South Carolina Limits on Insurance Agency Convenience Fees

South Carolina Insurance Agents Fees

Can South Carolina insurance agents charge a convenience fee when their customers pay premiums using a credit card?

Yes - BUT - the maximum amount they can charge is $3.00 unless they get specific written approval for for a higher fee from the Insurance Commissioner.

Also, they must get the insured to sign a written agreement for these fees and show the fee as separate from the insurance premiums.

https://www.doi.sc.gov/DocumentCenter/View/7241/2013-11-Service-and-Policy-Fees

Compliance

We -  Simply Easier Payments - take your compliance very seriously. That means we do our best to keep current on laws and regulations in every state to do our best to never create a compliance issue for you using our service.

Can North Carolina Insurance Agents Charge a Fee fro Credit Card Payments

North Carolina Insurance Premium Payments and Credit Cards

Can an insurance agent charge a fee for accepting premium payments by credit card in North Carolina.

I believe the answer is it depends on the Merchant Contract the agent has with the Processor. If the Merchant contract shows a cost of zero for all transactions, then the agent is complying with the portion of the North Carolina Insurance Code shown here...

https://www.ncleg.net/…/BySecti…/Chapter_58/GS_58-3-145.html

§ 58-3-145. Solicitation, negotiation or payment of premiums on insurance policies.
An insurer, agent, or broker may accept payment of an insurance premium by credit card or debit card if the insurer accepting payment by credit card or debit card meets the following conditions:
(1) The insurer complies with the prohibition against unfair discrimination contained in G.S. 58-63-15(7).
(2) The insurer pays the fees charged by the credit card company or debit card issuer for the payment of premiums by credit card or debit card. (1967, c. 1245; 1979, c. 528; 1991, c. 720, s. 7; 1999-365, s. 1; 2011-215, s. 1.)

Compliance

Simply Easier Payments complies with this by having all the Merchant contracts used by its agency partners agree to zero fees and charges for the agency accepting payments by credit or debit cards.

This includes no fees for charge backs.

We take your compliance very seriously. That means we do our best to keep current on laws and regulations in every state to do our best to never create a compliance issue for you using our service.

Insurance Premium Collection in Pennsylvania

Insurance Premium Collection Certificate

Like many states, Pennsylvania has addressed collecting insurance premiums very specifically. Take a quick look at my two previous posts to see some of the details.

If you use a third party to accept ACH, Credit Cards, Debits Cards or e-checks, this specific section of the law needs to be considered.

https://www.pacode.com/secure/data/031/chapter37/s37.17.html

§ 37.17. Collection of premiums requires certificate or license.

 A person who is responsible for the collection and forwarding of premiums for insurance policies shall be deemed to be performing as an agent and shall be required to obtain a certificate and appointment from the insurance entity on whose behalf collection is being performed, or hold a license as a broker. This section does not apply to employes of agents or agencies who exclusively provide clerical support as described in the definition of agent in §  37.1 (relating to definitions). 

Money in Transit or Money at Rest

Is the third party you are using holding the funds at anytime?

If they are this is called "money at rest".

It is our opinion that once a third party holds your funds at rest they fall under this requirement in Pennsylvania to have a certificate or license.

How Do You Know

If you have your own Merchant Account with a bank or other third party for processing electronic payments, then it is our opinion the money processed is in transit, not at rest.

If you have an agreement with an payment aggregator or payment facilitator, then that third party is the actual party collecting and holding the premiums before funding your bank account. In this case it is our opinion that third party needs to be certified or license under this Pennsylvania Law.

You will have an agreement with an aggregator or payment facilitator, but that will not be a true Merchant Agreement. You need to be sure in writing.

Compliance

At Simply Easier Payments we take compliance with all State insurance laws and regulations very seriously. We spend time each year updating our understanding of these issues to be certain we never put our users at risk.


Let me now you thoughts and questions.

Premium Trust Account for Insurance Agents in Pennsylvania

Pennsylvania Insurance Premium Trust Accounts

Insurance agents in Pennsylvania are required by the Pennsylvania Insurance Code to manage premium payments in specific ways.

Here is a link to the section of the Pennsylvania Code...

https://www.pacode.com/secure/data/031/chapter37/s37.81.html

Here is what the Code says...

§ 37.81. Premium accounts.

 (a)  Insurance agents and brokers who have the express written consent of their entities to mingle premium moneys with their own funds may do so if the following exist:

   (1)  Moneys held in a fiduciary capacity are reasonably ascertainable from the books of account and records of the agents or brokers.

   (2)  Amounts due entities are equal to or less than the combined accounts receivable and current bank balances.

 (b)  An agent or broker who does not have the express consent of his entities to mingle premium moneys with his personal funds shall hold the premium moneys separate from other funds in accordance with the following:

   (1)  An agent or broker who does not make immediate remittance to his entities may not deposit premiums in office operating accounts but shall keep the moneys in a separate bank account from which disbursement may not be made other than for the payment of premiums to the entities, the return of premiums to the insured or the transfer of commissions or the withdrawal of voluntary deposits.

   (2)  Voluntary deposits in the premium account in excess of premiums collected and unpaid to entities may be made for the purpose of maintaining a minimum balance, to guarantee the adequacy of the account or for the purpose of the payment of premiums to the entities in advance of their collection. These deposits may not be withdrawn except to the extent that the remaining balance is equal to the total of net premiums collected and unpaid to entities.

