Current through Register Vol. 63, No. 9, September 1, 2024
(1) When an
insurance consultant or an affiliate of an insurance consultant receives from a
prospective insured any compensation authorized under the Insurance Code or
rules adopted thereunder, neither the insurance consultant nor the affiliate
may accept or receive any compensation from an insurer or other third party for
services provided to the prospective insured in addition to the compensation
paid by the prospective insured unless the insurance consultant, prior to the
transaction:
(a) Has obtained the prospective
insured's documented acknowledgment that the compensation will be received by
the insurance consultant or affiliate; and
(b) Disclosed the amount of compensation from
the insurer or other third party for that placement. If the amount of
compensation is not known at the time of disclosure, the insurance consultant
shall disclose the specific method for calculating the compensation and, if
possible, a reasonable estimate of the amount.
(2) When an insurance producer or an
affiliate of an insurance producer receives any compensation otherwise
authorized under the Insurance Code or OAR
836-071-0269 to
836-071-0277 from a prospective
insured, neither the insurance producer nor the affiliate may accept or receive
any compensation from an insurer or other third party for the placement of
insurance in the same or related transaction unless the insurance producer,
prior to the prospective insured's purchase of insurance, has:
(a) Obtained the prospective insured's
documented acknowledgment that the compensation will be received by the
insurance producer or affiliate; and
(b) Disclosed the amount of compensation from
the insurer or other third party for that placement. If the amount of
compensation is not known at the time of disclosure, the insurance producer
shall disclose the specific method for calculating the compensation and, if
possible, a reasonable estimate of the amount.
(3) A person is not a prospective insured for
the purpose of this rule if the person is merely:
(a) A participant or beneficiary of an
employee benefit plan; or
(b)
Covered by a group or blanket insurance policy or group annuity contract sold,
solicited or negotiated by the insurance producer or affiliate.
(4) This rule does not apply to:
(a) An insurance producer with respect to a
transaction to which ORS
735.455,
744.091 or
744.093 applies;
(b) An insurance producer when the insurance
producer acts only as an intermediary between an insurer and the prospective
insured's insurance producer, such as a managing general agent, a wholesale
insurance producer under ORS
744.093, a surplus lines
licensee when transacting insurance with a producing insurance producer under
ORS 735.455 or a sales
manager;
(c) An insurance producer
with respect to an incidental charge that is received from the prospective
insured and is authorized under OAR
836-071-0267; or
(d) A reinsurance intermediary.
(5) As used in this rule:
(a) "Affiliate" means a person that controls,
is controlled by or is under common control with the insurance consultant or
insurance producer.
(b)
"Compensation from an insurer or other third party" means payments,
commissions, fees, awards, overrides, bonuses, contingent commissions, loans,
stock options, gifts, prizes or any other form of valuable consideration,
whether or not payable pursuant to a written agreement.
(c) "Compensation from a prospective insured"
does not include any fee or amount collected by or paid to the insurance
producer that does not exceed an amount established by the Director.
Stat. Auth.: ORS
731.244,
744.077 &
744.650
Stats. Implemented: ORS
737.205,
742.009,
744.077,
744.650,
746.015
