Under Pricing, enter your new cancellation fee. Except for an auto insurance policy with assigned risk, an insurance agent or broker who anticipates paying the premium for its insured cannot order the insurer to cancel the policy if the insured does not reimburse the insurance agent or broker for the advance premium. Therefore, for this limited purpose only, an insurance agent may charge the insured a service fee as permitted and limited by § 21 (C) of the Plan. Therefore, an insurer that has received such an advance from an insurance agent or broker cannot cancel the policy for non-payment of the premium because the premium has been paid.
The Plan allows the producer to request cancellation in such circumstances, since, under the Plan, producers are required to make an immediate payment to the insurer once the insured receives payment. An insurance agent cannot charge a fee for such services, except when acting as the producer of (and only with respect to) an auto insurance policy with assigned risk and, if so, must do so in accordance with N. These service fees and any consequences that the insured might suffer from not paying such fees, must be clearly indicated to the insured (that is, when an insurer sends a notice of cancellation for non-payment of the premium and the insured remits the payment of the premium, but not the charge for payment of the premium, but not the fee for payment). late, within the 15-day grace period provided by N.
The insurer may charge late payment fees, reinstatement fees, and premium fees, provided that the insured was aware of these charges before such charges were charged. The insurer, at the request of a producer, will cancel the entire policy in accordance with the Vehicles and Traffic Act when the producer presents proof that the bank to which a check was issued, presented by the insured for payment of the premium, and that it was deposited in the producer's premium account, has been rejected by the bank in which it was deposited. Service rates related to an auto insurance policy with assigned risk may be limited by § 21 (C) of the New York Auto Insurance Plan Regulations (200). For the purposes of this opinion, the fee that an insurer charges to an insured person for the services provided in connection with the late payment of the premium, the reinstatement of the policy or the insured's premium installment plan shall be referred to as late payment charge, reinstatement charge and premium installment fee, respectively.
Regarding the fees that may be charged to an insured by a licensee other than an insurer, an insurance broker may charge the insured a fee for the services provided. In accordance with sections 3425 (a) (a) of Act No. 3426 (a) and 3426 (a) (McKinney 2000), the insurer cannot cancel the policy for non-payment, unless the insurer indicates in the cancellation notice that the policy is canceled due to payment of the premium and the late payment surcharge, in order to void the policy for such reasons.