Insurance Compensation and Rebating FAQ

  • Sections 1207(4); 1212; 1240(1), (2), and (4)

    Updated 05/09/16

FAQ
Splitting / Assigning Commissions
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?

Yes.

May a licensed producer split a commission with a solicitor who the producer sponsors?

Yes.

  • The answers provided are not meant to be a substitute for legal advice.