DFS Discusses Fee for Health Policy Services
The Florida Department of Financial Services (DFS) reminds Florida health insurance agents that they may enter into contracts with consumers to charge a flat fee in lieu of receiving commissions from the insurer for individual health policies. This opportunity arises under the new SB 1386 passed in the 2016 legislative session. DFS attributes the introduction of the legislation to the elimination or significant reduction of commission payments to agents by health insurers for some types of individual health policies.
DFS points out that requirements of the new law include having a written contract between the agent and the party to be charged. The agreement should state the fee that will apply and the services that will be provided. The contract also must inform the consumer that any commission or compensation paid to the agent or agency by an insurer or other persons or entities in consideration for the policy written will be promptly rebated to the party (consumer) named in the contract. Lawful compensation is limited to specific services by the licensee, such as giving or offering advice, counsel, recommendation, or information in respect to the terms, conditions, benefits, coverage, or premium of insurance policies.