Bona Fide Supervising General Agents

Bona Fide Supervising General Agents A. The intent of this Regulation is to prohibit the use of a supervising general agent’s license as a means to provide additional excessive commissions to a writing agent or creditor. B. A bona fide supervising general agent shall be defined as an applicant applying for a license or a renewal thereof to permit said applicant to supervise the activities of soliciting agents, to service said business, and not for the purpose of obtaining an override commission on “controlled” business. For purposes of this Regulation, controlled business is defined as credit insurance premiums written by or for an agent or creditor in which the applicant, his relatives, business associates, employers, employees or any of them have an interest, either legal or beneficial. C. Violations of the restrictions on compensation by the applicant or by the insurance company, if found by the Commissioner, may lead to sanctions set forth by law to be assessed against the violating applicant or agent and/or the insurance company. D. Bona fide agents applying for a credit life and credit disability supervising general agent’s license shall make application for a privilege license to the Mississippi Insurance Department on a form prescribed by the Commissioner of Insurance. Said form will include the attachment of an affidavit appointment from each company appointing the supervising general agent which will expire December 31 of each year. The affidavit appointment must be renewed annually with the renewal of the supervising general agent’s privilege license. The affidavit appointment will include the following information: 1. General information as to the insurance company appointing the supervising general agent; whether the agent is incorporated or unincorporated. 2. Specific functions, authority and responsibilities granted by the insurance company to the supervising general agent as designated in the agent’s contract with the company. 3. Identification of the soliciting agent or sub-agent who will be under the supervision of the supervising general agent. 4. Any additional information the Commissioner may deem necessary to determine the validity of the privilege license. Upon withdrawal of the affidavit appointment, said insurance company will notify the supervising general agent that this appointment is terminated. The supervising general agent’s privilege license will be classified invalid by the Mississippi Insurance Department unless a new affidavit appointment is submitted by a licensed credit life and credit disability insurance company within 30 calendar days of the effective termination date. Said insurance company will notify the Department and supervising general agent of this termination.