DE| The Delaware Department of Insurance Bulletin No. 41 addresses the increasing number of property and casualty insurance carriers adding miscellaneous fees to insurance policies. The Department clarifies that, under Delaware law, insurers must include all operating expenses within the filed premium rates, and may not add separate policy, inspection, issuance, or administrative fees—only certain payment-related fees (such as late or installment fees) are allowed. Any separate fees for optional services outside the policy must be actuarially justified, and carriers have six months to bring their filings into compliance with this guidance.
Key points:
- All operating expenses must be included in the policy premium, not as separate added fees, except for payment-related fees (installments, late payments, etc.).
- Policy, inspection, issuance, administrative, and similar fees are prohibited unless they are for optional, elected services and actuarially justified.
- Carriers have six months to comply with these requirements.