Commission received for special services such as loss adjustment and inspection not related to policies issued by the company (see Income from Special Services).

Ins 6.30(1)(b)2.b. b. Reinsurance Assumed

Commission and allowances of every nature on reinsurance assumed including tax and board allowances and reinsurance brokerage, except contingent commission, shall be included in Commission and Brokerage-Reinsurance Assumed.

Exception: Where commission and allowances under reinsurance assumed take the form of accurate proportions of actual expenses incurred, as in some quota share and pooling agreements, entries shall be made to the actual expenses.

Ins 6.30(1)(b)2.c. c. Reinsurance Ceded

Commission and allowances of every nature on reinsurance ceded including tax and board allowances and reinsurance brokerage, except contingent commission, shall be included in Commission and Brokerage-Reinsurance Ceded.

Exception: Where commission and allowances under reinsurance ceded take the form of accurate proportions of actual expenses incurred, as in some quota share and pooling agreements, entries shall be made to the actual expenses.

Ins 6.30 Note Note: Examples Relating to the Treatment of Commission on Reinsurance Assumed and Reinsurance Ceded:

Ins 6.30 Note 1. Company A cedes business to Company B under a treaty specifying a commission of 35% and an allowance for taxes and board fees of 5%. On the statement filed by Company A, both the 35% and the 5% shall be entered in Commission and Brokerage-Reinsurance Ceded. On the statement filed by Company B, both the 35% and the 5% shall be entered in Commission and Brokerage-Reinsurance Assumed.

Ins 6.30 Note 2. Company A cedes 10% of all its business to Company B under an agreement whereby Company B pays 10% of all actual expenses, on such business, incurred by Company A. Assume the expenses of Company A on the business reinsured as follows:

Ins 6.30 Note Note: These are not intended to show the complete list of expenses involved but are given only for illustration purposes.

Ins 6.30 Note On the statement filed by Company A the commission and allowances by Company B shall be credited as follows:

Ins 6.30 Note On the statement filed by Company B the commission and allowances made to Company A shall be debited as follows:

Ins 6.30(1)(b)2.d. d. Contingent — Net

Include:

Contingent or profit commission paid.

Contingent or profit commission received.

Contingent commission to employees when the activities for which the contingent commission is paid are not a part of their duties as employees.

Ins 6.30(1)(b)2.e. e. Policy and Membership Fees

Include:

Policy and membership fees retained by, or paid to, agents.

Policy and membership fees to employees when the activities for which the policy and membership fees are paid are not a part of their duties as employees.

Ins 6.30(1)(b)3. 3. Allowances to Managers and Agents

Include:

Net allowances, reimbursements and payments for expenses of every nature, not computed as a percentage of premiums, to managers, agents, brokers, solicitors, and other producers.

Exclude:

Compensation to employees (see Salaries).

Expenses of salaried employees (see Travel and Travel Items).

Expenses of management where one insurance company has been appointed manager for another (see Joint Expenses; Commission and Brokerage-Reinsurance Assumed and Ceded; and Expenses for Account of Another).