Commission Alternatives - Fees and Requirements

Charge fee in addition to or in lieu of collecting commissions?
Specific Disclosures or written agreements required to charge fees to a client?
Admin fees for insurance placement?
Charges for services unrelated to the placement of insurance?
Additional licensing required?
Yes provided that each fee is separately disclosed on the invoice or billing statement delivered to the insured and the aggregate sum of the fees and all producer's commissions or other compensation does not exceed 20% of the total gross premium charged for the insurance policy (23-66-310)
Disclosure must be made to the customer showing the source(s) of compensation for the placement of
insurance and any or all volume compensation amounts (an estimate of this must be provided upon customer request) (23-64-520) (23-66-310)
No (23-66-310, (d)(1)(C))
Yes within written agreement; must disclose the commission earned and declare this fee unrelated to the compensation received for placement of insurance. (23-66-310)
No (23-34-207) Consultants may charge reasonable fees for consulting services (Dept bulletin 4-90 4/27/90)

Stop-Loss Information

Employer Size
Specific Stop Loss Restrictions
Aggregate Stop Loss Restrictions
Guaranteed Issue of Stop-Loss Policies
Other notes
All employers
Prohibits specific deductible limits below $20,000
For employers with 50 or fewer covered employees, prohibits aggregate coverage attachment points of less than $4,000 per member, 120% of expected claims or $20,000, whichever is greater.
For employers with more than 50 covered employees, prohibits aggregate coverage attachment points of lower than 110% of expected claims.

Requires stop-loss applications to disclose that purchase of stop-loss insurance does not relieve employer of all risks and that it does not make the stop-loss carrier a fiduciary.

Prohibits direct payment to covered individuals

Malpractice Damage Cap

Damage Cap Amount

State Code

Constitutional provision prohibiting caps ($500,000 cap put on the 2018 ballot).