38.2-516 - Prohibited compensation for intra-company replacement. - Virginia Statutes

§ 38.2-516. Prohibited compensation for intra-company replacement.

No insurer shall pay a commission or other compensation to an appointed agentwho has replaced an existing individual accident and sickness policy with apolicy issued by the same insurer when such new policy provides benefitssubstantially similar to the benefits under the replaced policy, except thatan insurer may pay to such agent a commission or other compensation to theextent that the commission or other compensation does not exceed the renewalcommission that would have been paid to the agent had the replaced policycontinued in force.

(1990, c. 265.)