Can You Give Money to Another Agent?

[podunkmutual]

I'm relatively new to the insurance game and don't know the real answer to this question - can you give money to another agent for referring you business. For example, if someone gets declined for life insurance with a captive agent and that agent sends him to an independent one, can the independent one reward him for that referral? Can he pay part of the commision to him?

I'm pretty sure the answer is no, but was curious because I know of this happening with other agents.

I operate in Indiana and Michigan.

Thanks!

 

[garvak]

I'm relatively new to the insurance game and don't know the real answer to this question - can you give money to another agent for referring you business. For example, if someone gets declined for life insurance with a captive agent and that agent sends him to an independent one, can the independent one reward him for that referral? Can he pay part of the commision to him?

I'm pretty sure the answer is no, but was curious because I know of this happening with other agents.

I operate in Indiana and Michigan.

Thanks!

It really depends on your state. Most states it is illegal to give and/or collect a referral fee.

 

[VolAgent]

Yes, generally it is perfectly legal to share commissions with another licensed agent. Your state may have a different law, but in most states it is legal. Some contracts prohibit the sharing of commission with another agent that is not appointed with the insurance company. And some captive contracts prohibit agents from receiving shared commissions.

How often these are ignored I will leave to you to figure out.

 

[Josh]

It really depends on your state. Most states it is illegal to give and/or collect a referral fee.

But that's not at all what this is, not even close.

What is being talked about here is a commission split. The problem with referral fees is that it's considered a commission split and folks need an insurance license to collect a commission. As long as both parties are licensed, that's a non-issue.

 

[podunkmutual]

Interesting. Thanks for the replies!

 

[Guest]

I cant take anything this OP says seriously, with a name of Pudunk...........LOL

 

[Norwayguy]

I'm relatively new to the insurance game and don't know the real answer to this question - can you give money to another agent for referring you business. For example, if someone gets declined for life insurance with a captive agent and that agent sends him to an independent one, can the independent one reward him for that referral? Can he pay part of the commision to him?

I'm pretty sure the answer is no, but was curious because I know of this happening with other agents.

I operate in Indiana and Michigan.

Thanks!

Since all the rational answers have been given below is my answer.

Yes please send the money to my address which you can get via my signature link.

 

[ctg]

But that's not at all what this is, not even close.

What is being talked about here is a commission split. The problem with referral fees is that it's considered a commission split and folks need an insurance license to collect a commission. As long as both parties are licensed, that's a non-issue.

There is usually a section on the app for "agent record" or something close- where you can put in the commission split-100% to you or 90-10 or whatever. I've kind of partnered with a primarily p&c guy-I send him p&c from my clients, he sends me life/health. He's got enough on his plate doing p&c and for now and would rather keep his clients from shopping for life and health. I can't sell p&c, but if my clients ask-I send them to him. We agree on the split and call it a day...works for both of us...

 

[Norwayguy]

There is usually a section on the app for "agent record" or something close- where you can put in the commission split-100% to you or 90-10 or whatever. I've kind of partnered with a primarily p&c guy-I send him p&c from my clients, he sends me life/health. He's got enough on his plate doing p&c and for now and would rather keep his clients from shopping for life and health. I can't sell p&c, but if my clients ask-I send them to him. We agree on the split and call it a day...works for both of us...

That only works if the other agent is appointed with the carrier as well. I believe the op has a split where the other agent is not appointed. Call your DOI and ask if its legal to share commissions with another licensed agent.

 

[rousemark]

Since all the rational answers have been given below is my answer.

Yes please send the money to my address which you can get via my signature link.

Since you are concerned about sending money to another agent, it would be better to send it to me than Norway... I'm not really an agent.. I'm an "advisor"...