Senate Bill 183

Chairman: Tom Knox

Committee:Insurance

House Sponsor: Howard Maxwell

Senate Sponsor: Chip Rogers

SB 183 allows insurance agents to charge and collect administrative fees for certain services when processing applications for property and casualty insurance.  These services include rewriting canceled or lapsed policies, policy reinstatement, home reinspection, receiving payments, motor vehicle reports, photographing vehicles or homes, or and other services as allows by the Commissioner. If the agent decides to collect these fees, the fees must be collected from all insureds equally. Service fees must be collected separate from premiums and disclosed in writing. The agent must also keep records of the fees charged and collected.

This bill comes to the House Floor under the Open Rule.

Chairman Knox’s Opinion of the Legislation:

This legislation is designed to address the problem of people who allow their insurance policies to lapse frequently, requiring the agent to change and renew those policies without compensation.

This legislation:

• Increases Personal Responsibility by making purchasers of auto insurance policies responsible for frequent changes in their policies.