Tex.
Ins. Code Section 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 (Definitions), Chapter 805 (Directors, Officers, and Other Interested Persons);(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.
Source:
Section 841.260 — Prohibited Commissions, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.841.htm#841.260 (accessed Jun. 5, 2024).
