New York Insurance Law Question
- 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?
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
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
OF THE INSURANCE LAW.
A $55 POLICY FEE WILL BE BILLED FOR NEW APPLICATIONS AND YEARLY
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