California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 1 - Production of Insurance
Article 6.8 - Broker Fees
Section 2189.3 - Broker Fee Requirements
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
A broker-agent acting in the capacity of a broker may charge a broker fee, provided that:
(a) The consumer agrees to the fee in advance of the agreement required by subdivision 2189.3(e), after full disclosure of all material facts surrounding the fee, including if true the fact that an insurer may pay to the broker a commission in addition to the broker fee.
(b) The fee is not being charged directly or indirectly for services related to procuring coverage from the California Automobile Assigned Risk Plan or the California FAIR Plan, and is not prohibited by statute or regulation.
(c) The broker is not an appointed agent of the insurer with which the coverage is or will be placed.
(d) The broker provides the consumer with the Standard Broker Fee Disclosure set forth as Appendix A to this Article.
(e) The consumer and broker sign a broker fee agreement that includes at minimum, and does not conflict with, the Standard Broker Fee Agreement set forth as Appendix B to this Article.
(f) The broker has an in-force broker bond on file with the Department as required by Insurance Code sections 1662, 1663, and 1665.
(g) The broker discloses, concurrent with the conveyance of an initial premium quotation, the fact that a broker fee may be charged.
1. New section filed 8-25-2000; operative 11-23-2000 pursuant to Government Code section 11343.4(c) (Register 2000, No. 34).
Note: Authority cited: Section 790.10, Insurance Code. Reference: Sections 790, 790.01, 790.02, 709.03(b) and 790.06, Insurance Code.
