N.Y. Insurance Law § 4312: Employment of solicitors; pension plans

§ 4312. Employment of solicitors; pension plans. (a) 1. Every

corporation subject to the provisions of this article may employ

solicitors or accept business from agents and brokers on a commission

basis, but all solicitors shall be paid on a salary basis only. It is

expressly provided such solicitors are exempt from obtaining a license.

Commissions shall be included in the corporation's rate manual and rate

filings and commissions payable by health maintenance organizations

organized under this article or health maintenance organizations

operating as a line of business of corporations organized under this

article shall continue to be subject to existing regulations governing

commissions payable by health maintenance organizations.

2. Any corporation exercising the authority granted in paragraph one

of this subsection shall provide to the superintendent at the time a

corporation commences the use of agents and brokers on a commission

basis, a detailed plan explaining the purpose for which agents and

brokers are to be utilized, the lines of business or products where

agents and brokers are to be utilized, the commission scales to be

employed in compensating such agents and brokers, and such other

information as required by the superintendent.

(b) No corporation subject to the provisions of this article shall

hereafter enter into any agreement, directly or indirectly, with an

officer, director or salaried employee of such corporation whereby it

agrees that for any services rendered or to be rendered he shall receive

any salary, compensation or emolument that will extend beyond a period

of thirty-six months from the date of such agreement, except that

payment of an amount not in excess of twenty percent for the years

nineteen hundred eighty-five and nineteen hundred eighty-six and

thirty-three and one-third percent for the year nineteen hundred

eighty-seven and thereafter of the salary or other compensation of any

of its officers or employees, other than a mechanic, workingman or

laborer, may by written contract be deferred beyond such period of

thirty-six months, which contract may include conditions to be met by

such officer or employee before payment will be made. No such

corporation shall grant any pension to any officer, director or trustee

thereof or to any member of his family after death, except that such

corporation may, in pursuance of the terms of a retirement plan adopted

by the board of directors of such corporation and approved by the

superintendent, provide for any person who is a salaried officer or

employee of such corporation, a pension payable at the time of his

retirement by reason of age or disability, and also life insurance

benefits payable at his death.