Section 13D - Allows to Pay Commissions to Unlicensed Person?

[Pancur]

Hi,
Did you guys hear about this Section 13D? According to http://www.naic.org/documents/committees_ex_pltf_plwg_comshare.pdf unlicensed person may be paid commission in most states if she/he doesn't sell, solicit or negotiate insurance.
Has anyone of you ever verified the information with your DIs? What do you think about it?
Thanks,

 

[Frank Stastny]

Yes I have.

It makes reference to an agent being to receive an "override" commission. Agents who offer contracts receive an "override".

There are several states where one cannot receive an override unless the person is licensed to sell insurance in that state. The majority of states do not require the agent to be licensed in the state to receive an override.

This provision would pretty much be useless to an agent who is considering hiring someone to say set appointments thinking he can pay that person a commission.