Miscellaneous Fees Added to Insurance Policies

NOTE: This Bulletin is intended solely for informational purposes. It is not intended to set forth legal rights, duties, or privileges, nor is it intended to provide legal advice. Readers should consult applicable statutes and rules and contact the Delaware Department of Insurance if additional information is needed. ♦INSURANCE.DELAWARE.GOV♦ 1351 W. NORTH ST., SUITE 101, DOVER, DELAWARE 19904 (302) 674-7300 DOVER♦ (302) 259-7554 GEORGETOWN♦ (302) 577-5280 WILMINGTON TRINIDAD NAVARRO COMMISSIONER STATE OF DELAWARE DEPARTMENT OF INSURANCE FORMS AND RATES BULLETIN NO. 41 TO: ALL PROPERTY & CASUALTY INSURANCE CARRIERS DOING BUSINESS IN DELAWARE RE: MISCELLANEOUS FEES ADDED TO INSURANCE POLICIES DATED: July ___, 2025 The Department has seen an increase of rate filings by property and casualty insurance carriers that include various fees that are added to the cost of the issuance of an insurance policy. This bulletin clarifies the position of the Department regarding the charging of fees beyond the policy premiums on policies issued in the State of Delaware. In formulating premium rates, Delaware law requires that due consideration be given for various factors, including, specifically, past and prospective expenses both countrywide and those specially applicable to Delaware, and other relevant factors. See 18 Del. C. § 2503(a)(3)e. and f. See also, 18 Del. C. § 2604(b)(1) and (6). It is the Department’s position that a carrier’s operating expenses are required to be included as part of the filed rates and incorporated into the policy premium. Carriers should not add fees to policies other than those charged for installments, late payments, or invalid or rejected payment methods. Installment fees may vary based on the number and frequency of installments but may not vary based the method of payment. Policy, inspection, issuance, administrative, etc. fees are not allowed. Fees for services that are provided in addition to the policy terms, that are optional and elected by the insured, may be charged for that service separate from the policy. All fees charged by a carrier must be actuarially justified. Carriers shall have 6 months from the date of this Bulletin to bring filings into compliance with this guidance. Questions, comments, or requests for clarification about this Bulletin should be emailed to rate@delaware.gov. This Bulletin shall be effective immediately and shall remain in effect unless withdrawn or superseded by subsequent law, regulation, or bulletin. ____________________________________ Trinidad Navarro Delaware Insurance Commissioner 23