What Does the North Carolina Department of Insurance Require If I Charge Fees In My Agency?

Many insurance agencies in North Carolina charge fees for various transactions such as: payment, policy, cancellation or reinstatements. According to the North Carolina Statutory Authority G.S. 58-2-40; 58-2-195; 58-33-85(b); Effective February 1, 1993; Amended Effective February 1, 1996 the following are the items your agency must perform to be in compliance.

First, you should have a visible sign in large, bold print for your clients to see.  On this sign, you should display the type of fee and the amount that will be charged.  Make sure this is placed in an area of the lobby that can be viewed by everyone.

Second, you will need to have the client sign a separate form each time a policy or service fee is charged. On this form, you will need to have the date, amount of the fee charged, signature for the client, signature for the agent, and the form should be titled “Policy or Service Fee Consent”.

Third, as stated above, you must have the date of the receipt – this receipt must be issued separately from the policy premium receipt or have a separate line item on the policy receipt. My recommendation is to have a separate receipt to alleviate any confusion.

On a final note, when making a line item on the receipt for the particular fee make sure you put a description of the fee and the associated price.  For more detail on this topic, please review the current statue and feel free to contact the North Carolina Department of Insurance at www.ncdoi.com.

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