3 The parties to this Agreement are ______ (“CUSTOMER”) and ______; California Department of Insurance Lizenz # _____ (“Broker”). 2. CLIENT APPOINTS BROKER AS CLIENT`S INSURANCE BROKER This agreement comes into effect on ______ (date) and will remain in full force and effect until terminated by one of the brokers who agrees to honestly represent the client and the client agrees to pay the broker brokerage fees for the broker`s services. The broker fee is $_____. Brokerage fees are non-refundable (circle one). 6. The broker may charge a fee to the client in the future, and the client agrees to pay additional fees for the services listed below. Additional fees and services are: the amount of the service7. Below you will find the nature and amount of all fees known to the broker, which are collected by persons other than the broker or insurance company, as part of the client`s current insurance investment. These fees are not retained by the broker. Service Amount Client SignatureThe Signature Broker DateFor any questions or concerns regarding brokerage fees or insurance, please contact the Insurance Department at 1-(800) 927-HELP.
Q: Does each producer have to have a brokerage obligation? Or is it enough to build the agency`s loyalty? Q: Are there any specific requirements for the collection of a brokerage tax for commercial lines? A: Brokerage fees levied when executing a commercial policy must be agreed in advance. Given the presumption in section 1623, it is important that a commercial brokerage contract be used. The brokerage fee agreement should be clearly disclosed and signed by both the client and the broker. Full disclosure and transparency in advance will avoid confusion and decrease the likelihood of regulatory or civil action. The broker should never: combine brokerage fees and premium with an acompt; Just mention the brokerage fees and premium in an offer or offer; or simply add a statement such as “The premium involves a fee”. Here too, brokerage fees must be disclosed separately and agreed with the client and proven by a written brokerage fee agreement signed by the client.. . . .