The authors explore fundamental guardrails of insurance sales compensation, including state-specific nuances that govern the sharing of commissions and referral fees. Though all 50 states and Washington, D.C., have implemented the Producer Licensing Model Act in some form, states impose varying requirements that it is important to be aware of.
“The long and the short of it is simple: when can paying or receiving compensation that is in any way related to the sale of insurance, you need to be aware of the parties’ licensing status, their conduct, and their status (as well as the location of the insured),” the authors conclude. “Remember, this can be a big deal so do not forget to go through the proper analysis.”
