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Regulations of Connecticut State Agencies (Last Updated: June 14,2023) |
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Title38a Insurance Department |
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SubTitle38a-707-1_38a-707-9. Service Fees to Be Charged by Insurance Producers and Surplus Lines Brokers |
SubTitle38a-707-1_38a-707-9. Service Fees to Be Charged by Insurance Producers and Surplus Lines Brokers
| Sec. 38a-707-1. Service fees |
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Properly licensed producers organizing business in this state may charge service fees to their clients in accordance with the schedules shown in sections 38a-707-2 to 38a-707-8, inclusive, of the Regulations of Connecticut State Agencies. In addition to the scheduled fees a producer or surplus lines broker may charge as reimbursement any moneys expended by him for any (1) inspection report fees, (2) motor vehicle department reports, (3) policy reports, (4) credit card service fees, (5) regulatory fees from other jurisdictions, such as licensing fees, necessary for the placement of Connecticut risks with out-of-state exposure, (6) costs for overnight mail, or (7) telegrams or telephone calls necessary for the placement of the risk under consideration. |
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(Effective September 25, 1992; Amended December 22, 2003; Amended September 9, 2013) |
| Sec. 38a-707-2. Automobile |
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In accordance with subdivision (4) of subsection (a) of section 38a-329 of the General Statutes, Automobile Assigned Risk (initial policy only) $35.00; Automobile, other than automobile Assigned Risk, all forms, nonstandard $35.00. |
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(Effective September 25, 1992; Amended December 22, 2003) |
| Sec. 38a-707-3. Owners, landlords and tenants—Manufacturers and contractors |
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Non-standard Owners, Landlords and Tenants and non-standard manufacturers and contractor forms may be assessed a fee of up to five percent of premium, not to exceed $150.00. |
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(Effective September 25, 1992; Amended December 22, 2003) |
| Sec. 38a-707-4. Workers' compensation assigned risk |
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Workers' Compensation Assigned Risk policyholders may be charged one per cent of the premium subject to a ten-dollar minimum fee and a maximum fee of two hundred and fifty dollars. |
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(Effective September 25, 1992; Amended December 22, 2003) |
| Sec. 38a-707-5. Fire and allied lines |
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There will be no fee permitted for "Fair Plan" submissions. Non-standard fire and allied lines policyholders may be charged a fee of one per cent of the premium. |
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(Effective September 25, 1992; Amended December 22, 2003) |
| Sec. 38a-707-6. Substandard errors and omissions |
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Substandard Errors and Omissions policyholders may be charged ten dollars or five per cent of the premiums up to a maximum of two hundred and fifty dollars. |
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(Effective September 25, 1992; Amended December 22, 2003) |
| Sec. 38a-707-7. Surplus lines submissions |
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(a) A duly licensed producer and surplus lines broker involved in the same transaction may each charge a flat fee per policy for business placed in the surplus lines market, provided that the sum of the fee charged by such Producer and the fee charged by such surplus lines broker shall not exceed $250.00 in the aggregate. In the alternative, such producer and surplus lines broker may charge a fee of up to five percent of the applicable premium, not to exceed $500.00 in the aggregate. (b) The fees referenced in this section may be charged for new and renewal business. |
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(Effective September 25, 1992; Amended December 22, 2003) |
| Sec. 38a-707-8. Miscellaneous and renewals |
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(a) Any other service charges not scheduled in sections 38a-707-2 to 38a-707-7, inclusive, shall be submitted individually for approval. Except as provided in this section and in section 38a-707-7 of the regulations of Connecticut State Agencies, service fees shall not be permitted for renewals handled in the usual and customary manner, except that such fees may be charged on renewal business where a re-underwriting of the risk is necessary. (b) Where, pursuant to section 38a-707-1 to 38a-707-9, inclusive, of the Regulations of Connecticut State Agencies, the same insurance policy may be assessed a service fee by both an insurance producer and a surplus lines broker, the total of such fees shall not exceed five percent of the applicable premium or $500.00, whichever is less. |
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(Effective September 25, 1992; Amended December 22, 2003) |
| Sec. 38a-707-9. Service fee disclosure |
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No insurance producer or surplus lines broker shall charge any service fee as specified in sections 38a-707-2 to 38a-707-8, inclusive, without first obtaining a written memorandum, signed by the party to be charged, and specifying and clearly defining the premium applicable to the policy and the amount or extent of any service fees assessed pursuant to section 38a-707-1 to 38a-707-9, inclusive, of the Regulations of Connecticut State Agencies. Such memorandum shall be kept by the producer or surplus lines broker in such manner as to be easily subject to audit or inspection by the insurance commissioner or the Commissioner's agents. |
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(Effective September 25, 1992; Amended December 22, 2003) |