Insurance Agency Fees in Tennessee

Tennessee and What Are Services Associated with an Insurance Policy

The Tennessee law regarding fees an insurance agent can charge an insured brings up the most common issue related to agents charging fees.

Here is a link to a Bulletin from 1998...

https://www.tn.gov/content/dam/tn/commerce/documents/insurance/bulletins/1-08-98.pdf

The issues revolve around what are services that the insured should expect to be included in the premium?

Here is the text of the Bulletin

"“A fee which is not connected with the sale, solicitation, or negotiation of a policy of insurance, and which therefore, would not be included in the term “rate”, may be charged by an agent. Some factors which may be useful in analyzing whether a fee is connected with the sale, solicitation, or negotiation of a policy of insurance are:

1 – Whether the services performed by the agent are associate with the sale, underwriting, issuance, or servicing of a policy of insurance;

2 – Whether compensation is dependent upon the purchase of a policy of insurance;

3 – The date of payment of the fee in relation to the date a policy of insurance was issued.

Although these factors are provided for guidance, the department will continue to review each transaction on a case-by-case basis."

What do you think should be included in normal policy services?