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?
A producer licensed as a counselor may charge a fee in addition to or in lieu of a commission for insurance placement, provided such compensation is contemplated in the premium/charge for insurance filed with and approved by the commissioner and/or included in the policy.  A producer licensed as a counselor may charge a fee for providing advice relating to a transaction for which the producer is receiving a commission.  A licensed producer may receive a commission for a transaction and charge a fee for ancillary services provided as a counselor (such as risk identification, loss measurement, and negotiation with insurers regarding coverages, costs, and payment options).  Ga. Code Ann. § 33-6-5; Ga. Code Ann. § 33-23-1; Ga. Code Ann. § 33-23-4; Ga. Code Ann. § 33-23-46.
A producer licensed as a counselor who receives compensation from a client may not receive compensation from an insurer or other third party for placement of insurance unless, prior to the purchase of insurance, the producer has obtained the client’s consent and disclosed the amount of compensation to be received from the insurer/third party.  Ga. Code Ann. § 33-23-46.  Fees for ancillary services must be disclosed in writing and approved in advance by the insured.  Ga. Code Ann. § 33-23-1. 
An insurance producer who is not licensed as a counselor, as defined in this chapter, may not accept or receive any compensation from the customer for placement of insurance.  Ga. Code Ann. § 33-23-46.
Counselors must be licensed. Must have five years experience as agent, subagent, adjuster or in some other area of the insurance business and must pass an examination.  Ga. Code Ann. § 33-23-5. 

Stop-Loss Information

Employer Size
Specific Stop Loss Restrictions
Aggregate Stop Loss Restrictions
Guaranteed Issue of Stop-Loss Policies
Other notes
Rule 120-2-50-.05
All Multiple Employer Self-Insured Plans (MEWAs)

MEWAs are required to find benefits up to the point at which the excess stop-loss insurer assumes 100 percent of the liability to pay benefits.

The Commissioner will closely scrutinize the agreement to determine whether the levels of individual and aggregate risk retained by the plan.

Malpractice Damage Cap

Damage Cap Amount

State Code

Cap was found unconstitutional (previously  $350,000 per defendant, $1,050,000 max per claim. ruled unconstitutional in Atlanta Oculoplastic Surgery, P.C. v. Nestlehutt, 2010).