Insurance Agency Fees in Michigan

What Fees Can Insurance Agents Charge in Michigan

Insurance producers are not allowed to charge or pass a service fee to consumers for insurance policies sold in the admitted market.

Michigan is a non-broker state; therefore, insurance producers act as agents on behalf of their insurance companies instead of their clients.

The only exception applies to licensed surplus lines producers who may charge a fee not exceeding the statutory limit for surplus lines policies only.

Here is the link to a document on the Michigan rules...

https://www.michigan.gov/documents/difs/Market_Conduct_Agency_Audit_News_2017_560214_7.pdf

Agency Fees in Kentucky

What Fees can Kentucky Insurance Agents Charge?

Based on the information I was able to find in the Kentucky Insurance Code, there is a contradiction.

Underwriting Fees are specifically mentioned as being allowable as “related to underwriting expenses for a property or casualty insurance contract”. I assume this is reimbursement for items such as accident reports or Motor Vehicle Reports.

Here is a link to that part of the Code - http://www.lrc.ky.gov/statutes/statute.aspx?id=17088

Clearly a “Consultant” is allowed to charge fees. Here is the link http://www.lrc.ky.gov/statutes/statute.aspx?id=16929

Just as clearly, the consultant cannot accept commissions or act as the agent and also charge fees.

Finally, the “Illegal Dealing in Premiums” seems to state that only premium amounts can be collected. Here is a link to that part of the Kentucky Code - http://www.lrc.ky.gov/statutes/statute.aspx?id=17031

Based on these items I assume fees for a surcharge based on the use of a credit card for payment of premiums is not allowed to be charged by an insurance agency in Kentucky.