Commission vs. Fee

Licensed producer may charge a fee on a commercial transaction in if the provisions of Indiana Code 27-1-15.6-24 are followed.

As guided by the Indiana Department of Insurance (IDOI), a licensed producer, agent, or broker may charge a fee on a commercial transaction in which he or she does not receive a commission.  The provisions of Indiana Code 27-1-15.6-24 are as follows:

IC 27-1-15.6-24Commercial property and casualty insurance

Sec. 24.

1. This section applies to commercial property and casualty insurance coverage described in Class 2 and Class 3 of IC 27-1-5-1.
2. A licensed insurance producer may charge a commercial insured a reasonable fee to reimburse the insurance producer for expenses incurred by the insurance producer at the specific request of the commercial insured, subject to the following requirements:
   1. Before incurring any expense described in this subsection, the insurance producer must provide written notice to the commercial insured stating that a fee will be charged and setting forth the:
      1. amount of the fee; or
      2. basis for calculating the fee.
   2. The amount of a fee and the basis for calculating a fee may not vary among commercial insureds.
   3. Any fee that is charged must be identified separately from premium and itemized in any bill provided to the commercial insured.
3. A licensed insurance producer may charge a commercial insured a reasonable fee for services that are provided at the request of the commercial insured in connection with a policy that provides coverage described in subsection (a) and for which the insurance producer does not receive a commission or other compensation, subject to the following requirements:
   1. Before providing services, the insurance producer must provide to the commercial insured a written description of the services to be provided and the fee for the services.
   2. Any fee that is charged must be identified separately from premium and itemized in any bill provided to the commercial insured.
4. A licensed insurance producer who acts as a consultant and provides services described in this section shall comply with the requirements of this section and section 23 of this chapter.
5. A licensed insurance producer may charge a late fee for agency billed accounts or policies that are more than thirty (30) days delinquent. A late fee may not exceed one and three quarters percent (1.75%) per month of the amount due on the due date.

​For more information, please refer to IDOI Bulletins:​

• Bulletin​ 157 “Personal Property and Casualty Fees”