Florida that will allow for the retail agent to add a policy fee to the policy.  It is now allowed in Florida.ail Policy Fee
patpat Sep 26, 2019 4:09 PM
California Insurance Code Section 1623  does not adequately address the wholesaler broker fee. We need a cap on the wholeslaer broker fee. We see exorbitant numbers all over place. New laws are needed. Attention Wholesalers: We are watching!  
INTLXS Sep 30, 2019 10:58 AM
patpat, Why would you not go to a different wholesaler or negotiate the fee down?
rbadoux Oct 15, 2019 12:25 PM
Wholesaler fees are usually negotiable. However if they won't budge, there are many wholesalers that will accept your business. Call around, look around, you will find a good fit. Let competition in this marketplace do it's work, passing regulations to restrict wholesaler fees makes wholesalers lose the incentive of doing business at all. 

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