1. (1) Any producer selling or placing a health benefit plan to a large customer shall provide the large customer an annual accounting of all commission compensation that has been received or shall be received from an insurer or third-party administrator as the result of a sale or placement.
2. (2) The accounting shall be provided before the last day of the seventh month after the plan year ends.
3. (3) A copy of this annual accounting shall be kept on file from inception until three years after the completion of the contract and shall be made available upon request of the commissioner.

4. (4) The annual accounting shall include, at minimum, one of the following:

   1. (a) a completed Department of the Treasury Internal Revenue Form 5500, Annual Return / Report of Employee Benefit Plan, and its relevant attachments for the applicable plan year; or

   2. (b) the following:

      1. (i) the plan sponsor;
      2. (ii) the name of the plan;
      3. (iii) the name and address of the plan administrator;
      4. (iv) the name of the insurance company;
      5. (v) the effective date of the plan;
      6. (vi) the number of active participants at beginning of the plan year;

      7. (vii) the total commission compensation paid or due during the plan year, and shall include on separate reporting lines:

         1. (A) commissions;
         2. (B) overrides;
         3. (C) bonuses;
         4. (D) contingent bonuses or commissions; and
         5. (E) the name and address of each producer to whom a commission is paid or due; and
      8. (viii) signature lines for the plan administrator and the employer or plan sponsor for each producer declaration.
5. (5) Each item listed in Subsection R590-272-4(4)(b)(vii) shall be separately identified in the report.
6. (6) A sample form, The Large Customer Compensation Disclosure Form, is available on the department's website, https://insurance.utah.gov.

KEY: agency compensation, agent compensation, insurance, producer compensation

Date of Last Change: January 10, 2023

Notice of Continuation: May 19, 2026

Authorizing, and Implemented or Interpreted Law: 31A-2-201(3); 31A-23a-501(4)