Commission Split Vs. Finder's Fee Vs. Referral Fee

[mikemansel]

Checking in as a new member with a question about fees, commissions and referral fees - State of California only. An agency to whom I provide services has asked if it is permissable to pay a licensed Life Agent (not in any way associated with or related to the agency) a commission, finder's fee or referral fee for having referred a large Workers Compensation account to the agency?
Cheers. Mike

 

[DHK]

You can only do so under "like" licensing. P&C for P&C. L&H for L&H. Don't try to mix them.

However, there may be other ways you can compensate that can be legal.

Can you pay them a fee for marketing? Lead Generation? Office Use? Just keep in mind that whatever other arrangement you make, is paid regardless of whether you close business or not.