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?
Insurance producers may charge fees in lieu of commissions 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.  Ind. Code § 27-4-1-4; Ind. Code § 27-1-15.6-22 
Yes.  A licensed producer may be compensated for placing insurance and paid as a consultant in connection with the same transaction if the producer provides the insured with a written agreement and discloses, prior to the transaction, that the producer will receive compensation for the sale of the policy and the method of compensation.  A licensed producer acting as a consultant can receive a fee only if the services are provided pursuant to a written agreement, outlining the nature of the work to be performed by the consultant and the method of compensation, and signed by the person receiving services.  A copy of the agreement must be provided to the consumer before services are performed.  Ind. Code § 27-1-15.6-22 
Yes; see disclosure guidelines
No.  A producer is not required to obtain a consultant’s license in order to provide consulting services for a fee.  Ind. Code § 27-1-15.6-23 

Malpractice Damage Cap

Damage Cap Amount

State Code

$1,250,000 total if it occurred after 1999. Providers liable for a maximum of $250,000 with the rest to be paid through state’s Patient Compensation Fund.