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NJ Broker Fee Regulation
Posted: Thu Sep 17, 2015 1:08 pm
by InsureTime
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!
Re: NJ Broker Fee Regulation
Posted: Fri Sep 18, 2015 10:57 am
by NYagent301
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.