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Can anyone tell me how to legally pay referral fees to non insurance agents? IE. Lawyers, CPAs or P&C agents
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Has an attorney, cpa, or p&c agent asked you for a referral fee? In my opinion this is not the thing to do. The professional advisors that I network with would be put off by this. And I would be put off if any of them asked for a referral fee.
I don't offer anyone a referral fee, I don't ask for a piece of the pie when I refer P&C to other agents, and they don't ask for a cut when they refer health, disability, or life business to me.
A referral fee is just not a good basis for a professional to professional relationship. Trust, likeability(is that a word?), and confidence that the other guy knows his stuff and will ALWAYS do the right thing - now those are good reasons to refer someone.
In Virginia, you can only pay up to $25 for referrals to people who aren't licensed. It can't be contingent on the sale either.
LIS > Code of Virginia > 38.2-1821.1
In Virginia, you can only pay up to $25 for referrals to people who aren't licensed. It can't be contingent on the sale either.
LIS > Code of Virginia > 38.2-1821.1
8. Any person who refers a customer who seeks to purchase any insurance product to a licensed agent and receives compensation for the referral of a customer, provided that:
a. The referral does not include a discussion of specific insurance policy terms and conditions;
b. The compensation is in the form of a one-time nominal fee of a fixed dollar amount for each referral; and
c. The compensation does not depend on whether the referral results in the purchase of insurance by the customer.