The Office of General Counsel issued the following opinion on February 2, 2006, representing the position of the New York State Insurance Department.

RE: Credit Card Transaction Fee

An inquirer took exception to the Insurance Department’s position that N.Y. Gen. Bus. Law § 518 prohibits the passing of credit card transaction fees on to insureds that pay their premiums by credit card. The Department submitted the question to the New York State Office of Attorney General, as the agency responsible for enforcing the General Business Law, which recently confirmed the Department’s position that credit card surcharges may not be passed on to insureds pursuant to N.Y. Gen. Bus. Law § 518. The Attorney General’s opinion may be viewed on-line at: http://www.oag.state.ny.us/lawyers/opinions/2006/formal/2006-F2.pdf.

For further information you may contact Associate Attorney Sally Geisel at the New York City Office.