26.1-26-04.1. Fees for services - Rules

26.1-26-04.1. Fees for services - Rules

1. Notwithstanding any other provision of this title, an insurance producer may charge a

fee for any services rendered in connection with the sale, solicitation, negotiation,

placement, or servicing of an insurance contract, if the following conditions are met:

a. The fees may not be charged on a personal lines account, such as personal

homeowners and automobile, personal life, and health insurance.

b. Before rendering the services and accepting any payment, a written disclosure

must be provided to the party to be charged on a form approved by the

commissioner disclosing:

(1) The nature of the services for which the fees will be charged along with a

separate itemization of the amount of the fees;

(2) That the fees are charged in addition to any premiums paid;

(3) That if the insurance producer is also an appointed agent of an insurer with

which coverage is being considered for placement, a statement that the

insurance producer also represents the insurer in the transaction and owes

a duty of loyalty to the insurer; and

(4) That if the insurance producer is to receive a commission from the sale of

an insurance policy related to the services rendered, a statement clearly and

completely disclosing that the:

(a) Insurance producer will receive a commission from the insurer which

is paid from the premiums owed for the insurance; and

(b) Amount of commission received by the insurance producer may differ

depending on the product sold and the insurer.

c. The disclosure required by this section must be signed and dated by both the

producer and the party to be charged.

d. The producer shall retain the signed disclosure required by this section for not

less than five years following the completion of the service. A copy of the signed

disclosure must be available to the commissioner for inspection upon request.

e. The insurance producer may not pay or return, or offer to pay or return, all or part

of a fee charged as an inducement to purchase a specific policy, or coverage

within a policy, or coverage from a particular insurer.

f. Any fee charged under this section must bear a reasonable relationship to the

services provided and may not be discriminatory.

2. An insurance producer charging a fee for services rendered for risk management

services under this section owes the person to be charged a higher standard of care

than the ordinary standard of care otherwise owed by an insurance producer to fully

advise the party to be charged as to the party's insurance needs, including the duty to

inform the person to be charged as to a potential source of risk and to recommend, if

available, insurance coverage for that risk.

3. An insurance producer may charge an individual, for personal or commercial lines, a

fee for paying agency-billed premiums and fees by credit card or other electronic

means, if the fee is disclosed to the client in writing and agreed to by the client in

writing.

4. Subdivisions b through d of subsection 1 do not apply to a large commercial risk as

defined in section 26.1-25-02.1.

5. The commissioner may adopt rules determined necessary by the commissioner for the

administration of this section.