NJ Broker Fee Regulation

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InsureTime
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Joined: Tue Sep 28, 2010 8:49 am

NJ Broker Fee Regulation

Post by InsureTime » Thu Sep 17, 2015 1:08 pm

Can anyone advise if there are limits in New Jersey on the broker fees charged for selling commercial surplus lines P&C policies by a retail agent selling through a surplus lines broker.

Thanks!

NYagent301
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Joined: Fri Aug 17, 2007 11:31 am

Re: NJ Broker Fee Regulation

Post by NYagent301 » Fri Sep 18, 2015 10:57 am

Insurance producers selling, soliciting or negotiating commercial lines insurance may charge and receive fees for services rendered to an insured or prospective insured. This is now true regardless of whether the producer is acting as an agent of an insurance company. Formerly, fees could not be charged when acting as an agent. In 2008, the New Jersey Department of Banking and Insurance relaxed its policy in this regard (Bulletin 08-12) and subsequently (April 2009) the DOBI adopted changes to its Chapter 17B regulation permitting service fees to be charged for commercial lines when acting as an agent.

Unlike personal lines, commercial lines are not limited as to amount. However, fees must bear a reasonable relationship to the services you provide and not be discriminatory.

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