Sec. 841.260. PROHIBITED COMMISSIONS. (a) In this section, "contingent compensation" means a commission or other compensation an insurance company pays to a person that is contingent on: (1) the writing or procurement of an insurance policy in the company; (2) the procurement of an application for an insurance policy in the company; (3) the payment of a renewal premium; or (4) the assumption of an insurance risk by the company. (b) A life insurance company that engages in the business of insurance in this state may not, directly or indirectly, pay or contract to pay a contingent compensation to: (1) the president, vice president, secretary, or treasurer of the company; (2) any other officer of the company, other than an agent or solicitor; (3) an actuary of the company; or (4) a medical director or other physician of the company whose duty is to examine risks or applications for insurance for the company. (c) This section does not prohibit a plan of compensation to a marketing officer according to the total amount of insurance the insurance company writes or to the total amount of insurance in force with the insurance company during a specified period if: (1) the commissioner approves the plan under Subchapter A , Chapter 805 ; (2) the marketing officer is not responsible for underwriting, rating, or otherwise approving the acceptability of insurance risks; and (3) the plan does not compensate the marketing officer according to commissions on individual sales of any insurance product.
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