- May a licensed producer accept payment from a client for placing business?
A producer license does not generally authorize brokering, defined as representing and receiving payment from a client for placing business. However, a producer who holds a surplus lines license is specifically authorized to broker surplus lines coverage. A surplus lines broker fee is subject to a limit authorized by Section 1915 of the Insurance Code and Administrative Rule R500.1251.
- May a licensed producer split a commission with another licensed producer who referred a client?
- May a licensed producer split a commission with a solicitor who the producer sponsors?
The answers provided are not meant to be a substitute for legal advice.