Back Broker fee questions CA

P_McGrath Apr 27, 2010 1:31 PM
At what point do you disclose to your clients that you charge a broker fee, and how much it will be? Is it in your marketing, sign in office, written disclosure at some point, other? Are your broker fees charged on a one time basis, or ongoing (renewals)? If you have a floating scale, what makes it go up or down? What do you do if client balks at this fee?
ffisher Apr 28, 2010 12:28 PM
Broker Fee regulations in California are governed by ins Code Sec,(s) 790.10 790, 790.01, 790.02 and 790.03(b) . Also more specifically, the Calif Code of regulations has an entire section on this at Section 2189.1. These sections may be found at the CDI website. Please Consult with your attorney for more information. Rest assured they MUST be disclosed at all times and certain forms may be required to obtain the Insured's signature. You may NOT charge a Broker Fee if an Insurance Co. has filed an Action Notice with the CDI appointing you as an appointed agent.Feel free call me or email me at or 310-322-1301Fred FisherCEO- ELM Insurance Brokers
donschmahl Apr 28, 2010 3:23 PM
ffisher has it right. I love to find "unannounced" Broker Fee's. This really makes insureds' upset and makes moving the business much easier. The B.F. should be shown on the proposal and on the invoice.
P_McGrath May 19, 2010 5:28 PM
No deception or unannounced fees here. Everything is/will be out in the open. I'm simply looking for others ideas.
Rob Comeau May 20, 2010 12:36 PM
I work with a lot of brokers (I am a self-insured PEO) and I've always advised them that if they are going to charge a broker fee, why not make it 10% of what they will save the client? This way their broker fee is tied into what they need to do well for the client and the client understands that if the broker fee goes up it is because the broker is saving them more money... just a thought. Good luck out there. Rob Comeau Barrett Business Services, Inc.

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