The commission limit rules in these Instructions shall apply to all Distribution Channels when they are involved in selling the same insurance policy or if the Distribution Channel changes during the term of the policy. Thereupon, the commission limit rules apply as if there is only one Distribution Channel.
If the Company is selling through multiple Distribution Channels or using different types of Distribution Channels, the total costs, such as Commissions, internal expenses, etc., of selling through each channel shall be specifically allocated to the clients within each Distribution Channel. The policyholders shall only bear the costs associated with their Distribution Channel and shall not be disadvantaged by sharing some of the costs of another Distribution Channel, meaning there should not be any cross subsidization between Distribution Channels.
In case of expenses shared between different Distribution Channels, the expense allocation shall be carried out by the Actuary in accordance with the above-mentioned controls.
All Distribution Channels that are involved in the process of sale, shall comply with refunding the Commissions in full if the policy is surrendered within the Free Look Period. Likewise. the pro-rated first year Commissions must be refunded to the Company after the Free Look Period.