On October 4, 2013, the Massachusetts Division of Insurance issued Bulletin 2013-09 (the “Bulletin”). Pursuant to the Bulletin, it is now permissible for producers and surplus lines brokers to charge fees to policyholders in addition to receiving commissions from insurers if:
- The purpose and amount of the fee is disclosed, in writing, to the policyholder prior to the time of sale;
- The fee is not included in the policy premium, as established by the insurer issuing the policy; and
- The fee is separately itemized on the policy declarations page, billing statement, or other documentation provided to the policyholder setting forth the cost of the policy.
For a copy of the Bulletin, click here.