(1) For the purposes of calculating the amount of insurance premiums under
this Part, the acquisition and policy administration expenses of a
licensed insurer may not include, as the amount of
commission or other remuneration payable to the insurer's agent or agents for
the issue of third-party policies by the insurer, an amount that exceeds 5%
(or such other percentage as may be prescribed by the regulations) of the
premium payable for policies.
"commission or other remuneration" does not include payment for business
expenses incurred by an insurer's agent.
"insurer's agent" means any insurance broker or commission agent acting for or
on behalf of a licensed insurer in connection with the issue of third-party
policies by the insurer.