Current through Register Vol. XLI, No. 38, September 20, 2024
Section 115-2-4 - Producer's Commission4.1. The amount of the producer of record's commission is a matter of agreement between the entity and its producer of record and established in the fee agreement. 4.2. The commission may not exceed eight percent of the earned annual premium. The earned premium will be computed on an annual basis of July 1 of each year to June 30 of the following year. The difference between the maximum of eight percent and the producer of record's commission shall be credited to the entity's account. Commission is based on premium paid by the entity for the policy year. In the event that coverage is canceled during the term of the policy, the commission will be based on premium paid for the period of time the insurance was in force. 4.3. The entity may change its producer of record and/or the amount of commission to be paid to the producer by notification to the board and submission of a new fee agreement. Commission will be paid to the producer of record annually following the end of the policy year for which the producer completed the underwriting questionnaire for the entity. Should the entity change its producer of record during a policy year, the commission for that policy year will only be paid to the producer who completed the underwriting questionnaire for the entity for that policy year.