S.D. Admin. R. 20:06:13:61
An issuer or other entity may provide a commission or other compensation to an agent or other representative for the sale of a Medicare supplement policy or certificate only if the commission or compensation for the first year is no more than 200 percent of the commission or compensation paid for selling or servicing the policy or certificate in the second year or period.
The commission or other compensation provided in subsequent or renewal years must be the same as that provided in the second year or period and must be provided for at least five renewal years.
An issuer or other entity may not provide compensation to its agents or other producers and an agent or producer may not receive compensation greater than the renewal compensation payable by the replacing issuer on renewal policies or certificates if an existing policy or certificate is replaced.
For purposes of this section, the term, compensation, includes pecuniary and nonpecuniary remuneration of any kind relating to the sale or renewal of the policy or certificate, including bonuses, gifts, prizes, awards, and finder's fees.
Any commission advance or commission loan or other compensation by whatever named called, whether measured alone or in conjunction with other commissions, provided by an issuer or other entity, may not exceed the monetary threshold for a first year commission as required by this section. The fact that a commission loan or commission advance may be required to be repaid later or reduced if the insurance is terminated does not allow for compensation at any time to be in excess of the first year limitations required by this section.
S.D. Admin. R. 20:06:13:61
General Authority: SDCL 58-4-1, 58-17A-2.
Law Implemented: SDCL 58-17A-2.