What Is a Per Diem fee Retaining to automobile insurance?

Insurance brokers fee?

• can an insurance broker in California charge a annual fee ( $ 100.00 ) every year , even if you dont deal with them directly anymore. my son used a broker last year when he purchased insurance the broker charged a fee , I agree with this , but when his renewel time came the insuance company sent him the next years fee's which he paid in full . Now the Insurance broker we originaly used charged him $ 100.00 even though he did not go thru the broker at all this time . he dealt directly with the insurance company. the broker said he signed a contract stating to pay the broker $ 100.00 for the next 3 years . I dont understand what for , we no longer use his services , and he doesnt do anything for us all year long or for the next 3 years for that matter ... is this legal ???? any help would be greatly appreciated .....

• Answer:

  Ah, see, once he buys a policy through the broker, he CAN'T renew that same policy by paying the insurance company directly, while cutting the broker out of the deal. That policy still is controlled by the broker, and subject to the broker's fee. Although it might LOOK like he's dealing directly through the insurance company, the broker's name is still going to show on the policy as the broker of record. Yes, this is legal.