1. An administrator shall not enter into any agreement or understanding with an insurer in which the effect is to make the amount of the administrator’s commissions, fees or charges contingent upon savings effected in the adjustment, settlement and payment of losses covered by the insurer’s obligations. This provision shall not prohibit an administrator from receiving performance based compensation for providing hospital or other auditing services.

2. This section shall not prevent the compensation of an administrator from being based on premiums or charges collected or the number of claims paid or processed.