20-465

20-465. Fees; deposits

A. An insurer and insurance producer shall not charge or receive any fee or service
charge in addition to the premium charged for services customarily provided in the
transaction of insurance for motor vehicle insurance policies that insure six or fewer
motor vehicles.

B. An insurer and insurance producer may charge and receive a fee for services not
customarily provided in the transaction of insurance if the fee is filed with the
director and the following conditions exist:

1. The services performed by the insurer or insurance producer are in excess of
those normally performed for insureds.

2. The service charge and the specific services for which the charge is made are
disclosed and agreed to in writing by the insured on a form that is approved by the
director.

3. The amount of the service charge is reasonably related to the cost of the
service performed.

C. After notice and a hearing, the director shall prescribe the services that are
customarily provided in the transaction of insurance.

D. If after an examination and a hearing the director determines that an insurer or
insurance producer has violated subsection A of this section, the director may order the
insurer or insurance producer to refund the fee or that part of the fee that the director
determines was excessive and may impose civil penalties as set forth in section
20-456. The insurer or insurance producer shall pay the costs of the examination from
monies deposited with the director pursuant to section 20-159 regardless of the findings
of the examination.

E. Nothing in this section prohibits fees, including membership fees charged by a
reciprocal or mutual insurer, if the fees are filed with the director and are included by
an insurer in supplemental rate information.