NY| The Excess Lines Association of New York (ELANY) issues Bulletin No. 2025-27 clarifying that New York DFS treats “policy” fees payable to excess line insurers as taxable consideration for the policy, while fees intended for MGAs, MGUs, or other licensed intermediaries should be labeled as producer or broker fees and are not subject to excess line tax, so carriers and brokers should use terminology such as broker fee or producer fee to distinguish non-insurer fees. It extends indefinitely ELANY’s current practice of accepting the Total Cost Form as sufficient documentation to re-characterize mis-labeled “policy” fees as broker fees, and ELANY will process filings listing “policy” fees for intermediaries if those charges are clearly shown as broker fees on a submitted Total Cost Form.
The bulletin reminds members that Section 2102(e)(1) prohibits accepting compensation for selling, soliciting, or negotiating insurance without the required license.