Basis for compensation of administrator.
1. The compensation paid to an administrator for his services may be based upon premiums or charges collected, on number of claims paid or processed or on any other basis agreed upon by the administrator and the insurer, except as provided in subsection 2.
2. Compensation paid to an administrator may not be based upon or contingent upon:
(a) The claim experience of the policies that he handles; or
(b) The savings realized by the administrator by adjusting, settling or paying the losses covered by an insurer.
Last modified: February 27, 2006