Glossary · Insurance agency commissions
Appointment fee
An appointment fee is the fee a state insurance department charges when a carrier appoints a producer or agency, and in many states again at each renewal of the appointment; who pays it, carrier or agency, depends on the state and the agreement.
What it means
In Washington, the statute puts the fee on the insurer. RCW 48.17.160 says: “An insurer shall pay an appointment fee, in the amount and method of payment set forth in RCW 48.14.010, for each insurance producer or title insurance agent appointed by the insurer.” The fee schedule in RCW 48.14.010 lists $20.00 for the initial appointment and each renewal of an insurance producer’s appointment, every two years. Amounts, renewal cycles and who bears the cost vary by state.
What it means for commission: fees are small per appointment but add up across producers, carriers and states, and some carriers pass them on to agencies or deduct them from commission. A deduction labelled as a fee on a statement should match what the agency agreement allows. When an appointment ends, the carrier files a termination instead; see carrier termination.
How it shows on a commission statement
When a carrier recovers appointment fees, they usually show as a non-policy line or a deduction from the statement total, not on a policy. They are easy to miss inside a net deposit.
In reconciliation, and what Lapidar does
Lapidar checks policy commission lines against the book and schedule. A line without a policy number, such as a fee, is not matched to a policy, so look at those lines yourself.
Example
- Commission on policy lines
- $7,840.00
- Fee line: appointment renewals, 6 producers
- −$120.00
- Net deposit
- $7,720.00
- Does the agreement allow fee recovery?
- To check
Common mistakes to check
- Assuming the agency never pays appointment fees; some carriers pass them on.
- Not removing producers who left, so appointment renewal fees keep accruing.
- Treating a fee deduction as a commission shortfall on a policy.
Questions
Who pays the insurance appointment fee, the carrier or the agent?
It depends on the state and the carrier. In Washington, RCW 48.17.160 places it on the insurer; some carriers elsewhere pass fees to agencies.
How much is an insurance appointment fee?
Set by each state. Washington’s RCW 48.14.010 lists $20.00 for each insurance producer appointment and renewal, every two years.
Do appointment fees renew?
In many states, yes, on a set cycle. Washington’s renewal is every two years.
Sources
- Washington State Legislature, RCW 48.17.160: appointment of agents, termination, fees. Retrieved October 14, 2026.
- Washington State Legislature, RCW 48.14.010: fee schedule. Retrieved October 14, 2026.
Lapidar is commission reconciliation software for independent insurance agencies, in its founding pilot. Related: carrier appointment.