I've always wondered, do illustrators, like agents get a chunk of your royalities or do they get paid seperately. Are authors allowed to chose their own illustrators or does the publisher always have the final say in the matter?
I've illustrated some covers (Illustration is my living) and was paid a one-time fee. For one book I knew the author and she had picked me for the job herself. I hope that answers both your questions.
Publishers prefer to handle the illustrations with either their in-house art department or freelancers with whom they've worked before. If you self-pub, or want to submit finished artwork by your own illustrator, payment details will be whatever the two of you agree upon. Some, like the previous poster, are paid a one-time fee. Some may prefer sharing the advance and (hopefully) royalties.
Same thing applies. But you'll be asked to provide a rough copy that the art people can work from. That's what I did for the illustrations in my book. Between the supplied rough copy and some collaboration via the phone and email, the finished products turned out well.
if the publisher and book stylist think your work is good enough, they might let it be used... but it's not your call, in any case, unless you can get a clause to that effect added to your contract...
Just paint something or draw something that shames their inhouse artist, and I'm sure they will use your art. That comment was for maps and such. For book covers it is different. Their marketing department probably has an idea of what they want to represent the novel, so your cover will most likely not be used, no matter how great the art.