The South Dakota Division of Insurance is warning agents against offering most customers a cut of their commissions or charging customers extra fees.
South Dakota prohibits use of agent commission rebates in the sale of insurance products subject to state regulation, such as health insurance policies designed for individuals or employers with fewer than 50 employees, Merle Scheiber, director of the South Dakota insurance division, writes in a bulletin addressed to the state's insurance producers.
Scheiber also warns producers that South Dakota treats any fees charged by producers as premiums.
