Agent Service and Billing Fees

Bulletin 36 AGENT SERVICE AND BILLING FEES July 2, 1979 The Indiana Department of Insurance has received several complaints from policyholders, relating that agents, when invoicing insurance premiums, are charging insureds additional fees identified as billing charges or professional service fee. These charges are in direct conflict with the provisions of Indiana Insurance Code 27-1-22-3 and Indiana Insurance Code 27-4-1-4. The Act applies to all companies and individuals engaged in the business of insurance in the State of Indiana. This bulletin does not apply to legally generated costs such as premium financing nor to installment charges made by insurance companies for periodic premium payments, providing such charges are included in the rate filed with the Department. Therefore, all agents engaged in the activity of imposing service or billing fees to policy premiums, shall immediately cease charging insureds the additional fees. Insurance companies shall not permit agents to add such charges to policies which they have issued. H. P. Hudson INSURANCE COMMISSIONER