(a)For purposes of this Code section, the term:
(1)"Affiliate" means a person that controls, is controlled by, or is under common control with the producer.
(2)"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, but shall not mean de minimis gifts of less than $45.00 in value.
(3)"Compensation from the customer" shall not include:
(A)Any fee or similar expense provided in subparagraph (C) of paragraph (6) of Code Section 33-6-5 ;
(B)Any amount or fee paid by or to the producer that does not exceed an amount established by the Commissioner; or (C) A premium or fee
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(a) For purposes of this Code section, the term: (1) "Affiliate" means a person that controls, is controlled by, or is under common control with the producer. (2) "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, but shall not mean de minimis gifts of less than $45.00 in value. (3) "Compensation from the customer" shall not include: (A) Any fee or similar expense provided in subparagraph (C) of paragraph (6) of Code Section 33-6-5 ; (B) Any amount or fee paid by or to the producer that does not exceed an amount established by the Commissioner; or (C) A premium or fee billed by the producer solely on behalf of an insurer. (4) "Documented acknowledgment" means the customer's written consent obtained prior to the customer's initial purchase of insurance. In the case of a purchase over the telephone or by electronic means for which written consent cannot reasonably be obtained, consent documented by the producer shall be acceptable. (b) (1) Where any insurance producer licensed as counselor, as defined by this chapter, or any affiliate of such producer receives any compensation from or charges any other fee to the customer, neither that producer nor the affiliate shall accept or receive any compensation from an insurer or other third party for placement of insurance for that customer unless the producer has, prior to the customer's purchase of insurance: (A) Obtained the customer's documented acknowledgment that such compensation will be received by the 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 producer shall disclose in readable language the method for calculating such compensation and, if possible, a reasonable estimate of the amount. (2) Notwithstanding paragraph (1) of this subsection, an insurance producer who is not licensed as a counselor, as defined in this chapter, may not accept or receive any compensation from the customer for placement of insurance. (c) A person shall not be considered a customer for purposes of this Code section if the person is merely: (1) A participant or beneficiary of an employee benefit plan; or (2) Covered by a group or blanket insurance policy or group annuity contract sold, solicited, or negotiated by the insurance producer or affiliate. (d) This Code section shall not apply to: (1) A person licensed as an insurance producer who acts only as an intermediary between an insurer and the producer, such as a managing general agent, a sales manager, or a wholesale broker; (2) A reinsurance intermediary; (3) The renewal or any other continuation of the policy; or (4) A producer whose sole compensation for the placement is derived from commissions, salaries, and other remuneration from the insurer. (e) The Commissioner may promulgate rules and regulations as necessary to implement the provisions of this Code section.