Section 532.7c - Notice of Compensation(a) In the case of a policy issued to a group described in clause (5.1) or (5.2) of 40 P.S. § 532.1 on a group basis, if compensation of any kind will or may be paid to a policyholder or sponsoring or endorsing entity, the insurer shall cause to be distributed to prospective insureds in a written notice that compensation will or may be paid.(b) Such notice shall be distributed: (1) whether compensation is direct or indirect; and(2) whether such compensation is paid to or retained by the policyholder or sponsoring or endorsing entity, or paid to or retained by a third party at the direction of the policyholder or sponsoring or endorsing entity, or any entity affiliated therewith by way of ownership, contract, or employment.(c) The notice required by this section shall be placed on or accompany any application or enrollment form provided to prospective insureds.(d) As used in this section, a "sponsoring or endorsing entity" means an organization which has arranged for the offering of a program of insurance in a manner which communicates that eligibility for participation in the program is dependent upon affiliation with such organization or that it encourages participation in the program. 1994, Feb. 3, P.L. 1, No. 1, § 6, effective in 90 days.