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(a) A licensee who receives money in a fiduciary capacity, part of which consists of commissions due the licensee, may remove commission amounts from money held in a fiduciary capacity only after they are earned.
(b) Unless a contract between the licensee and the insurer provides for a commission to be earned at a different time, a commission is earned no earlier than the date on which the licensee receives the money and the insurance coverage is bound. On or after that date, the licensee may remove the commission amounts from fiduciary care.
(c) Commission amounts that are removed from money held in a fiduciary capacity must be documented as to
(1) the specific calculation of the appropriate commission amount; and
(2) the date on which the amount calculated was considered commission.
(d) Premium refunds paid to an insured must include a ratable amount of commission, originally collected by the licensee, and refunded to the insured if a contract of insurance is terminated early.
(e) This section does not establish a generally accepted accounting principal for the purpose of the preparation of a financial statement of a licensee.
(f) Failure to comply with (a), (b), (c), or (d) of this section is a violation of AS 21.27.360 .
(g) For purposes of this section, "ratable" means a proportionate part of premium.
History: Eff. 8/29/90, Register 115; am 8/4/94, Register 131; am 3/30/2003, Register 165
Authority: AS 21.06.090
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The Alaska Administrative Code was automatically converted to HTML from a plain text format. Every effort has been made to ensure its accuracy, but neither Touch N' Go Systems nor the Law Offices of James B. Gottstein can be held responsible for any possible errors. This version of the Alaska Administrative Code is current through June, 2006.
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Last modified 7/05/2006