NJ Surplus Lines Producers Fees

The Department of Banking and Insurance has issued Bulletin No. 10-27 to all producers with surplus lines authority regarding recent changes to the law that limits the fees surplus lines producers may charge an originating broker.

Assembly Bill 586 (P.L. 2010, c. 42) was enacted July 6, 2010, and became effective October 1, 2010. This bill amended N.J.S.A. 17:22A-38b to change the limitation on fees surplus lines producers may charge an originating broker from $50 to an amount specified by the Commissioner of Banking and Insurance pursuant to regulation. On August 19, 2010, the Department issued Bulletin No. 10-19, which advised that the $50 fee limitation remained in effect and that the Department anticipated proposing rules to implement the statute as amended later in 2010. The Department’s efforts to develop such rules are still ongoing. Thus, until further guidance based upon the content of the rules to be proposed is provided, producers should continue to adhere to the $50 fee limitation.