When can surplus lines agents charge service fees?

Surplus lines agents are permitted to charge service fees specifically for certain administrative tasks, provided they notify the clients beforehand. This regulation is in place to ensure transparency and to maintain the trust relationship between the agent and the client. It also allows clients to be informed about the costs associated with the services they're receiving, promoting a clear understanding of billing practices.

By requiring prior notification, the regulation protects consumers from unexpected charges and helps them plan for the costs associated with any administrative services they might need regarding their surplus lines insurance. This approach supports ethical business practices within the industry and ensures that clients are fully aware of their financial obligations.