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)

Malpractice Damage Cap

Damage Cap Amount

State Code

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