Insurance Division Bulletin INS 92-3
DATE: July 1, 1992
TO: All Insurers Authorized to Transact Life Insurance
RE: Marketing Practices for Paying Commissions
The Oregon Insurance Division has received several inquiries concerning the requirements for paying commissions. It is a well established position of this Division that manipulation of commissions per
sale or blocks of sales is in violation of statutes ORS 746.015, 746.045, 744.039 and 742.005(3) as being discriminatory, rebating, not authorized by rule and prejudicial to the interest of the policyholder.
This position includes any commission practice of no commission, fee-for-service, qualifying commissions, dial-a-commission, and any variations that allows the agent to adjust the commission level
or where no commission is received on each sale.
This Division expects any variations in marketing and commission practices to be filed as part of the form approval process. Any deviated marketing practices that were not specifically approved with
the forms filing may be grounds for disapproval and sanctions if in violation of this position.
Mary Alice Bjork, Administrator
Department of Insurance and Finance