Utah Admin. Code R590-146-16 - Permitted Compensation Arrangements
(1) An issuer or other entity may provide
commission or other compensation to a producer or other representative for the
sale of a policy or certificate only if the first-year commission or other
first-year compensation is no more than 200% of the commission or other
compensation paid for selling or servicing the policy or certificate in the
second year.
(2) The commission or
other compensation provided in subsequent renewal years shall be the same as
that provided in the second year and shall be provided for at least five
renewal years.
(3) An issuer or
other entity may not provide compensation to its producers, and a producer may
not receive, compensation greater than the renewal compensation payable by the
replacing issuer on a renewal policy or certificate if an existing policy or
certificate is replaced.
(4) An
issuer may not create a disincentive to sell a policy during the open
enrollment period by establishing compensation arrangements that result in a
producer receiving substantially lower or no compensation for policies sold
during open enrollment.
(5) For
purposes of this section, compensation includes pecuniary or non-pecuniary
remuneration of any kind relating to the sale or renewal of a policy or
certificate including a bonus, gift, prize, award, or finder's fee.
Notes
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