A partner at insurance firm Michelman & Robinson noted the need to categorically declare the amount of broker fees charged to clients during a talk he delivered in La Jolla, California.
The speech was part of a series of lectures at last month’s 2017 California Wholesaler Industry days.
Mark Robinson, a partner at the said firm, emphasized that as much as possible, the broker’s fee has to be accounted for in detail, and where possible, the broker should undertake a broker fee agreement with their clients.
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He added that the fee should be more than just a line item in the contract and doing so “brings you in compliance” with state rules governing the communication and charging of the fee, he added.
“It needs to be set out specifically,” he said in a video of the said event posted on JD Supra Business Advisor.
The website noted that the California Insurance Department has been stricter in overseeing broker fees in the state over the past few months.
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