3 AAC 23.620 - Earning of commissions
(a) A licensee who receives money in a
fiduciary capacity, part of which consists of commissions due the licensee, may
remove commission amounts from money held in a fiduciary capacity only after
they are earned.
(b) Unless a
contract between the licensee and the insurer provides for a commission to be
earned at a different time, a commission is earned no earlier than the date on
which the licensee receives the money and the insurance coverage is bound. On
or after that date, the licensee may remove the commission amounts from
fiduciary care.
(c) Commission
amounts that are removed from money held in a fiduciary capacity must be
documented as to
(1) the specific calculation
of the appropriate commission amount; and
(2) the date on which the amount calculated
was considered commission.
(d) Premium refunds paid to an insured must
include a ratable amount of commission, originally collected by the licensee,
and refunded to the insured if a contract of insurance is terminated
early.
(e) This section does not
establish a generally accepted accounting principal for the purpose of the
preparation of a financial statement of a licensee.
(f) Failure to comply with (a), (b), (c), or
(d) of this section is a violation of
AS
21.27.360.
(g) For purposes of this section, "ratable"
means a proportionate part of premium.
Notes
Authority:AS 21.06.090
AS 21.27.360
AS 21.36.220
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