Section 3.28.501. Permitted compensation arrangements.

	(a)  An issuer or other entity may provide a commission or other compensation to an agent or other representative for the sale of a medicare supplement policy or certificate only if the first-year commission or other first-year compensation is no more than 200 percent of the commission or other compensation paid for selling or servicing the policy or certificate in the second year or period.  
	(b)  The commission or other compensation provided in subsequent (renewal) years must be the same as that provided in the second year or period and must be provided for no fewer than five renewal years.  
	(c)  No issuer or other entity may provide compensation to its agents or other producers, and no agent or producer may receive compensation greater than the renewal compensation payable by the replacing issuer on renewal policies or certificates if an existing policy or certificate is replaced.  
	(d)  For purposes of this section, "compensation" includes pecuniary or non-pecuniary remuneration of any kind relating to the sale or renewal of the policy or certificate, including bonuses, gifts, prizes, awards, and finders fees.  

Authorities

21.06.090;21.42.130;21.96.060;01.05.031;21.89.060;44.62.125

Notes

Authority

AS 21.06.090 AS 21.42.130 AS 21.96.060 Editor's note: In 2010 the revisor of statutes, acting under AS 01.05.031, renumbered former AS 21.89.060 as AS 21.96.060. As of Register 196 (January 2011), the regulations attorney made a conforming technical revision under AS 44.62.125(b)(6), to the authority citation that follows 3 AAC 28.501, so that the citation to former AS 21.89.060 now refers to the renumbered statute, AS 21.96.060.

History

Eff. 8/8/90, Register 115; am 7/1/92, Register 122

References

3.28.501