NOTICE - Collection of Insurance Consultant's Fees by Insurers

To: All Companies Writing Health Insurance in Nebraska

The Nebraska Department of Insurance has received inquiries asking whether an insurer can collect fees on behalf of an insurance consultant from a new insured if the insurance business is placed by an insurance consultant. The insurer would hold the fees for eventual disbursement to the insurance consultant. The answer to this question is no.

An insurance consultant is obligated under Neb.Rev.Stat. §44-2629 to serve the interests of their client with objectivity and complete loyalty. The fee for the insurance consultant’s services is between the insurance consultant and the client, and the fee must be specifically noted in the consultant contract or agreement. Furthermore, it is unlawful for any insurance consultant, or any agency or sales organization with which the consultant is connected, to receive any part of any commission or compensation paid by an insurer in connection with the sale or writing of any insurance which is within the subject matter of any consulting service performed prior to the sale of insurance and for which such consultant has contracted to receive a fee. It must be noted that under Neb.Rev.Stat. §44-2631, a renewal of insurance shall not be considered a sale of insurance.

If an insurer collects fees on behalf of the consultant, it would be construed as compensation paid by the insurer. For information on how to obtain a consultant’s license, please visit the Department of Insurance website located at

Questions concerning this notice may be directed to Martin Swanson, Counsel, at Hmartin.swanson@nebraska.govH.