3 Colo. Code Regs. § 702-1-2-9-5

Current through Register Vol. 47, No. 22, November 25, 2024

Section 3 CCR 702-1-2-9-5 - Prohibited Fees

A. General.

1. Agreements between the insurer and insurance producers must include a commission schedule which lists the producer's compensation for soliciting and acquiring insurance business.

2. Insurers subsequently include these commissions and/or other acquisition expenses in their comprehensive rate filings and must justify these expenses.

3. If insurance producers charge a separate fee in addition to those included as commissions in the insurers' rate filings, the premiums could be considered excessive.

B. Insurance producers are prohibited from charging separate fees in addition to those contemplated in the rate filing and included in their commissions for the solicitation and procurement of insurance products or for servicing existing insurance policies. These services may include, but are not limited to:

1. Inspections;

2. Quoting premiums;

3. Issuing or signing policies;

4. Examining and mailing policies, applications and daily reports;

5. Compiling figures for accounts current and mailing billing notices;

6. Correspondence and other bookkeeping and clerical work;

7. Issuing certificates of insurance and endorsements;

8. Issuing proof of insurance cards and notices (SR-22's);

9. Making copies of insurance documents; and

10. Taking loss information.

C. Insurance producers are also prohibited from charging fees for purchasing new computer equipment, extending business hours, adding new sales facilities, or other overhead expenses associated with the solicitation or procurement of insurance products or the servicing of existing insurance policies.

D. Insurance producers may not condition the placement of insurance upon the provision of other services for which fees may be charged.

E. The prohibitions in this Section 5 shall not apply to insurance wholesale intermediaries.

3 CCR 702-1-2-9-5

37 CR 11, June 10, 2014, effective 6/30/2014

37 CR 11, June 10, 2014, effective 7/1/2014

38 CR 09, May 10, 2015, effective 6/1/2015

38 CR 20, October 25, 2015, effective 11/15/2015

40 CR 19, October 10, 2017, effective 11/1/2017

40 CR 21, November 10, 2017, effective 12/1/2017

40 CR 21, November 10, 2017, effective 1/1/2018

41 CR 21, November 10, 2018, effective 12/1/2018

43 CR 21, November 10, 2020, effective 12/1/2020

45 CR 21, November 10, 2022, effective 11/30/2022