| (a) An issuer or other entity designated in Insurance
Code §1652.003 may provide commission or other compensation to
an agent 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 first
renewal year, or the first 12-month service period immediately following
the initial 12-month service period of the policy in instances where
premium payment is other than on an annual basis.
(b) The commission or other compensation provided in
the second and subsequent renewal years where payment of premium is
on an annual basis, or the second and subsequent 12-month service
periods of the policy in instances where premium payment is other
than on an annual basis, must be the same as that provided in the
first renewal year, or first 12-month service period of the policy
in instances where premium payment is other than on an annual basis,
and must be provided for a reasonable number of renewal years, or
successive 12-month service periods, but not less than six years following
the inception of the first renewal year in the instance of premium
payment on an annual basis, or the 12-month service period immediately
following the initial 12-month service period of the policy in instances
where premium payment is other than on an annual basis.
(c) No issuer may provide compensation to its agents
and no agent 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 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.
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| Source Note: The provisions of this §3.3317 adopted to be effective February 14, 1990, 15 TexReg 540; amended to be effective December 1, 1990, 15 TexReg 6594; amended to be effective April 15, 1992, 17 TexReg 2238; amended to be effective January 1, 1997, 21 TexReg 10753; amended to be effective June 13, 2018, 43 TexReg 3787 |
