N.J. Admin. Code § 11:3-46.10

Current through Register Vol. 57, No. 1, January 6, 2025

Section 11:3-46.10 - Commissions

(a) Qualified producers shall receive commissions for risks placed in the voluntary rating tier from the insurer to which the risks are distributed. Such commissions shall be equivalent to the insurer's usual commission rate for its agents or brokers, or may be a newly established commission rate for brokers placing business in the voluntary rating tier, but in no event less than nine percent. Direct writers shall pay an amount not less than nine percent. To the extent the minimum commission required pursuant to this section exceeds the insurer's commission underlying its current rates, for every two percent that the minimum commission required exceeds the commission underlying the insurer's current approved rates, the insurer may file rule pages to provide for a one percent increase in rates for business written pursuant to N.J.A.C. 11:3-46.6. In the case of a direct writer, the insurer's commission underlying its rates shall be deemed to be zero.