SEC. 83-53-27. Additional compensation payable to credit life/credit disability supervising general agent; functions and duties of supervising general agents.
(1) Notwithstanding any provision in Section 83-53-25 to the contrary, an insurer may pay, in addition to the compensation authorized by Section 83-53-25, an overriding commission to a credit life/credit disability supervising general agent. A supervising general agent shall be responsible for and supervise soliciting agents and no soliciting agent under the supervision of the supervising general agent may be either directly or indirectly an employee of a supervising general agent. Furthermore, no supervising general agent shall have any monetary interest in the creditor with whom the soliciting agent is affiliated for the writing of such insurance in any way or exercise any control over such business operation either directly or indirectly. A supervising general agent is defined as an individual or entity which performs the following documented functions:
(a) Provides administrative services for insurance companies in the hiring, training and supervision of all agents under the supervising general agent's authority;
(b) Provides underwriting services on behalf of the insurance company;
(c) Audits reports submitted by the soliciting agent;
(d) Requires compliance of all statutory responsibilities of soliciting agents under the supervising general agent's authority. Any supervising general agent who has knowledge of statutory violations by soliciting agents under such agent's supervision or responsibility may be subject to disciplinary action by the Insurance Department for the activities of that soliciting agent or agency.
(2) Documentation of the above responsibilities will include the following and must be retained by the supervising general agent for three (3) years:
(a) Written records certifying compliance of all hiring, training and monthly reports verifying continuous supervision of the soliciting agents' activities;
(b) Complete records certifying underwriting review of policies and group contracts.
(3) Supervising general agents may not receive directly or indirectly any soliciting agents' commissions nor pay any portion of such overriding commission to any creditor or other agent.
SOURCES: Laws, 1986, ch. 440, Sec. 14; 1989, ch. 492, Sec. 2, eff from and after July 1, 1989.