Sec. 38a-42. (Formerly Sec. 38-20b). Contracts with life, accident or health insurance producers.
130 words·~1 min read·
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(a)Except as provided in subsection
(b)of this section, no insurance company shall enter into any contract of remuneration with any life or accident and health insurance producer where the initial or any renewal commission is contingent upon
(1)such contract being in effect more than two years, or
(2)any continuing premium or other volume requirement contained in such contract.
(b)Any insurance company may enter into a contract of remuneration of the kind prohibited in subsection
(a)of this section with any such insurance producer if the company has offered to such producer a contract which contains no such contingent provisions as described in subdivisions
(1)and
(2)of subsection
(a)of this section and which provides actuarially equivalent remuneration to the contract containing such contingent provisions.