The Delaware Department of Insurance published a bulletin addressing the rise in the use of miscellaneous fees being added to insurance policies, and gives their position based on what is found in Delaware law.

Delaware law requires that consideration must be given to past and prospective loss experiences within the country and within the state, in accordance with actuarial principles. This is in addition to the usual requirements that rates not be excessive, inadequate, or unfairly discriminatory.

The Department states that an insurer’s operating expenses must be included as part of their filed rates. Fees may be added to a policy only for specific things like installment fees, late payments, or invalid payment methods. Administrative fees, policy fees, and issuance and inspection fees are prohitibted. Fees for optional services elected by an insured are allowed, given they are acturially justified.