Insurance Compensation and Rebating FAQ

  • Sections 1207(3); 1240(4)

    Updated 05/09/16

FAQ
Referral Fees
May an unlicensed individual provide a list of referrals to a licensed producer for a fee?

Yes, so long as payment of the referral fee is not contingent upon a referral applying for or purchasing a policy.

Is there a limit on the dollar amount or value of the gift or service offered as a referral fee?

No, so long as payment of the referral fee does not violate MCL 500.2024, which prohibits rebating or inducement.

May an attorney acting as a counselor that is not licensed as a counselor provide referrals to a licensed producer for a fee?

Yes.

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