Insurance Regulation

A producer wants to share part of a commission with an unlicensed friend who introduced the client. What does section 2102(e) say?

Answer and explanation
Answer: B. Section 2102(e) stops a person from accepting a commission, service fee, brokerage or other valuable consideration for selling, soliciting or negotiating insurance in this state when that person must be licensed and is not. Relabelling the payment, limiting the friend's role and the client's consent do not cure it.Source: N.Y. Ins. Law § 2102 — § 2102(e)

On the exam in: New York · difficulty: medium

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