This 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 insured individuals, 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 insurance policy. The bill also introduces a provision stating that if a property or casualty agent refers a risk to a surplus lines broker, the twenty percent cap on fees does not apply.

Additionally, the bill stipulates that the fees charged must be reasonable in relation to the costs associated with underwriting, issuing, and processing the insurance policy or contract. This amendment aims to enhance transparency in the insurance fee structure while ensuring that the fees remain fair and justifiable in relation to the services provided.

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