DE| The revised Delaware Department of Insurance Forms and Rates Bulletin No. 41 provides updated guidance on what fees property and casualty insurers are permitted to add to insurance policies. Insurers are generally required to include operating expenses within policy premiums rather than charging additional fees, except for limited, specified situations. The bulletin clarifies the handling of payment transaction fees and mandates clear disclosure, prohibits unauthorized administrative fees, and requires compliance within six months for affected insurers.
Key Points
- Only limited, specified fees (installment, late payment, reissuance, certain payment transaction costs) may be charged outside of premiums, with strict conditions.
- Transaction fees must reflect only the actual cost, be disclosed in advance, and at least one no-fee payment option must be available.
- All permitted fees must be included in approved rate filings, with a six-month compliance window for carriers.