MD| Maryland Insurance Administration Bulletin 26-17 reaffirms that premium payment by credit card must comply with anti-discrimination and rating laws, prohibits passing separate credit-card processing fees to insureds (including via third‑party processors linked from an insurer’s site), and clarifies that only Commissioner‑approved late/instalment fees (capped at $10) may include credit‑card related costs as part of filed administrative expenses.
This Bulletin Applies to Acceptance by Insurers, Producers, and Surplus Lines Brokers of Credit Cards to Pay Insurance Premiums and the Collection of Credit Card Fees Through a Third-Party Processor
- Insurers and MAIF may include credit card processing costs only within administrative expenses for late or installment payments in filed rating plans, subject to Commissioner approval, and any related late or installment fee charged to policyholders may not exceed $10 under Insurance Article § 27‑216(b)(3).
- Credit card premium payment options must be offered uniformly to all existing and prospective insureds, without discounts favoring other payment methods, reclassification of insureds based on payment choice, collateral requirements outside premium finance rules, or separate fees solely for choosing credit card payment.
- Insurers and producers may not use third‑party payment processors (e.g., PayPal via an insurer website link) to collect additional credit card transaction fees from policyholders, because those vendors are deemed to be collecting such fees on behalf of the insurer in violation of Bulletin 17‑10 and applicable premium collection laws.