[Code of Federal Regulations]
[Title 44, Volume 1]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 44CFR62.6]

[Page 301-302]
 
              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 302]]

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:

------------------------------------------------------------------------
                 Premium amount                   Commissions (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:

------------------------------------------------------------------------
                 Premium amount                   Commissions (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]