§ 58-34-5. Retrospective compensation agreements. - North Carolina Statutes

§58‑34‑5.  Retrospective compensation agreements.

(a)        Retrospectivecompensation agreements for business written under Articles 1 through 64 ofthis Chapter must be filed with the Commissioner for his approval.

(b)        "Retrospectivecompensation agreement" means any such arrangement, agreement, or contracthaving as its purpose the actual or constructive retention by a domesticinsurer of a fixed proportion of the gross premiums, with the balance of thepremiums, retained actually or constructively by the agent or the producer ofthe business, who assumes to pay therefrom all losses, all subordinatecommissions, loss adjustment expenses and his profit, if any, with otherprovisions of such arrangement, agreement, or contract auxiliary or incidentalto such purpose.

(c)        The standards forapproval shall be as set forth under G.S. 58‑34‑2(d)(5). (1987,c. 752, s. 8; 1989, c. 485, s. 60; 1991, c. 681, s. 52.)