I wonder what other brokers Garamandi is investigating? And, I believe Superior Access is a Hartford AGENT, just like any other Hartford agent. They just act like a wholesaler, as do many others around the country.
Also, I have no doubt that the Hartford contract makes the agent liable for fines, penalties, etc., so, Hartford may have an action against Superior Access and any others Garamandi gets.
This is amazing. No mention that Mr Garamendi intends to anything to stop the distributor. The agency will just move to another carrier an do the same thing.
This guy is establishing a long track record of irresponsibility.
What do you expect from Garamendi, the constant politician. He has no clue in the insurance industry and how it works. But I have to say, with Hartford\’s management structure, I wouldn\’t doubt they were in on the fees and turned a blind eye to them. They are all about greed. I washed my hands of them 3 years ago and wish I had done it sooner.
I wonder if Hartford even knew about it? Did the broker disclose these charges in advance? If the broker violated the rule then, indeed, they should pay the piper not Hartford, assuming they were unaware of the practice.
Superior Access has waived all broker fees on Personal Lines business. You will no longer be charged a broker fee when you bind any personal lines policy with any of our carriers.
——————————————————————————–
No Broker Fees on Policies Placed With The Hartford or CNA
Until further notice Superior Access has waived all broker fees on business submitted with The Hartford or CNA. The Hartford and CNA offer exceptional rates on the following classes of business:
•BOP
•Commercial Auto
•Mid-Market
•Umbrella/Excess Liability (CNA)
•Workers Compensation
•Personal Lines
(The Hartford)
Eventhough Hartford never knew about the situation, commissioner wants to after the BIG fish not little one because there\’s nothing to gain. GA\’s shouldn\’t accept additional fees in first place if they\’re appointed as agent. Hartford should terminate the contract with Superior Access and other GA\’s because they\’re giving appointments to ANY non-qualify brokers.
Eventhough Superior Access waive all broker fee, I doubt that outside brokers won\’t charge fees. How are you going to control it? Those brokers will do anything to charge fees for extra money because DOI will go after the BIG fish anyway!!!
Garamendi says that he knows Hartford did not receive any of the fees but that Hartford is responsible for acts of its agent.
The issue here is BROKER fees! Superior Access was acting as a broker between Hartford and the policyholder\’s broker, not as an agent of Hartford. California law does not permit a broker to receive commission AND a broker\’s fee on the same policy, a California regulation that is observed in the breach!
Garamendi will be guilty of gross unfair discrimination if he persecutes Hartford for this offense without going after all other carriers who do the same thing, most of whom unknowingly because the fees are billed outside the policy premium; and without going after the true perps, the brokerage community.
In fairness to the brokerage community, there are extra handling costs incurred by being a go-between which are not adequately covered by commission, especially in the case of smaller policies. The choices are: 1) Do things according to law and lose money; or 2) Avoid small accounts and leave them without a market.
Unless I am having a \”blond\” moment, I think John has it backwards. I believe agents cannot collect fees but brokers can.; Sup Access had an agency relationship with HF, therefore, not allowed to tack on fees.
I beleive that California does allow both commission and broker fees as long as both are disclosed to the buyer. Wholesale brokers routinely charge broker fees.
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I wonder what other brokers Garamandi is investigating? And, I believe Superior Access is a Hartford AGENT, just like any other Hartford agent. They just act like a wholesaler, as do many others around the country.
Also, I have no doubt that the Hartford contract makes the agent liable for fines, penalties, etc., so, Hartford may have an action against Superior Access and any others Garamandi gets.
This is amazing. No mention that Mr Garamendi intends to anything to stop the distributor. The agency will just move to another carrier an do the same thing.
This guy is establishing a long track record of irresponsibility.
What do you expect from Garamendi, the constant politician. He has no clue in the insurance industry and how it works. But I have to say, with Hartford\’s management structure, I wouldn\’t doubt they were in on the fees and turned a blind eye to them. They are all about greed. I washed my hands of them 3 years ago and wish I had done it sooner.
I wonder if Hartford even knew about it? Did the broker disclose these charges in advance? If the broker violated the rule then, indeed, they should pay the piper not Hartford, assuming they were unaware of the practice.
Wednesday, April 05, 2006
——————————————————————————–
Zero Broker Fees On Personal Lines
Superior Access has waived all broker fees on Personal Lines business. You will no longer be charged a broker fee when you bind any personal lines policy with any of our carriers.
——————————————————————————–
No Broker Fees on Policies Placed With The Hartford or CNA
Until further notice Superior Access has waived all broker fees on business submitted with The Hartford or CNA. The Hartford and CNA offer exceptional rates on the following classes of business:
•BOP
•Commercial Auto
•Mid-Market
•Umbrella/Excess Liability (CNA)
•Workers Compensation
•Personal Lines
(The Hartford)
Eventhough Hartford never knew about the situation, commissioner wants to after the BIG fish not little one because there\’s nothing to gain. GA\’s shouldn\’t accept additional fees in first place if they\’re appointed as agent. Hartford should terminate the contract with Superior Access and other GA\’s because they\’re giving appointments to ANY non-qualify brokers.
Eventhough Superior Access waive all broker fee, I doubt that outside brokers won\’t charge fees. How are you going to control it? Those brokers will do anything to charge fees for extra money because DOI will go after the BIG fish anyway!!!
Garamendi says that he knows Hartford did not receive any of the fees but that Hartford is responsible for acts of its agent.
The issue here is BROKER fees! Superior Access was acting as a broker between Hartford and the policyholder\’s broker, not as an agent of Hartford. California law does not permit a broker to receive commission AND a broker\’s fee on the same policy, a California regulation that is observed in the breach!
Garamendi will be guilty of gross unfair discrimination if he persecutes Hartford for this offense without going after all other carriers who do the same thing, most of whom unknowingly because the fees are billed outside the policy premium; and without going after the true perps, the brokerage community.
In fairness to the brokerage community, there are extra handling costs incurred by being a go-between which are not adequately covered by commission, especially in the case of smaller policies. The choices are: 1) Do things according to law and lose money; or 2) Avoid small accounts and leave them without a market.
Unless I am having a \”blond\” moment, I think John has it backwards. I believe agents cannot collect fees but brokers can.; Sup Access had an agency relationship with HF, therefore, not allowed to tack on fees.
I beleive that California does allow both commission and broker fees as long as both are disclosed to the buyer. Wholesale brokers routinely charge broker fees.