Sec. 38a-42. (Formerly Sec. 38-20b). Contracts with life, accident or health insurance producers. - Connecticut Statutes

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Statutes > Connecticut > Title38a > Chap698 > Sec38a-42

      Sec. 38a-42. (Formerly Sec. 38-20b). Contracts with life, accident or health insurance producers. (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.

      (1969, P.A. 263, S. 1, 2; P.A. 96-193, S. 1, 36; P.A. 04-10, S. 1.)

      History: Sec. 38-20b transferred to Sec. 38a-42 in 1991; P.A. 96-193 substituted "producer" for "agent" and "broker", effective June 3, 1996; P.A. 04-10 made technical changes.

State Codes and Statutes

Statutes > Connecticut > Title38a > Chap698 > Sec38a-42

      Sec. 38a-42. (Formerly Sec. 38-20b). Contracts with life, accident or health insurance producers. (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.

      (1969, P.A. 263, S. 1, 2; P.A. 96-193, S. 1, 36; P.A. 04-10, S. 1.)

      History: Sec. 38-20b transferred to Sec. 38a-42 in 1991; P.A. 96-193 substituted "producer" for "agent" and "broker", effective June 3, 1996; P.A. 04-10 made technical changes.

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State Codes and Statutes

Statutes > Connecticut > Title38a > Chap698 > Sec38a-42

      Sec. 38a-42. (Formerly Sec. 38-20b). Contracts with life, accident or health insurance producers. (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.

      (1969, P.A. 263, S. 1, 2; P.A. 96-193, S. 1, 36; P.A. 04-10, S. 1.)

      History: Sec. 38-20b transferred to Sec. 38a-42 in 1991; P.A. 96-193 substituted "producer" for "agent" and "broker", effective June 3, 1996; P.A. 04-10 made technical changes.