Section 2189.5 - Unfair and Deceptive Acts and PracticesThe following acts shall be deemed unfair or deceptive when committed by a broker who has charged or will charge a broker fee:
(a) Failing to provide the consumer with the Standard Broker Fee Disclosure required by subdivision 2189.3(d).(b) Failing to complete all relevant portions of the broker fee agreement required by subdivision 2189.3(e) before giving the agreement to the consumer for review.(c) Failing to provide to a consumer a fully completed copy of the broker fee agreement required by subdivision 2189.3(e), signed by both the consumer and the broker, as soon as reasonably practicable.(d) Failing promptly to refund an entire broker fee if the broker acted incompetently or dishonestly resulting in financial loss to the consumer, or if the broker did any of the following regardless of financial loss:(1) Negligently or intentionally misquoted the premium to the consumer, resulting in an uprate.(2) Permitted an unlicensed employee to transact insurance for, or on behalf of, the consumer paying the fee, where the Insurance Code required that employee to be licensed.(3) Failed to refund unearned premium as required by Insurance Code section 393(a), except where permitted by Insurance Code sections 393(b) or 1735.5.(4) Negligently or intentionally failed to place the consumer's coverage within the time period indicated to the consumer or within a timely manner.(5) Negligently or intentionally failed to remit a consumer's premium payment to an insurer or general agent, resulting in policy cancellation.(6) Failed to disclose the existence of the insurer's periodic payment plan, if one was available.(7) Failed to refund unearned commission in the broker's possession to the person to whom it is owed within 30 days of the unearned commission being generated due to amendment or cessation of coverage.(8) Failed to remit or apply to another policy premium finance company credit owed to the consumer/borrower within 15 days or receiving the credit from the premium finance company.(e) Failing to place a consumer with an insurer with which the broker is appointed as an agent, solely for the purpose of charging a broker fee.(f) Charging or attempting to charge a broker fee for a renewal, endorsement, or other service, that was not disclosed under section 6 of the Standard Broker Fee Agreement.Cal. Code Regs. Tit. 10, § 2189.5
1. New section filed 8-25-2000; operative 11-23-2000 pursuant to Government Code section 11343.4(c) (Register 2000, No. 34). Note: Authority cited: Section 790.10, Insurance Code. Reference: Sections 790, 790.01, 790.02, 709.03(b) and 790.06, Insurance Code.
1. New section filed 8-25-2000; operative 11-23-2000 pursuant to Government Code section 11343.4(c) (Register 2000, No. 34).