What content should be included in the written compensation disclosure?
- The full amount of the fee the insured will pay.
- The full amount of any commission you will receive from the insurer.
- An explanation of any offset or reimbursement of fees or commissions.
- The full name of the insurer that may pay any commission to you.
- When you might receive additional future commission, such as contingent commissions. The disclosure must include that you may receive additional commission in the form of future incentive compensation from the insurer, including contingent commissions, and other awards/bonuses. It must also include that, upon request, you will furnish the insured or prospective insured with specific information about the additional commission.
Does the OIC provide a written compensation disclosure form?
Yes. You can find a compensation disclosure form on our forms page.
You don't have to use our form. You may create your own. Just make sure it contains the content required by law. See RCW 48.17.270(3) and WAC 284-17-625 (leg.wa.gov).
When must written compensation disclosure be provided to the insured/prospective insured?
You must provide written compensation disclosure prior to the sale of the policy. Both you and the insured must sign it. See RCW 48.17.270(4) (leg.wa.gov).
Can I include written disclosure of fees on the declarations page of the insured's policy?
No, unless the declarations page containing the charge for the fee has been submitted to the OIC and approved by the OIC. See RCW 48.18.180 (leg.wa.gov).
Occasionally, I transact business over the phone or by electronic means. How do I provide written compensation disclosure in this situation?
When someone makes a purchase over the phone or by electronic means and it is not reasonable for you to provide written compensation disclosure and obtain the written consent of the insured, you may document the transaction by sending the written compensation disclosure to the insured within 10 days after the purchase. See RCW 48.17.270(5) and WAC 284-17-625 (leg.wa.gov).
Can disclosure be made via a recorded telephone conversation?
If I charge fees to service or renew a policy after its original issue (such as policy changes, adding an insured or adding coverage, accepting installment payments, etc.), do I need to complete a new written disclosure form?
If you charge a fee or receive a commission that was not known prior to the sale of the policy, you must prepare a new written disclosure. Both you and the insured must sign it.
You must fully disclose any known fees and/or amounts of commissions (including recurring fees or commissions such as routing service charges that could be incurred during the policy term) prior to the sale of the policy.
How long do I need to keep the completed disclosure forms?
You must keep it on file for five years. See RCW 48.17.270(5) (leg.wa.gov).