Current through Register Vol. 56, No. 18, September 16, 2024
(a) An insurance
producer may charge a fee for services rendered in the sale or service of
personal lines property/casualty or, where the producer is the originating or
retail producer, in the sale or service of personal lines surplus lines
insurance subject to the following conditions:
1. No service fee for any one policy shall
exceed $ 20.00.
2. No insurance
producer may charge a fee for completing accident or claim report forms, nor
shall a fee be charged for providing forms required by an insurer for servicing
a policy.
3. An inspection fee may
only be charged on a surplus lines policy and shall not exceed two percent of
the premium or $ 10.00, whichever is greater; except that the insured may be
charged the actual amount paid to an unrelated firm or person for the service
if said firm or person is not an insurance agent or insurance broker.
4. No charge may be made for services not
actually performed.
5. A maximum
service fee of $ 15.00 may be charged by an insurance producer acting as an
insurance broker or an insurance consultant upon placement of a renewal, except
that an inspection fee may be charged in accordance with (a)3 above if no
inspection of the property has occurred during the three years prior to
issuance of the renewal policy.
6.
Only one service fee per policy per year shall be charged, regardless of
whether the policy term is for less than one year.
7. A motor club membership sold in connection
with a policy shall not be considered separate coverage for the purpose of
charging a service fee.
8. A motor
club claim arising from the same loss as a claim under a private passenger
automobile coverage policy shall not be considered a separate claim for
purposes of charging a fee.
9.
Insurance producers may charge a service fee for new automobile insurance
applications, subject to the $ 20.00 per policy limit and the other conditions
referenced in (a)1 through 8 above, as reimbursement for out-of-pocket costs in
obtaining documents or other materials related to the underwriting process, if:
i. The producer retains verifiable proof of
the costs incurred;
ii. The
producer provides copies of all such documents or other materials to the
applicant, regardless of whether the costs incurred by the producer in
procuring the documents or materials exceeded the $ 20.00 limit; and
iii. The applicant does not provide the
producer with a copy of the underwriting document dated within the previous 90
days.
(b) In
addition to charging the actual cost incurred for any services performed by a
person that is not associated with the surplus lines producer, such as
inspection services, for purposes of N.J.S.A. 17:22A-38b, a surplus lines
producer may charge a fee to an originating producer in connection with the
negotiation or procurement of any contract of surplus insurance in amounts as
follows:
1. For personal lines, a fee not to
exceed $ 50.00; and
2. For
commercial lines, a fee equal to the greater of two percent of the premium for
the applicable policy period or $ 100.00, but in no event in excess of $
250.00.
(c) No insurance
producer may charge a service fee for services rendered in the sale or service
of life or health insurance.
(d)
Bail bond agencies shall not charge the following fees:
1. Fugitive fees (fees charged for the
apprehension of a defendant who fails to appear for a court date and
administrative fees associated with creating a fugitive file). Surety companies
may, however, charge fugitive fees as set forth in N.J.A.C. 11:1-40;
2. Banking fees (fees charged for returned
checks/stop payments);
3.
Service-related fees, such as travel fees and after-hour service
fees.
