For Regular Premium policies, no Indemnity Commission is allowed beyond the conditions set out below. The Commissions paid should be based on the Annualized Premium collected.
If the Mode of Premium Payment is semi-annual, quarterly, or monthly, the Commissions paid can be based on the Annualized Premium. In this case, it must be borne by the Company and not through the policyholder account.
The Commissions paid on Annualized Premium is subject to the following conditions:
First year Commissions shall be capped at 50% of the Annualized Premium or 50% of the total Commissions payable under the insurance policy, whichever is less.
The remaining Commissions shall be paid out equally over the remaining Premium Payment Term of the policy. For Premium Payment Terms of 20 years or more, the Actuary may propose a non-equal pay, provided that it will be subject to prior approval by the Authority, pursuant to Article No. (17) of the Instructions herein.
The first year Commissions shall be subject to Commission Claw-Back during the first five years of the policy at a minimum.