§ 4312 — Employment of solicitors; pension plans

New York § 4312

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 43: Non-profit Medical and Dental Indemnity, or Health and Hospital Service Corporations

Text

§ 4312. Employment of solicitors; pension plans. (a) 1. Every\ncorporation subject to the provisions of this article may employ\nsolicitors or accept business from agents and brokers on a commission\nbasis, but all solicitors shall be paid on a salary basis only. It is\nexpressly provided such solicitors are exempt from obtaining a license.\nCommissions shall be included in the corporation's rate manual and rate\nfilings and commissions payable by health maintenance organizations\norganized under this article or health maintenance organizations\noperating as a line of business of corporations organized under this\narticle shall continue to be subject to existing regulations governing\ncommissions payable by health maintenance organizations.\n 2. Any corporation exercising the authority granted in paragraph one\nof this subsection shall provide to the superintendent at the time a\ncorporation commences the use of agents and brokers on a commission\nbasis, a detailed plan explaining the purpose for which agents and\nbrokers are to be utilized, the lines of business or products where\nagents and brokers are to be utilized, the commission scales to be\nemployed in compensating such agents and brokers, and such other\ninformation as required by the superintendent.\n (b) No corporation subject to the provisions of this article shall\nhereafter enter into any agreement, directly or indirectly, with an\nofficer, director or salaried employee of such corporation whereby it\nagrees that for any services rendered or to be rendered he shall receive\nany salary, compensation or emolument that will extend beyond a period\nof thirty-six months from the date of such agreement, except that\npayment of an amount not in excess of twenty percent for the years\nnineteen hundred eighty-five and nineteen hundred eighty-six and\nthirty-three and one-third percent for the year nineteen hundred\neighty-seven and thereafter of the salary or other compensation of any\nof its officers or employees, other than a mechanic, workingman or\nlaborer, may by written contract be deferred beyond such period of\nthirty-six months, which contract may include conditions to be met by\nsuch officer or employee before payment will be made. No such\ncorporation shall grant any pension to any officer, director or trustee\nthereof or to any member of his family after death, except that such\ncorporation may, in pursuance of the terms of a retirement plan adopted\nby the board of directors of such corporation and approved by the\nsuperintendent, provide for any person who is a salaried officer or\nemployee of such corporation, a pension payable at the time of his\nretirement by reason of age or disability, and also life insurance\nbenefits payable at his death.\n