A. The intent of
this Regulation is to prohibit the use of a supervising general agent's license
as a means to provide additional excessive commissions to a writing agent or
creditor.
B. A bona fide
supervising general agent shall be defined as an applicant applying for a
license or a renewal thereof to permit said applicant to supervise the
activities of soliciting agents, to service said business, and not for the
purpose of obtaining an override commission on "controlled" business. For
purposes of this Regulation, controlled business is defined as credit insurance
premiums written by or for an agent or creditor in which the applicant, his
relatives, business associates, employers, employees or any of them have an
interest, either legal or beneficial.
C. Violations of the restrictions on
compensation by the applicant or by the insurance company, if found by the
Commissioner, may lead to sanctions set forth by law to be assessed against the
violating applicant or agent and/or the insurance company.
D. Bona fide agents applying for a credit
life and credit disability supervising general agent's license shall make
application for a privilege license to the Mississippi Insurance Department on
a form prescribed by the Commissioner of Insurance. Said form will include the
attachment of an affidavit appointment from each company appointing the
supervising general agent which will expire December 31 of each year. The
affidavit appointment must be renewed annually with the renewal of the
supervising general agent's privilege license. The affidavit appointment will
include the following information:
1. General
information as to the insurance company appointing the supervising general
agent; whether the agent is incorporated or unincorporated.
2. Specific functions, authority and
responsibilities granted by the insurance company to the supervising general
agent as designated in the agent's contract with the company.
3. Identification of the soliciting agent or
sub-agent who will be under the supervision of the supervising general
agent.
4. Any additional
information the Commissioner may deem necessary to determine the validity of
the privilege license.
Upon withdrawal of the affidavit appointment, said insurance
company will notify the supervising general agent that this appointment is
terminated. The supervising general agent's privilege license will be
classified invalid by the Mississippi Insurance Department unless a new
affidavit appointment is submitted by a licensed credit life and credit
disability insurance company within 30 calendar days of the effective
termination date. Said insurance company will notify the Department and
supervising general agent of this termination.
