23 CAR Part 7 — Payment of Commissions to Officers and Directors

Chapter I

Subchapter A

Subpart 1

23 CAR § 7-101 Purpose {#sec-23-car-7-101 omnilex-key=us-ar-regs-official--title-23-part-7--23 CAR § 7-101}

23 CAR § 7-101. Purpose.

The intent or purpose of this rule is as follows:

(1) It is found and determined by the Insurance Commissioner that the payment of overwriting commissions beyond a period of ten (10) years is:

(A) Unfair;

(B) Unreasonable; and

(C) Not in the best interest of insurers; and

(2) This rule is intended to:

(A) Provide a reasonable period, the formative years of a domestic life insurer, during which officers or directors may receive overwriting commissions; and

(B) Prevent payment of overwriting commissions for indefinite periods contrary to the best interests of the insurer.

23 CAR § 7-102 Payment of commissions to officers and directors {#sec-23-car-7-102 omnilex-key=us-ar-regs-official--title-23-part-7--23 CAR § 7-102}

23 CAR § 7-102. Payment of commissions to officers and directors.

No domestic life insurance company that has been in existence for a period of ten (10) years or more shall pay directly or indirectly to any of its officers or directors any overwriting commissions, as defined in Arkansas Code § 23-66-313, except that domestic life insurance companies may pay commissions on business personally produced by an officer or director during the period that such officer or director was serving as an agent for the company on a commission basis only.