   (3)  The deposit of a premium collection in a separate bank account may not be construed as a mingling by the agent or the broker of the net premium and of the commission portion of the premium. The commission portion of the premiums may be withdrawn from the separate bank account at the discretion of the agent or broker.

   (4)  The maintenance in a separate bank account of at least the net balance of premiums collected and unpaid to the entities by agents operating under the ‘‘account current system’’ shall be construed as compliance with this section and section 633.1 of the act (40 P. S. §  273.1), if the funds so held are readily ascertainable from the books of account and records of agents.

   (5)  Agents and brokers who make immediate remittance of collections to their entities need not maintain separate bank accounts for these collections. To constitute immediate remittance, payment to entities shall be in the same form as the collection was received from the insured.

   (6)  When both an operating and a premium account are maintained by agents and brokers under this section for purposes of segregating premiums collected, the premium account balance shall include funds sufficient to pay premiums collected and any amount delinquent or in dispute with the entity represented. Upon reconciliation of delinquent or disputed accounts, excess moneys remaining in the premium bank account may be withdrawn as if they had been voluntary deposits.

   (7)  An agent may deposit premiums collected from insureds in an interest bearing account when the agent is not required to make an immediate remittance to the entity of premium moneys, if the following are met:

     (i)   The moneys are not placed in an account upon which a penalty may be levied against the principal for early withdrawal.

     (ii)   The moneys are placed in an account insured by the United States Government or instruments secured by the United States government. 

Compliance

At Simply Easier Payments we take compliance with all State insurance laws and regulations very seriously. We spend time each year updating our understanding of these issues to be certain we never put our users at risk.


Let me now you thoughts and questions.

Do You Need an Agent's Licence to Accept Premium Payments in Pennsylvania

Taking Payments and Licensing

It may be strange to think about this question, but Pennsylvania is not alone in addressing this in their State Insurance Laws.

Pennsylvania addresses accepting premiums in several ways. Here is a link to one of the bulletins they have issued on this issue.

https://www.pabulletin.com/secure/data/vol43/43-45/2127.html

The important sections differentiate between in office premium payments and away from office premium payments.

Licensed producer activities:

4. Collecting premiums in person at other than a recorded place of business.

Nonlicensed clerical and CSR activities:

11. Receiving premiums at the recorded place of business where the payment is being made on a binder, endorsement or existing policy.

Compliance

At Simply Easier Payments we take compliance with all State insurance laws and regulations very seriously. We spend time each year updating our understanding of these issues to be certain we never put our users at risk.

Let me now you thoughts and questions.

Small steps...

At least they are doing something, right?

During this time of economic turmoil and record job loss, a sliver of sunlight is a day on the beach for some. I get more grateful with each passing day knowing I have a job and the ability to pay my rent each month. But I also realize that every day the number of people less fortunate than I keep piling up. So when I see the people that can make a difference taking the steps to help the ones in need, no matter how small the steps, I know there's still good and common sense in the world.

I am getting more comfortable and active with my use of Simply Easier Payments account on Twitter, and that's where I found a Wall Street Journal article posted by someone I follow. FiLife, who is in partnership with The Wall Street Journal, posted this article: "City to Allow Jobless to Pay Less on Loans".

The article is about just that, Citigroup Inc. is going to allow a certain group of their mortgage customers to pay less on their loans. Here's a quick excerpt from the article:

"Under the program, Citigroup will temporarily lower mortgage payments to an average of $500 a month for certain borrowers who have recently lost their jobs and are at least 60 days behind on their mortgage payments. Borrowers will be allowed to make the lower payments for three months. Citigroup will waive interest and penalties during this period."

Obviously there are strict guidelines as to who qualifies and terms and conditions along with the contract but doesn't it feel good to see a company, SOMEBODY, doing something to ease the burden of losing a job? Maybe it's the sentimental side of me but dang, this is pretty cool.

This so called "novel program will help just a small fraction of troubled borrowers" but chief executive of CitiMortgage Sanjiv Das "hopes it will be copied by others in the industry."

Yes, it's true, Citigroup has received billions in taxpayer funds and by no means does this clean their slate of their troubling previous years, but personally, I feel like they're at least trying.

Small steps people...small steps.

Your Album Cover

I'm sure I speak for majority of the people out there when I say "Wow, it would be so cool to be in a band!" Well, of course the truth of it all is that the majority of us will never be in a band...at least one that's worth anything to other people's ears.

So this past weekend, as I spent my time mostly indoors due to the cold and rain, I was browsing my Facebook and noticed a note one of my friends posted. It basically is a very creative way to see what your album cover could look like if you were in a band. It's just for fun so take a break and follow these steps:

Here are the rules AND MAKE SURE YOU FOLLOW IT, DON'T CHANGE IT BECAUSE IT MAY LOOK BETTER ANOTHER WAY:

1 - Go to Wikipedia. Hit “random... Read More”
or click http://en.wikipedia.org/wiki/Special:Random
The first random Wikipedia article you get is the name of your band.

2 - Go to Quotations Page and select "random quotations"
or click http://www.quotationspage.com/random.php3
The last four or five words of the very last quote on the page is the title of your first album.

3 - Go to Flickr and click on “explore the last seven days”
or click http://www.flickr.com/explore/interesting/7days
Third picture, no matter what it is, will be your album cover.

4 - Use Photoshop or similar to put it all together.

Mine came out looking a little depressing for my taste but part of the fun is the random aspect. It's pretty entertaining for a moment, and it comes out looking like a real album cover! So practice up on "Rock Band" on your game system of choice and rest assured you already have a cover for your first hit album!