Responsibility of insurer.

(a) No insurer or representative of insurer shall agree with or permit any person, firm, or corporation other than its own employes or attorneys or adjusters or independent adjusters to adjust or pay claims under debtor’s policies. No agent, broker or other person having a retrospective commission arangement or other beneficial interest in such policy of insurance shall partake in the selection, designation, or employment of, any insurance carrier’s employe, adjuster, or attorney, nor shall provide any office facilities for any insurance carrier’s employe, attorney or adjuster, nor shall such agent, broker, or other person having a retrospective commission or other beneficial interest in any policy of insurance act in any capacity directly or indirectly in the adjustment of a loss, in behalf of the insurance carrier.

(b) No insurer or representative of insurer shall enter into or renew any agreement with any agent, broker or other person which permits the retention or withholding by such person for the purpose of payment of losses, or loss adjustment expense, any portion of premiums collected under policies of insurance issued by the insurer. Nothing in this subsection shall prohibit reasonable contingent commission arrangements based on underwriting results.