Section 3 AAC 26.885 - Payment plans and other fees(a) Fees associated with premium payment transactions, including late payment fees, insufficient funds fees, installment fees, and convenience fees, are allowable subject to the following requirements, regardless of whether the fees are associated with payments made under a payment plan: (1) fees must be reasonably related to the cost of providing the service to the applicable policyholders, may not be applied in a way that results in arbitrary or unfair discrimination, and may not duplicate costs already reflected in rates;(2) for types of insurance subject to AS 21.39.040, fees may not be charged until they have been filed in accordance with the rate filing requirements; (3) rate fiHngs made in accordance with (2) of this subsection must include documentation to demonstrate compliance with (1) of this subsection;(4) rate filings not specifically related to the fees described in this subsection must clearly account for fees that the insurer has collected within the experience period covered by the expense information required to be included in support of the rate by 3 A AC 31.230(2) or 3 AAC 31.235; and(5) this subsection does not apply to cancellation fees.(b) A policyholder's choice of payment plan or payment method may not affect premiums unless the applicable rates and rules have been filed in accordance with the rate filing requirements in AS 21.39.040, 3 AAC 31.235, or 3 AAC 28.472(b) and the rate filing includes documentation sufficient to demonstrate that the differences in premiums comply with 3 AAC 29.250(c), 3 AAC 31.235, or 3 AAC 28.472(b).(c) A payment plan must allow for a policyholder to pay the remainder of the policyholder's outstanding premium at any time without incurring additional fees.(d) A payment plan is not required to be filed if it does not have fees associated with it, except as required elsewhere in AS 21 or 3 AAC 21 - 3 AAC 31.Eff. 12/20/2020, Register 236, January 2021Authority:AS 21.06.090
AS 21.36.090
AS 21.36.120