We encounter several competitors that give bad rewards to business. In general, most insurance brokers work very hard to do the right things, but others are not. Most brokers earn a 10% (sometimes 15%) commission on coverage placement. The fee is the aggregate income of brokerage commissions. After that, pay brokerage fee (rent, high salary employee, such as intermediary nonperforming insurance premium etc), leaving a profit that is not huge.
Therefore, if you pay $ 45,000 for your medical malpractice insurance, the broker will be paid $ 4500 from the insurance company. I am paid by the insurance company because this fee is included in the fee. If you go directly to an insurance company that purchases coverage, the insurance company will not lower the insurance fee of the brokerage fee. You will keep money even without a broker.
Broker's next coverage area is a fee. The insurance broker must challenge the fee charged to the customer by law as a brokerage fee. A fee of $ 350 to $ 1000 will be displayed. This is an additional reward that the broker charges to cover the overhead. Many brokers can not profit with a promotion of less than $ 50K or $ 100K, depending on the type of service they offer and the cost of staff who provides those services. The only other fee you can see is premium tax and stamping fee (2/1/10 valid at 3.225% of CA). Rather than going to the broker this money will be handed over to the state where taxes are paid and to the company of a third party respectively.
We interviewed 30% of the fee and 15% of the fee for brokerage fee and total fee to be 45%. I will call this broker ABC. Hidden these fees with insurance premium estimates, they were called premiums, binding fees, underwriting fees etc. This is not ethical. Because all of these fees should have been called brokerage fees as these fees are those who are paid.
If you find a fee other than brokerage fee and insurance premium tax on your medical malpractice insurance estimate, please ask a question. Also, please be sure to read the check of Premium · Finance · Quote when procuring insurance fee. Most brokers arrange for loans and charge a small fee to raise the interest rate slightly.
However, the ABC broker who had claimed 45% of the compensation claimed a large fee for financing. Therefore, since the broker added 5% of the fee buried in finance, the interest rate that was supposed to be 8% or 9% was actually 22%. Therefore, the total compensation was 50%, incredible!
Another indication of having an unethical broker is when you push you towards a risk-retaining group or RRG without providing an "AM" best-of-breed insurer. The AM Best Rating is an insurance company's industry rating system, not evaluated as a perjury but is evaluated as being suitable for evaluating the financial strength of a medical malpractice insurance company. In my opinion, RRG is a very legitimate option for medical malpractice insurance in cases where a financially highly rated insurance company is not charged for fees or if it can not cover the risk. Brokers like ABC love to recommend RRG because there is a possibility that RRG will be burdened with reserves such as insurance companies and it may be less expensive than regular insurance companies.
Brokers like ABC offer a doctor's RRG estimate with great savings and add significant cost to cheap RRG insurance quotes. Below are some concerns related to the RRG broker must explain before introducing RRG to you.
o In the event of bankruptcy (RRG is more likely to become unpayable than "A-rated Priority AM Best Normal Insurance Company") Judge, to you and all members of the RRG, this is a double premium , Your new insurance company that replaced bankrupt RRG, it means you may be paying a bankrupt RRG ordered to finance it relaxes it.
o If you are in the RRG, most standard insurance companies will not bring you until you change to the "A" category, which will be rated as AM Best insurance company.
o Some hospitals do not need a doctor when receiving RRG. Intermediaries must check with the hospital before purchasing the RRG.
o If RRG bankrupts while holding an open claim, you will not be able to pay attorney's defense allowance, the lawyer will be paid and your personal judgment will be given responsibility.
Finally, as long as you do not already exist in the standard medical malpractice insurance market, the broker maintains your same insurance company and does not offer multiple options each year. Please note that the broker is not your profit, you may be leaving you to the same insurance company each year. It could just be with the same insurance company to maintain high fees based on high premiums. They will lose as they pay the% of premium if you save money. This is a poor business model. If you discover this you will lose you as a customer, but some brokers will be blessed with this opportunity.
If you have a good honest broker, he will tell you all of this. If you have a broker like ABC, he / she tells you that he / she is saving money while you pay rewards for obscene while you claim excessive compensation.
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