NY| Bulletin No. 2025-08 issued by ELANY (Excess Line Association of New York) addresses the issue of policy fees paid to producers. The bulletin clarifies that “Policy Fees” listed on coverage documents are assumed to be taxable fees paid to carriers, while producer fees are not subject to tax. To avoid processing delays and potential regulatory issues, ELANY advises that all fees on coverage documents should be clearly identified.
- The organization announces that starting January 1, 2026, it will stop processing filings with “Policy Fees” that are actually non-taxable broker fees.
- For the remainder of 2025, ELANY will continue to process such filings if they clearly list these fees as broker fees on a Total Cost Form. This grace period is intended to allow brokers and carriers time to implement necessary changes in their documentation and systems.