Annual Administrative Fee
Annual Administrative Fee is defined as the charge for the expenses being associated in administering a group of employee’s benefit program. The system covers mortality and the expenditure risk charges and other expenses in the administrative share. It also offers a guaranteed benefit for death and lifetime approved income payouts. The annual charges are normally lower than that of the upfront fees and are usually considered as less important, but this is not always the case. The percentage on the annual fee can be low but just remember that the investment or contract policy can reasonably be anticipated to grow. Assuming that it grows, the case is that the amount actually paid by the individual in an annual management fee increases with it even if the percentage duty remain to be unchanged. It is also important to consider some special offers of investments. These kinds of investments usually waive the primary charge, hence, it do have an annual charge which is considerately higher.
When it comes to the annual administrative fee schedule, the said fees covers direct expenses being incurred by the society for administering peer review programs like printing, postage, telephone, supplies, travel for the annual peer review seminar, cost being associated with committee discussions and technical reviewer charges. The charge also covers a percentage on the society transparency meetings, such as utilities, rent, maintenance, equipment and so on.
Under Chapter 1, title 50 in the Department of Insurance, Section 4201.20 explains matters relating to annual fees. It was stated that every insurance business group that is licensed to write casualty and property insurance business shall pay to the director of insurance an annual fee, on or before 1st of June every year in accordance with the corresponding schedule of premiums of Illinois: The premium volume which is equal to $0 but lesser than $1 million will have a corresponding fee of $288; the premium which is equal to or greater to $1 million although lesser than $5 million, the fee will be $1,150; and the premium which is equal to or greater to $5 million but is lesser than $ 25 million, the fee will be $ 5,750.
The volume of the premium to be used to determine a particular company’s annual charge fee will be the total amount of the company’s subsequent year’s direct premium as being set forth in the exhibit of premiums and losses of the company’s annual statement in the Illinois Insurance Code. The department may notify each company licensed to write casualty and property insurance business by mail with the use of this amount as stated in its annual fee as being calculated. All annual charges that are payable will be due on or before 1st of June for the foregoing calendar year. Such annual fees will be made payable to the director or insurance.
On the other hand, according to an explanation regarding the minimum annual administrative charge fee, the administrator of the worker’s compensation with the consent and advice of the Bureau of Worker’s Compensation Board of Directors, has the permission to calculate the contributions towards the administrative cost finance support under specific sections of the revised code. The administrator establishes that in the event wherein a certain employer calculates a total premium due less than the minimum administrative fee for the corresponding reporting period, or reports no payroll, he or she shall pay out a minimum “Administrative Charge” at the rate of $50 for each 6 months or $100 dollars annually.