 |
Virginia Administrative Code (Last Updated: January 10, 2017) |
 |
Title 14. Insurance |
|
Agency 5. State Corporation Commission, Bureau of Insurance |
|
Chapter 170. Rules Governing Minimum Standards for Medicare Supplement Policies |
Section 140. Permitted compensation arrangements
-
A. An issuer or other entity may provide 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% 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 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 issuer on renewal policies or certificates if an existing policy or certificate is replaced.
D. For purposes of this section, "compensation" includes pecuniary or nonpecuniary remuneration of any kind relating to the sale or renewal of the policy or certificate including, but not limited to, bonuses, gifts, prizes, awards, and finders' fees.
Historical Notes
Derived from Regulation 35, Case No. INS920112, § 15, eff. July 30, 1992; amended, Volume 15, Issue 15, eff. April 26, 1999.