Ala. Admin. Code r. 482-1-091-.20

Current through Register Vol. 43, No. 02, November 27, 2024

Section 482-1-091-.20 - Permitted Compensation Arrangements

No entity shall provide compensation to its agents or other producers, and no agent or producer shall receive compensation, greater than the renewal compensation payable by the replacing insurer on renewal policies or certificates if an existing policy or certificate is replaced unless benefits of the new policy or certificate are clearly and substantially greater than the benefits under the replaced policy. Insurers have the burden to determine the standards to judge whether the new policy is an improvement over the replaced policy.

Author: Reyn Norman, Associate Counsel

New Rule: June 14, 1991; effective October 1, 1991. Revised: August 16, 2000; effective January 1, 2001. Filed for codification in the Alabama Administrative Code by the Department of Insurance on January 17, 2003, pursuant to the Code of Ala. 1975, § 27-7-43. Revised: December 21, 2005; effective July 1, 2006. Filed with LRS December 21, 2005. Rule is not subject to the Alabama Administrative Procedure Act.

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-19-100, etseq.