New Jersey Changes Limits on Fees

Effective October 1, 2010, New Jersey law was amended to change the limitation on fees surplus lines producers may charge an originating broker from $50 to an amount set forth by the Commissioner of Banking and Insurance pursuant to regulation.

The New Jersey Department recently issued a bulletin is to remind surplus lines producers that the $50 fee limitation remains in effect until October 1, 2010. The Department of Banking and Insurance said it anticipates proposing rules to implement the statute as amended later this year. The Department will issue further guidance on the implementation of the statute prior to October 1, 2010 based on the content of the rulemaking to be proposed.