Wyoming Administrative Code › Agency 044 - Insurance Dept › Sub-Agency 0002 - General Agency, Board or Commission Rules › Chapter 52 - CREDIT LIFE AND DISABILITY INSURANCE › Section 52-10 - Experience Dividends, Experience Refunds and Commissions

Current through July 13, 2024
No experience dividend or refund shall be paid to any agent
				  of the insurer, directly or indirectly, in lieu of or in addition to a lawful
				  agent's commission. Nothing herein shall prohibit the payment of an experience
				  dividend or refund to persons from whom premium is ultimately derived in
				  accordance with
				  W.S.
				  26-13-111, W.S. W.S.
				  W.S.
				  26-17-124 and W.S. W.S.
				  W.S.
				  26-19-105.
No insurer shall pay compensation, either directly or
				  indirectly, in excess of thirty percent (30%) of the net written prima facie
				  premium to any creditor agent, nor in excess of seven and one-half percent (7
				  V2%) of the net written prima facie premium to any general agent. Prima facie
				  premium means premium using the premium rates set forth in Section 6 of this
				  regulation or actuarially consistent premium rates for plans not described in
				  Section 6.
Compensation, as used in this regulation, means any valuable
				  consideration, in whatever form, direct or indirect, paid by or on behalf of
				  any insurer or any person to any other person directly or indirectly
				  benefitting a creditor, creditor agent or general agent as a result of or
				  having any connection to any credit transaction excluding dividends or the
				  share of profits earned by any person other than the creditor or general agent
				  of an insurer on account of that person's ownership interest in an insurer
				  which has assumed any credit life or disability risks from another insurer
				  pursuant to a reinsurance agreement.
In order to assist in the enforcement of this rule, any
				  licensed agent and an officer of any insurer writing credit life or credit
				  disability insurance in this state shall on January 1, 1990, and on the same
				  date of each year thereafter, file with the Commissioner a notarized affidavit
				  stating whether or not the insurer or agent has paid or received compensation
				  in excess of the limits set forth herein.
In the event the rates charged by an insurer are higher than
				  the rates specified in Section 6 of these rules, the aggregate monetary amount
				  of all compensation to any person shall not exceed that which would have been
				  payable had the rates set forth in said Section 6 been charged.
In all cases where an insurer has assumed credit life and
				  disability risks from another insurer pursuant to a reinsurance
				  agreement:
(a) The offer or grant by
				an insurer to a creditor of any special favor or advantage not set out in the
				insurance contract other than the payment of agents' commissions is
				prohibited.
(b) No insurer shall
				reinsure any Wyoming risks with any insurer who is not authorized to transact
				insurance in one or more states and having surplus to policyholders in an
				amount not less than the paid in capital stock and surplus required under W.S.
				W.S. W.S.
				26-3-108.
(c) In addition to the statistical experience
				data required in the annual report, each insurer shall submit complete copies
				of all reinsurance treaties or contracts covering Wyoming risks as well as
				information showing how much reinsurance is in force on each Wyoming risk and
				in what company.