Ask Tim

Episode #4: Referral Fees

In episode #2, we talked about what agents and brokers can and cannot give clients as gifts. But what about if you want to give someone a thank-you gift for a referral? What are the rules? Wonder no longer -- just take a look at Episode #4 to find out:

1. Under what conditions you can share commissions with another licensed producer.
2. Under what conditions you can pay a referral fee to someone who doesn't have a license.
3. The type of car favored by insurance geeks everywhere.

Also, you now have an additional way to get in touch with me when you have insurance technical questions. You can find me on AOL Instant Messenger or by logging in to Meebo.com. I'm normally logged in during the day, and you can find me under the user ID tdog4494 (don't ask). This provides one more avenue to those of you who like to use instant messaging, and it further solidifies my reputation for geekdom.

Thanks for watching!

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Insurance Dept. Opinions: Age-Based Underwriting, OEM Parts, & Credit Cards

The New York Insurance Department’s Office of General Counsel issued the following advisory legal opinions in February:

·         An insurer may use, among other legitimate underwriting criteria related to the risk insured, the length of time that the insured has renewed his or her coverage, and the advanced age of the policyholder, in deciding whether to renew an insured’s homeowner’s policy. If a policyholder is otherwise eligible for nonrenewal under the age and tenure criteria, the insurer may not renew a policy if the policyholder simply asks the insurer to, as this would be unfair discrimination.

·         The insurance law does not require an insurer to send a conditional renewal notice for a personal auto policy where the policy states that the insurer will use original equipment manufactured parts for repairs only to vehicles less than ten years old.

·         An entity that provides a service to insurance policyholders that enables them to pay their insurance premiums electronically by credit card may charge those policyholders a fee to cover credit card and other service expenses.

The Department posted these and other opinions in February. Visit the Department’s Web site to find any opinion issued since 2000.