The bill amends the Arkansas Insurance Code to clarify the regulations surrounding fees charged by licensed property or casualty agents, brokers, and surplus lines brokers. Specifically, it allows these brokers to charge additional fees to the insured, provided that these fees are separately disclosed on invoices and do not exceed a total of twenty percent of the gross premium charged for the policy. Notably, the bill removes the requirement for brokers to be "duly" licensed and expands the definition to include surplus lines brokers.

Additionally, the bill introduces a provision stating that if a property or casualty agent or broker refers a risk to a surplus lines broker, the twenty percent cap on fees does not apply. It also mandates that the fees charged must be reasonable in relation to the costs associated with underwriting, issuing, and processing the insurance policy or contract. These changes aim to enhance transparency and ensure fair practices within the insurance industry in Arkansas.

Statutes affected:
SB 76: 23-66-310(c)
Act 23: 23-66-310(c)