Agents, Brokers To See 6% Fee Reduction in California

California insurance agents, brokers and adjusters will see a reduction in fees, thanks to California Department of Insurance (CDI) changes that take effect July 1, 2009.

The 6 precent reduction in fees will apply to hundreds of fees charged by CDI should result in $10.3 million in annual savings for more than 300,000 licensed insurance agents, brokers and adjusters, the DOI said. The most common fee is paid by agents and brokers and adjusters for their licenses. The cost of renewing a license will decrease from $144 to $135. The total savings for license renewals alone will be $3.5 million annually, the DOI predicted.

“It’s important for government to operate as efficiently as possible — and this is especially true in tough economic times,” said Insurance Commissioner Steve Poizner. “After completing a top down review and implementing a permanent 10 percent cut in the Department’s budget, we are able to reduce the fees CDI charges.”

Additionally, the CDI will no longer print and mail hard copies of its licenses, as part of the Commissioner’s goal to have paperless transactions with insurance agents, brokers and insurers by 2010. Individuals and business entities will receive an e-mail with instructions and a Web link to download their license from the CDI.

To view the new fee schedule, visit http://www.insurance.ca.gov/0400-news/0100-press-releases/0080-2009/release010-09.cfm. For more information, visit www.insurance.ca.gov.

Source: CDI