# WV Informational Letter No. 6: Excessive Charges By Agents

> West Virginia · Agency guidance · In force

URL: https://www.frixlaw.com/law-library/statutes/WV_INS_IL_6

## Section

- **Citation:** WV Informational Letter No. 6
- **Heading:** Excessive Charges By Agents
- **Jurisdiction:** West Virginia
- **Kind:** Agency guidance
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** West Virginia Offices of the Insurance Commissioner Bulletins and Informational Letters / Excessive Charges By Agents

## Text

WEST VIRGINIA INFORMATIONAL LETTER
INSURANCE COMMISSIONER
No. 6
October, 1971
EXCESSIVE CHARGES BY AGENTS
It has come to the attention of the West Virginia Insurance Department that a
number of agents are charging excessive consideration or "fees," variously described as
"administrative," "clerical," "servicing," or "placement" fees, or by other designations, in
connection with insurance transactions.
The West Virginia Code, Chapter 33, Article 1, Section 17 (1931, as amended),
defines "Premium" as the consideration for insurance, by whatever name called. By the
terms of this definition any and all charges made by an agent in the taking of an
application, the issuance of a policy, and any service rendered in connection therewith,
are "premiums."
The administrative and clerical expenses attending the production of insurance
and its servicing are normally considered by the insurer as an includable factor in
calculating the appropriate premium to be charged for a policy of insurance.
The commissions paid an agent by the insurer he represents are deemed to
constitute the entire compensation due him in connection with the solicitation,
negotiation, making, procuring, or servicing of a policy of insurance.
It is, therefore, the position of this department that the charging by an agent of any
extra consideration or fee, such as the above-enumerated, to defray expenses customarily
allocated to and included in the policy premium, amounts to an overcharge of premium
and constitutes an unfair discrimination against any insured so charged.
Any agent found to be making such charges, inasmuch as they are deemed to be
unfairly discriminatory, is engaging in an unfair trade practice, and will be subject to the
appropriate penalties of law governing that activity.
Samuel H. Weese
Insurance Commissioner

## Nearby sections

- [WV Informational Letter No. 6 Excessive Charges By Agents](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_6.md)
- [WV Informational Letter No. 10 Valued Policy Law](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_10.md)
- [WV Informational Letter No. 15 West Virginia Administrative Regulation Of Credit Life And Credit Accident And Sickness Insurance](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_15.md)
- [WV Informational Letter No. 25 Brief Summary Of Significant Insurance Legislation Enacted During The 1984 Regular Session Of The WV Legislature](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_25.md)
- [WV Informational Letter No. 32 Compulsory Motor Vehicle Liability Insurance - Statute](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_32.md)
- [WV Informational Letter No. 33 Brief Summary Of Significant Insurance Enacted During The 1985 Regular Session Of The WV Legislature](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_33.md)
- [WV Informational Letter No. 38 Brief Summary Of Significant Insurance Legislation Enacted During The 1986 Regular Session And First Extraordinary Session Of The WV Legislature](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_38.md)
- [WV Informational Letter No. 39 Cancellation Or Nonrenewal Of Automobile Liability Or Physical Damage Insurance Policies](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_39.md)
- [WV Informational Letter No. 42 Brief Summary Of Significant Insurance Legislation Enacted During The 1987 Regular Session Of The West Virginia Legislature.](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_42.md)
- [WV Informational Letter No. 43 Mass Marketed Life And Health Insurance Filing Abstracts](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_43.md)
- [WV Informational Letter No. 43SUP Senate Bill No. 487 -- Disclosure Information Concerning Mass Marketed Life And Health Insurance Filing Abstracts](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_43SUP.md)
- [WV Informational Letter No. 45B Disapproval Of Policies By Lienholders due to lack of A.M. Best Rating, §33-11-5(b)(2) of the West Virginia Code](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_45B.md)
- [WV Informational Letter No. 48 Guidelines For Video-Cassette Commercials](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_48.md)
- [WV Informational Letter No. 49 Complaints And Inquiries Concerning Agents Of The Insurer](https://www.frixlaw.com/law-library/statutes/WV_INS_IL_49.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/WV_INS_IL_6. Check the current official text before relying on it. Not legal advice.