Rule 20:06:21:71 Permitted compensation arrangements.
20:06:21:71. Permitted compensation arrangements. No
insurer or other entity may provide commission or other compensation greater
than the renewal compensation, to a producer or other representative, for the
sale of a long-term care insurance policy or certificate which replaces an
existing long-term care insurance policy or certificate, unless the replacing
policy contains clearly and substantially greater benefits than the replaced
policy provided. 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 a reasonable number of renewal years.
Unless prohibited in this section or
§ 20:06:21:53.03, the first year commission or other compensation provided
may be greater than the renewal commission.
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.
28 SDR 157, effective May 19, 2002.
Authority: SDCL 58-17B-4.
Implemented: SDCL 58-17B-4.
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