[Code of Federal Regulations]

[Title 44, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 44CFR62.6]



[Page 317-318]

 

              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE

 

 CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY, DEPARTMENT OF HOMELAND 

                                SECURITY

 

PART 62_SALE OF INSURANCE AND ADJUSTMENT OF CLAIMS--Table of Contents

 

                     Subpart A_Issuance of Policies

 

Sec. 62.6  Minimum commissions.



    (a) The earned commission which shall be paid to any property or 

casualty insurance agent or broker duly licensed by a state insurance 

regulatory authority, with respect to each policy or renewal the agent 

duly procures on behalf of the insured, in connection with policies of 

flood insurance placed with the NFIP at the offices of



[[Page 318]]



its servicing agent, but not with respect to policies of flood insurance 

issued pursuant to Subpart C of this part, shall not be less than $10 

and is computed as follows:

    (1) In the case of a new or renewal policy, the following 

commissions shall apply based on the total premiums paid for the policy 

term:



------------------------------------------------------------------------

                                                             Commissions

                       Premium amount                         (percent)

------------------------------------------------------------------------

First $2,000 of Premium....................................           15

Excess of $2,000...........................................            5

------------------------------------------------------------------------



    (2) In the case of mid-term increases in amounts of insurance added 

by endorsements, the following commissions shall apply based on the 

total premiums paid for the increased amounts of insurance:



------------------------------------------------------------------------

                                                             Commissions

                       Premium amount                         (percent)

------------------------------------------------------------------------

First $2,000 of Premium....................................           15

Excess of $2,000...........................................            5

------------------------------------------------------------------------



    (b) Any refunds of premiums authorized under this subchapter shall 

not affect a previously earned commission; and no agent shall be 

required to return that earned commission, unless the refund is made to 

establish a common policy term anniversary date with other insurance 

providing coverage against loss by other perils in which case a return 

of commission will be required by the agent on a pro rata basis. In such 

cases, the policy shall be immediately rewritten for a new term with the 

same amount(s) of coverage and with premium calculated at the then 

current rate and, as to return premium, returned, pro rata, to the 

insured based on the former policy's premium rate.



[46 FR 13515, Feb. 23, 1981, as amended at 53 FR 15221, Apr. 28, 1988; 

57 FR 19541, May 7, 1992]