Section 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.Utah Admin. Code R590-146-16
Amended by Utah State Bulletin Number 2019-13, effective 6/7/2019Adopted by Utah State Bulletin Number 2024-16, effective 8/7/2024