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Washington State Office of the Insurance Commissioner

Has a health carrier cut your commissions? Thinking of charging fees?

We've been contacted by many Washington state licensees who want to know if there is anything our office can do about carriers who are reducing or eliminating commissions. There are also a lot of questions regarding whether or not charging fees is allowed.

  • We are aware of some carriers’ actions which have resulted in the reduction or elimination of the commissions paid to a licensee for small group health insurance. Commission schedules of an insurance company, however, are not ordinarily regulated. Commissions are controlled by the agreement between the insurance company and the licensee.
  • As for fees, a producer in the state of Washington is allowed to charge a fee. This change was effective in July, 2009, when Washington adopted the producer model. We strongly suggest that licensees read RCW 48.17.270 and WAC 284.30.750 before beginning to charge applicants and policyholders a fee. There are disclosure requirements which must be made to the consumer in writing and prior to charging a fee.

Questions?

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Updated 05/07/2012

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