Beginning January 1, 2010, producers may not accept or receive any compensation from an insurer or third party administrator for the placement of a health benefit plan as per 31A-23a-501, other than a hospital confinement indemnity policy, unless prior to the customer’s purchase of the health benefit plan the producer:
- discloses in writing to the customer that the producer will receive compensation from the insurer or third-party administrator for the placement of insurance, including the amount or type of compensation; and either
- obtains the customer’s signed acknowledgment that the disclosure was made to them;
- or certifies to the insurer that the disclosure was made to the customer.
Producers are welcome to use the sample Producer Agreement and Compensation Disclosure drafted by the department.
