Residential Insurance Home-Renters

State of California Department of Insurance 7 An insurance broker is an independent go-between who searches the marketplace for an appropriate policy in the interest of clients and is not an insurance company employee. The broker represents you, the customer. A broker-agent acting in a broker capacity can charge you a broker fee for the services you receive. In order to charge a broker fee, a broker must meet the following requirements: • The consumer agrees to the fee in advance, after full disclosure. • The fee is not being charged on a FAIR Plan submission. • The broker is not an appointed agent of the insurer with which coverage is or will be placed. • The broker provides the consumer with a specific disclosure form. • The consumer and broker sign a Broker Fee Agreement containing certain standard information. • The broker has an in-force broker bond on file with the Department. • The broker discloses the existence of the broker fee at the time of the initial premium quote. Your producer must provide you with a copy of the current Department of Insurance pamphlet “Residential Insurance” when placing residential coverage. Dealing with a Broker-Agent