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This entry was published on 2014-09-22
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SECTION 4230
Salaries and pensions to officers and employees
Insurance (ISC) CHAPTER 28, ARTICLE 42
§ 4230. Salaries and pensions to officers and employees. (a) No
domestic life insurance company shall pay any salary, compensation or
emolument in any amount to any officer, deemed by a committee or
committees of the board to be a principal officer pursuant to subsection
(b) of section one thousand two hundred two of this chapter, or to any
salaried employee of the company if the level of compensation to be paid
to such employee is equal to, or greater than, the compensation received
by any of its principal officers, or to any trustee or director thereof,
unless such payment be first authorized by a vote of the board of
directors of such company.

(b) (1) No such company shall make any agreement with any of its
officers or salaried employees whereby it agrees that for any services
rendered or to be rendered he or she shall receive any salary,
compensation or emolument that will extend beyond a period of sixty
months from the date of such agreement, except that payment of the
salary or other compensation of any of its officers or employees, other
than a mechanic, worker or laborer, may by written contract be deferred
beyond such period of sixty months, which contract may include
conditions to be met by such officer or employee before payment will be
made.

(2) Paragraph one of this subsection shall not apply to contracts by
the company with its agents for the payment of first year or renewal
commissions and additional compensation as provided in section four
thousand two hundred twenty-eight of this article.

(3) Paragraph one of this subsection shall not apply to any long-term
incentive compensation plan offered to any officer or employee of such
company which has been approved by the board of directors, is based in
whole or in part upon the financial performance of the company and is
submitted for informational purposes to the superintendent prior to its
implementation.

(c) No principal officer or employee of the class described in
subsection (a) hereof who is paid a salary for his services shall
receive any other compensation, bonus or emolument from such company,
directly or indirectly, except in accordance with a plan recommended by
a committee of the board pursuant to subsection (b) of section one
thousand two hundred two of this chapter and approved by the board of
directors.

(d) No such company shall grant any pension to any officer, trustee or
director thereof or to any member of his family after his death, except
that such company may pursuant to the terms of a retirement plan adopted
by the board of directors of such company, provide for any person who is
or has been a salaried officer or employee of such company, a pension
payable at the time of his retirement by reason of age or disability,
and also life insurance benefits payable at his death.