§ 20-512. Payment of commission to producer

   (a) In general. -- Except as provided in subsection (b) of this section, the Fund shall pay to a fund producer of a policyholder to whom a policy is issued a commission:

   (1) for private passenger auto insurance issued by the Fund, at a rate determined by the Fund but not less than 10% and not to exceed 15% of the total premium; and

   (2) for any other insurance issued by the Fund, at a rate determined by the Fund but not to exceed 10% of the total premium.

(b) Exceptions. -- The Fund may not pay a commission:

   (1) on a fully earned basis;

   (2) if a prospective insured fails to qualify under § 20-502 of this subtitle; or

   (3) if a prospective insured's initial payment to the Fund, a fund producer, or premium finance company is not honored.

(c) Unearned commissions. -- If a policy issued by the Fund is canceled, the Fund shall refund any unearned commissions.

HISTORY: An. Code 1957, art. 48A, § 243B; 1996, ch. 11; 2001, ch. 731, § 1; 2012, ch. 336.