(1) Pursuant to 33-2-321(5) , MCA, the association shall, with the approval of the commissioner, collect a stamping fee equalling one percent of the base premium, including any monied endorsement, payable for each surplus lines insurance policy transacted by its members in the state. Such stamping fee shall be earned in full as soon as any portion of the premium payable for the underlying policy is earned. The commissioner may, by rule, reduce the percentage amount of the stamping fee whenever such reduction will not impair the association's ability to pay its expenses.

(2) Because such stamping fee does not constitute "consideration for insurance" within the meaning of 33-15-102, MCA, and thus does not constitute part of the premium for surplus lines insurance, a surplus lines insurance producer may collect such stamping fee from the insured in addition to the premium payable in consideration for the insurance contract. Nothing in this section shall operate to exclude any other assessment, membership, policy, survey, inspection, service or similar fee or charge from the definition of "premium" contained in 33-15-102, MCA.

(3) Both the base premium and the stamping fee of every policy of surplus lines insurance transacted in this state shall appear on the policy's declarations page and be clearly labelled as such. For the purposes of collecting this stamping fee only, any inspection fees or placement fees payable separately by the insured in consideration of the policy shall be excluded from calculations of the base premium. Designation of a base premium for purposes of calculating the stamping fee shall not operate to exclude from the definition of "premium" contained in 33-15-102, MCA, any assessment or membership, policy, survey, inspection, service or similar fee or charge in consideration of that surplus lines insurance policy.

(4) The association must collect a penalty from any surplus lines insurance producer who does not pay the stamping fee on each transaction within 30 days after the date on which the association bills the surplus lines insurance producer for the stamping fee. Such penalty shall equal 25 percent of the amount initially overdue on each transaction plus 1.5 percent per month of the accumulated amount overdue on each transaction.