Can referral fees be paid and accepted by insurance agents?

[AllRightsReserved]

I tried looking for this myself on google but everything I found had to do with insurance agents PAYING referral fees out to non licensed people. I didn't find anything about an insurance agent BEING paid for referrals they give out. Does anybody know if this would be a conflict of interest or considered illegal?

[ghost rider]

Most insurance companies have a strict written policy against giving their agents any kind of "bribe". They are not supposed to accept money or gifts of any kind. That being said, I'm sure it still happens. You certainly would not want to be caught doing this and you may offend some agents by offering it. I have never had to offer money or gifts of any kind to get referals from agents. I offer them quality repairs and make sure their insureds are taken care of promptly. I think most agents appreciate good service for their customers more than a few referal bucks or trinketts. I do, however, give out Christmas gifts at the end of the year as a "thanks for the business". This may cross the line slightly but it is not intended to be an incentive to get business, but a thank you for letting me do work for them over the last year. It is also not a big pile of money or anything extravagant. I bake about 120 dozen Christmas cookies and hand them out. Everyone appreciates homemade goodies. If you do good quality work and take care of your customers, you won't have to buy referals.

[Brent Deines]

A batch of homemade cookies is not crossing the line in my opinion and having done exactly that same thing many, many times I can tell you I've never run into an agent that was offended by the gesture. Giving the agent a Rolex or a cruise to the Bahamas is crossing the line.

[screenman]

If I gave my handmade cookies to an agent they would end up in hospital, now if I gave the wife's cookies that may be a different matter.

[ghost rider]

If I gave my handmade cookies to an agent they would end up in hospital, now if I gave the wife's cookies that may be a different matter.

You got me there Screen! The line "I bake" should have been "we bake". Definitly need help with my baking skills. I will, however, take credit for product testing. I am pretty good at that!

[Brent Deines]

Not only was I not allowed to do the baking but also banned from delivering. It seems agents were not impressed with crumbs.

[screenman]

[ghost rider]

I have been thinking about buying a LOT of new windshield repair equiptment - new bridges, new curing lamps, a lot more resin etc. If there were only some way to help me decide. and now my watch quit........have not had a vacation for a long time............

[mousestomper]

I'm not sure how it is in other states, but I know for a fact that in Colorado it is 100% illegal to give any sort of incentive or referral to agents in return for business. I am pretty sure that it's different in most other states though.

[Eco Steam]

I think the logical/common sense answer would be that agents don't get compensated for referrals. I don't see a problem with going to a local bakery and buying a dozen of really good cookies and dropping them off at their office, and it could be labeled as a thank you, or a just because you're a cool agent, they don't need to know that the reason is because they send you referrals.

Thats my 2 cents....

I run a mobile detailing, WSR, and HLR here in Austin, and we're changing everything to eco friendly steam washing within the next couple of weeks and I plan to do the same here this spring/summer with cookies & breakfast tacos, just depends on which company and time of day as a way to get our foot in the door with the new washing technology we will have. Plus, after a few months of working with them, I will treat them 1 day with the same. Nothing wrong with showing that you appreciate them.

ATX