AI-assisted research summary: A life insurance company in this state may not pay contingent compensation to certain officers, actuaries, or physicians, except for an approved marketing compensation plan that meets stated conditions.
Sec. 841.260. PROHIBITED COMMISSIONS. (a) In this section, "contingent compensation" means a commission or other compensation an insurance company pays to a person that is contingent on: (1) the writing or procurement of an insurance policy in the company; (2) the procurement of an application for an insurance policy in the company; (3) the payment of a renewal premium; or (4) the assumption of an insurance risk by the company. (b) A life insurance company that engages in the business of insurance in this state may not, directly or indirectly, pay or contract to pay a contingent compensation to: (1) the president, vice president, secretary, or treasurer of the company; (2) any other officer of the company, other than an agent or solicitor; (3) an actuary of the company; or (4) a medical director or other physician of the company whose duty is to examine risks or applications for insurance for the company. (c) This section does not prohibit a plan of compensation to a marketing officer according to the total amount of insurance the insurance company writes or to the total amount of insurance in force with the insurance company during a specified period if: (1) the commissioner approves the plan under Subchapter A, Chapter 805; (2) the marketing officer is not responsible for underwriting, rating, or otherwise approving the acceptability of insurance risks; and (3) the plan does not compensate the marketing officer according to commissions on individual sales of any insurance product. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.