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New York Insurance Law Question

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  • hobot
    A vintage motorcycle friend asked about this extra fee. He s NY lawyer but not as informed as the listee s here. Any ideas about how this applies or how to
    Message 1 of 1 , Aug 1 7:19 AM
      A vintage motorcycle friend asked about this extra fee.
      He's NY lawyer but not as informed as the listee's here.
      Any ideas about how this applies or how to avoid?

      hobot======


      I recently renewed my insurance over the phone with Progressive,
      but a week or so ago I got a bill for a $55 "broker's fee" from my
      local insurance agent, and I noticed two things:

      1. The local agent did absolutely nothing. I arranged the
      coverage with Progressive on the phone and paid with a credit
      card.

      2. A curious document to sign and return came with the bill, that
      reads as follows:

      NEW YORK STATE AUTHORIZES A BROKER FEE CAN BE CHARGED UNDER
      SECTION 2119
      OF THE INSURANCE LAW.

      A $55 POLICY FEE WILL BE BILLED FOR NEW APPLICATIONS AND YEARLY
      RENEWAL'S
      IS AUTHORIZED.

      X____________________________ Date_________


      I looked up the statute they cited, and it seems to have been to
      prevent insurance brokers from adding extra commissions onto a
      policy unless a policyholder consents in writing. So is this a
      real bill, or is it a voluntary contribution to the profit of my
      insurance broker? I think $55 is quite a bit more of a voluntary
      contribution than I want to make, considering the amount of work
      they did.
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