N.Y. Comp. Codes R. & Regs. tit. 11 § 187.8

Current through Register Vol. 46, No. 50, December 11, 2024

Section 187.8 - Commissions and fees or other allowances

(a) An insurer issuing group credit unemployment insurance policies may pay commissions on said business only to the insurance agent who solicits the master group policy and/or is designated the agent of record. The general agent or agent of record may not be:

(1) the policyholder or any of its employees, officers or directors;

(2) a trustee, trustees or agent or any of their employees, officers or directors, in the event that a group credit insurance policy is issued to a trustee, trustees or agent designated by two or more creditors or vendors; or

(3) the creditor or vendor member of a trust or agency or any of its employees, officers or directors.

The aforesaid general agent or agent of record may share commissions only with another agent who aids in the solicitation of the master policy but in no event, either directly or indirectly, with any of the above-enumerated parties.

(b) The agent of record and/or any agent sharing commissions for solicitation of the master policy of credit unemployment insurance, as indicated in subdivision (a) of this section, is subject to the provisions of section 114(4) and all other applicable provisions of the Insurance Law.

(c) The term fees or other allowances shall include administration fees, service fees or any other payment of a similar nature payable by an insurer to an insurance agent or to any other person, firm, association or corporation. Fees may be paid only for such services as are performed on behalf of the insurer and only in such amounts as would reflect the reasonable cost of performing such services. Fees may only be paid to such party or parties who perform the services.

(d) The amount of service fees payable for the administration of credit unemployment insurance will be considered reasonable, without additional justification, when the credit unemployment is not packaged with credit disability insurance if they do not exceed the following limits:

Single premium contracts		Per month, per $10 of monthly benefit
1.	Enrolling the debtor	$0.018
2.	Handling prepayment	.005
3.	Processing claims	.002
4.	General administration	.005
5.	Settling claims	.007
6.	Data processing service	.004

Closed-end monthly premium contracts		Per month, per $10 of monthly benefit
1.	Enrolling the debtor	$.018
2.	Processing claims	.002
3.	General administration	.015
4.	Settling claims	.007
5.	Data processing service	.004

Open-end revolving credit contracts		Per month, per $10 of monthly benefit
1.	Enrolling the debtor	$0.022
2.	Processing claims	.003
3.	General administration	.022
4.	Settling claims	.007
5.	Data processing service	.004
6.	Provide toll-free 800 telephone lines to handle questions from insured debtors	.005

When the credit unemployment insurance is offered as a package with credit disability insurance then the fee for enrolling the debtor shall be decreased by $.007 and in addition for revolving credit contracts the fee for general administration shall be reduced by $.007. The service fee derived by these schedules may be expressed as percentage of premium.

(e) Each insurer shall file with the Superintendent of Financial Services its schedule of rates of commissions, and other fees or allowances to agents and brokers pertaining to the solicitation or sale of credit insurance and of fees or allowances, exclusive of amounts payable to persons who are in the regular employ of the insurer other than as agent or broker, to any individuals, firms or corporations pertaining to the service or administration of the credit insurance. Such schedules must separate compensation for solicitation of sale from compensation for services or administration of the credit insurance. Such schedules must separate compensation for solicitation of sale from compensation for services or administration of the credit insurance. An insurer may revise such schedules from time to time, and shall file such revised schedules with the Superintendent of Financial Services. No insurer shall pay an amount of compensation other than as filed with the Superintendent of Financial Services. Fees for service or administration may be payable to a policyholder or creditor to the extent the policyholder or creditor performs such service on behalf of the insurer. Each insurer shall file or refile its schedules of compensation no later than the dates on which new premium rates are to be filed in accordance with section 187.6(e)(4) of this Part, for classes of policies to which such compensation schedules apply and shall be implemented on the same dates as such new filed premium rates are implemented.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 187.8