Oklahoma Administrative Code › Title 365 - Insurance Department › Chapter 10 - Life, Accident and Health › Subchapter 5 - Minimum Standards; Contract Guidelines › Part 7 - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 365:10-5-73 - Agent or representative compensation

Current through Vol. 41,
				  No. 20, July 1, 2024
(a)
Purpose.
The purpose of this section is to establish the maximum
				  compensation allowance which may be paid in connection with credit life and
				  credit accident and health insurance.
(b) The following allowances are the maximum
				  compensation which may be paid for the sale of credit insurance in this State:
(1) in the aggregate, to all persons
				  including insurance agents or limited insurance representatives directly or
				  indirectly connected with the creditor, forty percent (40%) of the net written
				  life insurance premiums;
(2) in the
				  aggregate, to all persons, including insurance agents or limited insurance
				  representatives, directly or indirectly connected with the creditor, forty
				  percent (40%) of the net written accident and health insurance
				  premiums;
(3) in the aggregate, to
				  all persons independent of the creditor, including but not limited to general
				  agents, an amount not to exceed the lesser of:
(A) ten percent (10%) of the net written
				  credit life and credit accident and health insurance premium, or
(B) the general expense component used in the
				  calculation of the maximum rate chargeable for credit life multiplied by the
				  net written credit life and credit accident and health insurance premium;
				  and
(4) "Compensation"
				  shall include, but not be limited to, the receipt directly or indirectly or
				  reciprocally of commissions, contingent commissions, service fees, policy fees,
				  expense allowances or reimbursements, gifts, all benefits such as items of
				  merchandise, equipment, travel, conventions, vacations, rewards, bonuses,
				  trading stamps, scripts, or any other form of remuneration resulting directly
				  or indirectly from the sale of credit insurance or as an inducement to or
				  payment for sales made or volume of sales obtained. Compensation shall also
				  include any amounts or things of value received from or paid by any person
				  other than an insurer in consideration of the sale or retention of credit
				  insurance.
(5) Dividends or other
				  distributions of earnings based upon the profits derived from the sale of
				  credit life or credit accident and health insurance shall be considered
				  compensation if:
(A) such dividends or other
				  distribution of earnings are realized as the result of direct writing with an
				  insurance company or direct or indirect reinsurance cessions to reinsurance
				  companies, and
(B) such insurance
				  or reinsurance companies are controlled or owned wholly or in part by the
				  creditor receiving such dividends on earnings, and
(C) the amounts credited to the
				  creditor/shareholder or ceded to such reinsurers on behalf of the
				  creditor/shareholder exceeds seventy-five percent (75%) of the risk under any
				  credit life or credit accident and health insurance policy produced by said
				  creditor for the insurance company or ceding insurance company, or
(D) such dividends or other distributions of
				  earnings are credited to any class of stock of an insurance company or
				  insurance holding company on the basis of premiums written by a creditor, less
				  loss experience and other charges applied to such premiums, if such
				  participating stock so credited was issued after the effective date of this
				  rule amendment."