CONTROLLED BUSINESS. (a) No individual (including a subagent) may receive directly, or indirectly through a Company or its affiliates, any compensation (including, but not limited to, any commission, profit sharing, bonus, or any other direct or indirect benefit) for the sale and service of an eligible crop insurance contract if:
(1) The individual has a substantial beneficial interest, or a member of the individual’s immediate family has a substantial beneficial interest, in the eligible crop insurance contract; and
(2) The total compensation to be paid to the individual with respect to the sale or service of the eligible crop insurance contract that meets the condition described in paragraph 1 exceeds 30 percent, or the percentage specified in State law, whichever is less, of the total of all compensation received directly or indirectly by the individual for the reinsurance year.
(b) Not later than 90 days after the first annual settlement for the reinsurance year, any individual that received directly or indirectly any compensation through a Company or its affiliates for the service or sale of any eligible crop insurance contract in the prior reinsurance year shall certify to the applicable Company, in format approved by FCIC, that the compensation that the individual received was in compliance with this paragraph.
(c) Not later than 120 days after the first annual settlement for the reinsurance year, the Company shall provide FCIC a list of individuals who either failed to timely provide the required certification or whose certification demonstrated non- compliance with the requirements of this paragraph. If the Company fails to comply with this provision, FCIC may deny all or a portion of A&O subsidy or CAT LAE.
(d) Non-compliance
(1) The following individuals are subject to disqualification and civil fines under FCIC procedures implementing section 515(h) of the Act (7 U.S.C. § 1515(h)) and any other FCIC procedures implementing section 515(h):
(A) Individuals who failed to timely provide the required certification;
(B) Individuals who certified non-compliance with the requirements of this paragraph, except where non-compliance results from circumstances beyond the control of the individual; or
(C) Individuals who certified compliance but who have been determined to not be in compliance.
(2) Reinsurance will not be denied for the eligible crop insurance contracts associated with any violation with respect to paragraph (1).
(e) If the amount of compensation to which the i...
CONTROLLED BUSINESS a. No individual (including a subagent) may receive directly, or indirectly through a Company or its affiliates, any compensation (including any commission, profit sharing, bonus, or any other direct or indirect benefit) for the sale or service of an eligible livestock price insurance contract if:
i. The individual has a substantial beneficial interest, or a member of the individual’s immediate family has a substantial beneficial interest, in the eligible livestock price insurance contract; and
ii. The total compensation to be paid to the individual with respect to the sale or service of the eligible livestock price insurance contract that meets the condition described in subclause (1) exceeds 30 percent, or the percentage specified in State law, whichever is less, of the total of all compensation received directly or indirectly by the individual for all eligible livestock price insurance contracts sold and serviced by the individual for the reinsurance year.
b. Not later than 90 days after the end of the reinsurance year, any individual that received directly or indirectly any compensation through a Company or its affiliates for the service or sale of any eligible livestock price insurance contract in the prior reinsurance year shall certify to the applicable Company, in a format approved by FCIC, that the compensation that the individual received was in compliance with this paragraph.
c. Not later than 120 days after the end of the reinsurance year, the Company shall provide FCIC a list of individuals who either failed to timely provide the required certification or whose certification demonstrated non-compliance with the requirements of this paragraph.
d. Individuals who failed to timely provide the required certification, certified that the individual was not in compliance with the requirements of this paragraph, or certified the individual as being in compliance when they were not are subject to disqualification and civil fines under the procedures implementing section 515(h) of the Federal Crop Insurance Act and any other procedures approved by FCIC implementing section 515(h). Reinsurance will not be denied for the eligible livestock price insurance contracts associated with any failure to timely provide the required certification, certification that the individual was not in compliance with the requirements of this paragraph, or certification of the individual as being in compliance when they were not.
CONTROLLED BUSINESS. Insurance policies or investment products sold by an RR/Agent for RR/Agent's own account, or to RR/Agent's spouse, parents, children, employee(s), or to another USPA&IRA RR/Agent, or to the spouse, parents, children, or employee(s) of said RR/Agent, shall be identified as "controlled business" on the Cover Memo provided to USPA&IRA by the RR/Agent and shall be subject to the following special rules:
(1) If any such "controlled business" becomes nonpersistent (as described in Annexes A and B), the PC penalty normally applicable to such "nonpersistent business" shall be double that described in the respective Annexes.
(2) In addition, USPA&IRA may retroactively apply the PC penalty to the date of the original sale and adjust accordingly any commissions which may have been awarded as a result of the originally credited PC.
(3) If any insurance sale defined as "controlled business" directly or indirectly replaces existing insurance sold through ERA, no commissions shall be paid or PC credited as a result of the issuance of the "controlled business." For purposes of this provision, an indirect replacement will be deemed to have occurred if insurance sold through XXX was terminated by the purchaser within six (6) months prior to the issuance of the "controlled business."
