N.J. Admin. Code § 11:4-23.14

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:4-23.14 - Compensation arrangements

(a) No carrier or other entity shall provide to any producer a first year commission or first year compensation for the sale of Medicare supplement policies or certificates in an amount which exceeds 200 percent of the commission or compensation to be provided by that insurer or other entity for the selling or servicing of that policy or certificate in the second year or period of that policy or certificate.

(b) The commission or other compensation which may be provided in subsequent renewal years shall be, for no fewer than five renewal years, the same as that commission or compensation provided in the second year or period.

(c) No carrier or other entity shall provide compensation or commission to any producer, nor shall any producer receive commission or other compensation greater than the renewal commission or compensation payable by the replacing carrier on renewal policies or certificates when an existing policy or certificate is replaced.

(d) For purposes of this section, "compensation" means a pecuniary or nonpecuniary remuneration of any kind relating to the sale of a policy or certificate, including, but not limited to:

1. Bonuses;

2. Gifts;

3. Prizes;

4. Awards; and

5. Finders fees.

N.J. Admin. Code § 11:4-23.14

New Rule, R.1990 d.345, effective 7/1/1991.
See: 23 New Jersey Register 1264(a), 23 New Jersey Register 2014(a).
Prior section 23.10, Severability recodified to 23.17.
Amended by R.1993 d.26, effective 1/4/1993.
See: 24 New Jersey Register 12(a), 25 New Jersey Register 141(a).
Rule on filing requirements for advertising recodified to 23.16; rule on compensation arrangements recodified from 23.10; compensation arrangement variables restricted further.
Recodified from N.J.A.C. 11:4-23.13 by R.1999 d.38, effective 12/28/1998 (to expire February 26, 1999).
See: 31 New Jersey Register 181(a).
Former N.J.A.C. 11:4-23.14, Required disclosure provisions, recodified to N.J.A.C. 11:4-23.15.
Adopted concurrent proposal, R.1999 d.100, effective 2/26/1999.
See: 31 New Jersey Register 181(a), 31 New Jersey Register 876(a).