Charging Broker Fees in FL, TX, and NY

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Charging Broker Fees in FL, TX, and NY

Post by CALCO » Thu Aug 06, 2009 12:07 pm

Does anyone know if broker fees are allowed in FL, TX, and NY? If yes, is there a limits and circumstances that fees can't be charges?

I look forward on hearing from you soon.


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Re: Charging Broker Fees in FL, TX, and NY

Post by Big Dog » Thu Aug 06, 2009 1:01 pm

The best place to look for this information would be at the respective department of insurance state websites.

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Re: Charging Broker Fees in FL, TX, and NY

Post by mhutch69 » Fri Aug 07, 2009 12:17 pm

Texas producers charge between $40 - $100 on personal auto depending typically upon coverage. I would bet Florida producers would find a way to charge fees.

CA is the champ of broker fees.


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Re: Charging Broker Fees in FL, TX, and NY

Post by tsntyler » Fri Aug 07, 2009 4:00 pm

Since there are NO "retail" brokers in Texas, we call them AGENCY FEES. The law states that we are allowed to charge a reasonable fee - the thought being that there are some things that aren't covered by commission - overnight mailing, postage, extra mail expense, fax costs, printing costs.

Typically you see fees charged in non-standard auto agencies as there is usually a higher "touch factor" involved. The agent has to have a disclosure form signed at point of sale and kept on file. The fee is "market driven" as what might be appropriate in Dallas might not be approriate in Dime Box. I have seen fees run from $40-$100 per application - but keep in mind, the agent "down the street" might NOT be charging fees, so don't get greedy and ruin a good deal for the REST of us. Some agencis charge for EVERYTHING - fax copy, lost ID Cards, endorsements ($10 to add a car, $10 to delete), payment fees for taking payments in the agency ($2-$3.00), and post signs in their offices explaining WHAT the fees are.

If we get letters from attornies wanting information, we reply with a bill for $50 plus copy costs. They don't pay, but, we don't give ANY info to them - and pass along any of their correspondence to the appropriate carrier. Sooner or later - they quit calling.

In Texas, some companies may not allow their agents to charge fees - and any policy written in TAIPA (Texas Automobile Insurance Plan A) or the "assigned risk carrier" CANNOT have a fee charged with issue. I believe it is the same with the FAIR plan for property.

As far as Florida goes, they cannot charge fees, however, they are an "add on" State. Most of them will sell a motoro club or AD&D ppolicy with every application to make up for it. One group that comes to mind in FL is T&R, Inc - 1-800-742-2722 ( and talk to Ron Manera.

Not sure about NY, but you could contact the NYAAA for additional info.

Good luck and I hope this helps!

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Re: Charging Broker Fees in FL, TX, and NY

Post by TheInsKid » Fri Aug 07, 2009 6:14 pm

It would depend upon if you are dealing with surplus lines and/or admitted policies to begin with. The 2nd item would be exactly what you are calling fees and what these fees are for. Please realize that it may all be in the way you disclose and/or charge fees in a particular state. A fee in one state may not be the same in another state even if you call it the same type of fee. In fact, there are a number of states that do not allow you to charge a fee period regardless of what you call it !!

There are fee disclosure rules; there are fees in lieu of commissions’ rules, fee in addition to commission’s rules etc. One rule does not fit every state! You had better be very careful !! The 3 states named in this example, are a nightmare and that is on a good day. Did you know for an example that some states have rules as to how you hold yourself out to the public, as a broker or agent. NY is an example of that, there is a big difference and most agent/brokers/agencies do not know the difference or maybe they choose to ignore the difference. NY has a P&C license for a broker or an agent. You can have both licenses but they are very different in how the state of NY looks at you the insurance professional. The state of NY is in fact the biggest hypocrite of all the states but they would like you and the public to think they are on top of things, NOT !! They are a joke but that is a whole different story.

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