Wednesday, September 2, 2009

Insurance Agent Taxes

Besides the taxes on insurance policies, did you know there are insurance agent taxes as well? According to insurance companies, since the internet has taken over a lot of their sales agent business, the extra insurance agent taxes now help to give an insurance agent higher commissions.

Is this fair to the consumer who feels more comfortable using an insurance agent rather than the internet? Not at all, many consumers feel this is not a legit reason for insurance agent taxes to be added to their already high insurance premiums.

The older consumers who are not computer literate should not be paying insurance agent taxes. Agents makes a percentage from each plan they sell, the internet has lessened there sales but that is not a reason to tack on more money.

Are these charges legit because they are called insurance agent taxes? According to the federal law, no. If an insurance agent needs to disclose all monies being charged before the day of the signing of an insurance policy.

As a consumer, you have the right to not sign and refuse a policy if you were unaware of certain charges or confused about certain charges. Insurance agent taxes do not have to skyrocket because of silly mistakes.

Always ask questions to the insurance agent before signing any policy. While getting quotes, if the insurance agent does not mention any insurance agent taxes or if he answers your question about taxes with a no, be sure to document the comment in case you use that particular agent and taxes show up on your insurance policy.

Once you are standing with a pen in hand, think of the insurance agent taxes as a way manipulating you into signing a contract without being totally honest from the beginning. A little thinking can go a long way and save you from alot of problems.

The Professional Insurance Agents Association is cutting down on fraud by insurance agents who do not follow the laws they signed. It is a federal offense for an insurance agent who charges extra money or taxes to their customers without disclosing the reason first. The government is aware of the insurance agent taxes and do not agree with this practice. If you have been a victim of insurance agent taxes, please get in touch with your local chapter to find out how to proceed with caution.