New Bill Allows Brokers to Charge Fees
On Tuesday, May 2, 2017, Governor Doug Ducey signed into law HB 2279, which relates to fees brokers may charge for services.
HB 2279 (Chapter 251) amends ARS §20-465 (Fees; insurance producers; definition), which regulates fees that are not included in a premium. As introduced, the bill was limited to property and casualty brokers. It was amended, however, to apply to a broader range of brokers, including health insurance.
The bill allows insurance producers to charge a fee or service charge in connection with an insurance transaction if:
- The fee or service charge and the specific services for which it is charged are disclosed and agreed to in writing by the insured; and
- The amount of the fee or service charge is reasonably related to the cost of the service rendered and does not duplicate or increase any fee or service charge included in the insurer’s rate filing
Producers are prohibited from charging fees in connection with life, annuity, long-term care or Medicare supplement insurance. In addition, this does not apply to insurance producers transacting commercial insurance, the definition of which can be found in the text of the bill, which can be viewed here.
HB 2279 will go into effect on Wednesday, August 9, 2017.
If you have any questions please contact your Business Development Executive.