376.1087. Commissions not to be contingent on savings in payment of claims--may be based on premiums collected.
Commissions not to be contingent on savings in payment of claims--maybe based on premiums collected.
376.1087. 1. An administrator shall not enter into anyagreement or understanding with an insurer in which the effect isto make the amount of the administrator's commissions, fees orcharges contingent upon savings effected in the adjustment,settlement and payment of losses covered by the insurer'sobligations. This provision shall not prohibit an administratorfrom receiving performance based compensation for providinghospital or other auditing services.
2. This section shall not prevent the compensation of anadministrator from being based on premiums or charges collectedor the number of claims paid or processed.
(L. 1993 H.B. 709 § 48)