Fees on Admitted Market

[insnewbie1]

Hi,

Does anyone know a good site other than the state website to find information on what fees are allowed on admitted market?

I am trying to find if fees are allowed in an admitted market. If so, is there a limit on the amount that can be charged? For example, risk in Arkansas procured through an admitted carrier, can I charge a service/broker fee?

Thanks.

[mightyquinn]

First, are you a retailer or wholesaler? The fee regulations are pretty standard.

Second, usually -- and this is usually -- a retailer can add a fee to an admitted quote if he discloses it to his insured prior to binding. This is whether he does or does not receive commission and whether or not the retailer has a production agreement with the admitted insurer.

Third, a wholesaler can add a fee to an admitted quote if he discloses it to his retail producer so that he can inform his insured prior to binding. The retailer can blame the big bad wholesaler to his insured, but its the wholesaler's perogative.

Admitted fee regulations are directed at retail producers so that they cannot come back against the insured after binding and then levy a fee for who knows what. If you play it straight you'll be ok.

[tsntyler]

How does your State's law read?

In Texas, we are allowed to charge a "reasonable fee" as long as we have a signed Disclosure Statement signed prior to binding coverage. This fee is something that we acknowledge during the quote process and is NEVER hidden or "slid" into the deal.

Our wording does NOT differentiate between admitted and admitted markets.

Your individual companies my have rules that state NO FEES, but that is contractually between you and the insurance carrier.

Hope this helps!

[JAM]

The regs might be different for personal VS Commercial ins. in your state.

[insnewbie1]

Thank you all very much for your response.