answersLogoWhite

0


Best Answer

Insurance Policy fees Yes, most insurance contracts have a state approved associated policy fee and in the USA several other government mandated fees and taxes imposed by law that the insuring company must collect for your state.

State mandated fees include state run vehicle anti theft programs, various fire prevention funds, storm preparedness, youth fire hazard education programs carried out in schools and more. Most states have various fees that are required on every insurance policy issued in the state.

You can always refuse to pay the associated fees. but of course, since most of them are required by law, it won't do much good because the company would simply have to decline your application for coverage. It would be illegal for the insurance company not to collect fees that are mandated by law.

Every Insurance Company in the USA is required by law to provide full disclosure of all fees and taxes. They are always disclosed as required by law in every US State and are not additional to the price quoted. The price the company quotes you already has any and all fees included so they are not added at some other time. If the Insurance company chose not to assign the policy fee, then those production costs would have to be factored into the per unit of coverage cost which would result in a higher premium for individuals.

Unfortunately, yes they can. However, you can change ins. companies and ask prior that you get an agreement in writing stating all charges and clearly indicates there will never be any "add-on" charges at a later date such as a policy fee.

The insurance rate (the cost per unit of insurance) translates to a premium by multiplying that rate times the number of units purchased (for example, per $100 of coverage). In most states and for most types of insurance, the insurance regulator is required to approve the insurance rate to ensure that it is adequate (to compensate it for the risk assumed) and neither excessive, inadequate, nor unfairly discriminatory. A policy fee proposed to be charged by the insurer will be reviewed by the regulator to make sure that it is reasonable and does not violate the excessive, inadequate, or unfairly discriminatory rule.

User Avatar

Wiki User

โˆ™ 2015-07-15 20:43:59
This answer is:
User Avatar
Study guides

Nutrition

22 cards

If you were laid off and apply for insurance coverage on your wife's group policy do you have to answer a medical questionnaire

How many grams of cholesterol should you eat each day to maintain a healthy diet

What would cause a fluttering inside the ear canal

Why is beef fat a solid at room temperature

โžก๏ธ
See all cards
4.75
โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…
4 Reviews

Add your answer:

Earn +20 pts
Q: Can insurance companies charge a 'policy fee'?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Can an insurance agent charge a policy fee in addition to the policy fee charged by the wholesaler?

no


How many days do you have to cancel an auto insurance contract?

Many companies will only charge you for the exact number of days that an auto policy is active. Others will charge you a cancellation fee.


Can a insurance company charge a change in policy fee every time you add or drop a vehicle?

If you change vehicles on your policy it will create a difference in insurance premium. You will receive a bill or a refund for the difference in the premium. There is no policy fee just the premium change.


What are the fees to cancel an auto insurance policy within 24 hours of signing in the state of California?

Some companies will charge you a 10% fee for early cancellation, I would check with them for clarification.


Do rental car companies charge for spouse?

Some companies will charge you for listing extra drivers. In general, all rental companies charge for the 2nd driver or spouse. As the renter, you receive no additional benefit from this fee. If you have another car with insurance, it's very likely that your own insurance policy will cover both you and your spouse without purchasing extra insurance or additional driver coverage from the rental company. *Check with your own insurance company to be certain


Does your insurance provide some form of truck towing?

This depends on what insurance company and what policy you have. Not all insurance companies include towing on their policy. Many times, you will have to pay for this service for an additional fee each month/year.


Can an insurance producer charge a fee Massachusetts?

An actual insurance producer can NOT charge a fee for assisting in the purchase of insurance. The only way that a fee may be assessed is if the insurance producer is actually a CFP and providing a "fee based" service.Insurance producers are compensated directly by the insurance company who's product they sell.


Will your insurance be less when your SR22 is completed?

Some charge a fee for SR22 but it is never much. The companies that offer an sr22 filing with your auto insurance policy will also sell you auto insurance without the filing. Your rate has little to do with the need for an sr22, however the violation that led to the sr22 requirement can effect your rates.


How does the insurance company calculate the amount of premium to refund when a policy is cancelled?

Insurance premiums are calculated for the year. If you cancel your policy refunds are usually issued retroactively. So if you cancel your insurance 6 months into your policy, you wil be refunded for the remaining 6 months. It is usually calculated to a daily value, so you will get a refund for the remaining days left in the year. However, it is up to the insurance compant on what their refund policy is. Some companies will have a cancelation policy of 1 months cost of insurance if you cancel your policy. Most companies however have no fee.


Does Alamo rent a car charge for spouse?

In general, all rental companies charge for the 2nd driver or spouse. As the renter, you receive no additional benefit from this fee. If you have another car with insurance, it's very likely that your own insurance policy will cover both you and your spouse without purchasing extra insurance or additional driver coverage from the rental company. *Check with your own insurance company to be certain.


Can the insurance company charge you to cancel your insurance?

Yes! They can charge you a cancellation fee that is either a flat rate or is a percentage of your total annual premium calculated based on when you cancel. Lots of insurance companies do this although some only charge you to cancel within the first year


Do US companies offer travel insurance to Canadians?

It depends if you have a US citizenship. If you do not then they will charge you an international fee of About $50. It takes a while to get your citizenship though.

People also asked