Licensed producer may charge a fee on a commercial transaction in if the provisions of Indiana Code 27-1-15.6-24 are followed.
As guided by the Indiana Department of Insurance (IDOI), a licensed producer, agent, or broker may charge a fee on a commercial transaction in which he or she does not receive a commission. The provisions of Indiana Code 27-1-15.6-24 are as follows:
IC 27-1-15.6-24Commercial property and casualty insurance
Sec. 24.
- This section applies to commercial property and casualty insurance coverage described in Class 2 and Class 3 of IC 27-1-5-1.
- A licensed insurance producer may charge a commercial insured a reasonable fee to reimburse the insurance producer for expenses incurred by the insurance producer at the specific request of the commercial insured, subject to the following requirements:
- Before incurring any expense described in this subsection, the insurance producer must provide written notice to the commercial insured stating that a fee will be charged and setting forth the:
- amount of the fee; or
- basis for calculating the fee.
- The amount of a fee and the basis for calculating a fee may not vary among commercial insureds.
- Any fee that is charged must be identified separately from premium and itemized in any bill provided to the commercial insured.
- Before incurring any expense described in this subsection, the insurance producer must provide written notice to the commercial insured stating that a fee will be charged and setting forth the:
- A licensed insurance producer may charge a commercial insured a reasonable fee for services that are provided at the request of the commercial insured in connection with a policy that provides coverage described in subsection (a) and for which the insurance producer does not receive a commission or other compensation, subject to the following requirements:
- Before providing services, the insurance producer must provide to the commercial insured a written description of the services to be provided and the fee for the services.
- Any fee that is charged must be identified separately from premium and itemized in any bill provided to the commercial insured.
- A licensed insurance producer who acts as a consultant and provides services described in this section shall comply with the requirements of this section and section 23 of this chapter.
- A licensed insurance producer may charge a late fee for agency billed accounts or policies that are more than thirty (30) days delinquent. A late fee may not exceed one and three quarters percent (1.75%) per month of the amount due on the due date.
For more information, please refer to IDOI Bulletins:
- Bulletin 157 “Personal Property and Casualty Fees”