By Randall Kleinman, JD, CPCU, CLU Agents' Legal Issues provides a brief general overview of a complex area of law and neither the author nor Rough Notes intends it to be taken as legal advice for any specific legal problem. For a specific problem, consult legal counsel that understands the law of insurance agencies, and provide all the details. Premiums are a fun topic. Not to mention commissions.
Traditional premiums are still the lifeblood of most agencies.
In spite of a lot of talk a few years ago regarding fee-based consulting, the vast majority of agencies earn most of their income from premium transactions. Even on the life insurance side, fee-based financial planning has made less of an impact than was predicted a decade ago. Insurance payments and the role of the agent This article will look at a number of legal issues connected with premiums. First, we'll look at what an insurance payment may consist of, including not only premium, but also a quick look at service and inspection charges as well as premium taxes. Second, we'll look at premium finance from the viewpoint of agents.