In surplus lines, providing for surplus lines fees and further providing for monthly reports.
Impact
If enacted, HB 2096 will modify how surplus lines insurance is regulated, specifically focusing on the fees that can be charged to consumers and the transparency surrounding those charges. It will require licensing entities to make clear disclosures regarding the service and inspection fees associated with surplus lines insurance. Moreover, surplus lines licensees will be required to provide detailed monthly reports of their activities, including the total amount of service fees charged for each policy. This could lead to improved accountability and better consumer awareness in the surplus lines market.
Summary
House Bill 2096 seeks to amend the 1921 Insurance Company Law of Pennsylvania by introducing provisions related to surplus lines fees and updating requirements for monthly reporting by surplus lines licensees. The bill allows surplus lines licensees to impose a service fee for the placement of surplus lines insurance policies, which can be in addition to any commission they receive from insurers. This fee is capped at a maximum of $150 or 4% of the policy premium, whichever is greater, and the Pennsylvania insurance commissioner has the authority to adjust these amounts as necessary, with notice to be given in the state bulletin.
Sentiment
Overall, the sentiment around HB 2096 appears to be supportive, particularly from members of the insurance industry who believe that the new provisions will reflect a more contemporary regulatory framework. The bill may enhance clarity and understanding of fees charged to consumers, which can lead to increased trust in the insurance process. However, there are concerns among consumer advocacy groups regarding the potential for increased costs for policyholders if service fees are raised or become more common.
Contention
Notable points of contention regarding this bill could arise from the balance between ensuring fair consumer fees and providing adequate service to policyholders. Critics may argue that while the bill aims to bring transparency to surplus lines fees, there is a risk that the imposition of service fees could be taken too far, leading to higher financial burdens on consumers seeking surplus lines insurance. Additionally, the industry stakeholders will need to navigate the implications of frequent changes to fee structures dictated by the commissioner, which may create instability within the market.