HB 5174 Summary

• Allows insurance licensees to charge a fee for surplus lines insurance policies if the fee is reasonable, covers underwriting and other expenses unique to surplus lines, and is not included in the premium.

• Caps fees for personal lines insurance policies at the greater of $100 or 10% of the policy premium.

• Requires all fees to be non-excessive and non-discriminatory, with licensees maintaining complete documentation and evidence of fee disclosures.

• Mandates fees be fully disclosed in writing to the insured before sale and separately itemized on the policy declarations page, billing statement, or other cost documentation.

• Prohibits fees from being included as part of the policy premium in computing premium taxes.