OR DFR Bulletin 1992-03: Marketing Practices for Paying Commissions

INSURANCE DIVISION BULLETIN INS 92-3

DATE: July 1, 1992

TO: All Insurers Authorized to Transact Life Insurance

RE: Marketing Practices for Paying Commissions

The Oregon Insurance Division has received several inquiries concerning the requirements for paying

commissions. It is a well established position of this Division that manipulation of commissions per sale or

blocks of sales is in violation of statutes ORS 746.015, 746.045, 744.039 and 742.005(3) as being

discriminatory, rebating, not authorized by rule and prejudicial to the interest of the policyholder.

This position includes any commission practice of no commission, fee-for-service, qualifying commissions,

dial-a-commission, and any variations that allows the agent to adjust the commission level or where no

commission is received on each sale.

This Division expects any variations in marketing and commission practices to be filed as part of the form

approval process. Any deviated marketing practices that were not specifically approved with the forms filing

may be grounds for disapproval and sanctions if in violation of this position.

_______(signed)_______

Mary Alice Bjork, Administrator

Insurance Division

Department of Insurance and Finance

Department of Consumer and Business Services

Insurance Division

350 Winter St. NE, Room 440

PO Box 14480

Salem, OR 97301-0405

(503) 947-7980

FAX (503) 378-4351

TTY (503) 947-7280

www.oregoninsurance.org