New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 17B - INSURANCE PRODUCER STANDARDS OF CONDUCT: COMMISSIONS AND FEES
Subchapter 3 - FEES
Section 11:17B-3.1 - Fees

Universal Citation: NJ Admin Code 11:17B-3.1

Current through Register Vol. 56, No. 18, September 16, 2024

(a) Insurance producers may charge a fee for services rendered in the sale of personal lines property/casualty or personal lines surplus lines insurance, subject to 11:17B-3.2. Insurance producers acting as agents for an insurance company for personal lines insurance shall not charge or receive any fee on a policy to or from a policyholder or insured for services rendered as an insurance producer except for reimbursement of actual out-of-pocket expenses incurred obtaining documents and other materials related to the underwriting process for new automobile applications and subject to the limitations of 11:17B-3.2(a)9. Subject to (b) through (g) below, insurance producers selling, soliciting or negotiating commercial lines insurance may charge and receive fees for services rendered to an insured or prospective insured.

(b) Any insurance producer charging a fee to an insured or prospective insured shall first obtain from the insured or prospective insured a written agreement, which shall be separate and apart from all other agreements and applications, and shall contain the following provisions and no other provisions:

1. A clear statement of the amount of the fee to be charged and the nature of the service to be provided therefor;

2. A statement that such fees are not a part of the premium charged by the insurance company and that such fees can be charged only if the insured or prospective insured so consents in writing;

3. A clear statement as to whether a commission will be received from the purchase of insurance; and

4. The signature of the insured or prospective insured and the licensed insurance producer and the date of execution of the agreement.

(c) Any fee charged by an insurance producer shall bear a reasonable relationship to the services provided and shall not be discriminatory.

(d) A new written agreement shall be entered into for each fee charged and each time a fee is charged. An initial agreement shall not be used as the sole basis to charge a fee for a renewal policy.

(e) No insurance producer may pay or return, or offer to pay or return, all or part of a fee charged as an inducement to purchase a specific policy, or coverage within a policy, or coverage from a particular insurer.

(f) No insurance producer may charge a fee for services not actually performed.

(g) No insurance producer, except a duly authorized producer employed by and acting on behalf of his or her employer, may execute a written fee agreement on behalf of any other insurance producer or premium finance company.

Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.