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. Agents may charge fees in lieu of or in addition to commissions for placement of commercial lines policies; however, they may not charge fees for certain policy-related services in connection with specified personal lines policies. Ohio Rev. Code Ann. § 3905.55. In addition to the disclosure: (i) fees cannot be calculated as part of the premium; (ii) fees cannot be used as a means to rebate; (iii) the fee and the consumer’s obligation to pay cannot be conditioned upon occurrence of a future event; and (iv) the agent must comply with non-discrimination requirements.  Ohio Rev. Code Ann. § 3905.55.
Yes.  Fees must be disclosed separately from premium and agreed to by the policyholder (Ohio law does not specify that the agreement be in writing).  An agent may charge a fee for services in connection with a policy issued on a no-commission basis if the agent provides prior disclosure of the fees and services to be provided.  Agents must disclose (i) the fee is being charged by the agent, not the insurer, (ii) there is no government or insurance company requirement that the agent charge the fee, and (iii) the fee is not refundable.  Ohio Rev. Code Ann. § 3905.55
See regs under charging fees in lieu of commissions
See regs under charging fees in lieu of commissions

Malpractice Damage Cap

Damage Cap Amount

State Code

Non-economic: $250,000 or three times the plaintiff’s economic damages — with an overall maximum of $350,000 per plaintiff or $500,000 for each case (if there is more than one plaintiff). No cap on economic damages or wrongful death suits.