Incidental Fees Charged by Insurance Producers

PURPOSE: This regulation implements the provisions of sections 375.052 and 379.356.2, RSMo Supp. 2001, with regard to insurance producers charging incidental fees in addition to premium. (1) As used in sections 375.052 and 379.356.2, RSMo, and in these rules— (A) “Incidental fee” means an amount equal to the cost of providing a service that is charged in addition to the receipt of premium from an insured or an applicant for insurance. (B) “Other similar services” includes payment by credit card, processing insufficient funds checks, obtaining records, reports, appraisals, inventories and other like documentation and making regulatory filings for an insured or applicant for insurance. (2) In order to charge an incidental fee, the insurer or insurance producer is required to actually perform a service or incur a cost. (3) Incidental fee shall include a charge for premium installments, late payments, policy reinstatements or other similar services. In the case of the fee for permitting insureds or applicants for insurance to make a premium payment by credit card, the insurer or insurance producer shall charge only the amount charged to the insurer or insurance producer by the credit card company. Any other fees not considered incidental fees shall only be charged by an insurance producer when there is in place a written contract between the insured or applicant for insurance and the insurance producer as permitted in section 375.116, RSMo, 20 CSR 700-1.100 and the form attached thereto as Exhibit A. (4) All incidental fees charged by the insurer or insurance producer shall be disclosed in writing to the insured or the applicant for insurance at or before the time the fee is charged. The insurer or insurance producer charging the fee shall provide to the insured or applicant for insurance a written disclosure. The disclosure may be contained in an itemized bill, invoice or an application that sets out the amount of the fee and the service for which it is being charged. (5) The amount of the incidental fees charged by the insurance producer shall be posted conspicuously at any location wherein the insurance producer markets or negotiates the sale or renewal of insurance policies with insureds or applicants for insurance. (6) All incidental fees charged to the insured or applicant for insurance by the insurer shall be considered premium for purposes of the premium tax imposed pursuant to section 148.320, RSMo. (7) The provisions of sections 375.052 and 379.356.2, RSMo, and this rule do not include or apply to any other fees specifically permitted by law. AUTHORITY: section 374.045, RSMo 2000.* Original rule filed July 12, 2002, effective Feb. 28, 2003. *Original authority: 374.045, RSMo 1967, amended 1993, 1995.