In some states (e.g. CA) you can technically give referral fees / splits to unlicensed individuals if you do that to ALL your referral partners. I verified with the DOI that I could set up revenue sharing arrangements with other professionals or "finders" with whom I signed a contract. This is a very grey area / slippery slope situation though, so I'd prefer to do it the cleanest way which is to make sure the other person is licensed.
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Small referral fees are one thing (as long as everyone gets paid whether the referral buys or not), but splitting a 10K commission with an unlicensed person is quite another.
It shouldn't be (and probably isn't) a gray area in California either.
It shouldn't be (and probably isn't) a gray area in California either.
CA insurance code doesn't set a dollar level limit on referral fees. So technically if you gave all your referrals a 50% split it would be legal. As per my prior post, this is straight from the DOI.
What you CAN'T do is offer a direct incentive (of any sort) for purchasing insurance, or offer "discounted" insurance.
BIG RED IS BACK
Super Genius
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150,000 in commission? I call BS
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Probably a good size estate planning case. No reason to call BS.
Doesn't sound too outrageous...I know of a couple guys at the same agency that wrote cases with over 200K commissions. Huge life policies.
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G
Guest
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What is "premium finance"?
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Waaay back in the day when I worked for a big mutual, there top agent for that year, got fired for rebating half of a $750,000 commission. While not illegal in the state he did it, it was strickly against company policy. The sad thing is, without this commission he would have been #2 in the company and kept his retirement and book of business. A lot of money to leave behind just so you can be #1.
Rebating is a tricky slope, I'd avoid it as it never gets better, only worse as more find out. You'll have clients who are pissed they didn't get the deal and others who want more. Personally I work too hard to rebate and that has cost me. But I sleep ok.
Rebating is a tricky slope, I'd avoid it as it never gets better, only worse as more find out. You'll have clients who are pissed they didn't get the deal and others who want more. Personally I work too hard to rebate and that has cost me. But I sleep ok.
Borrowing money to pay premiums, usually for estate planning purposes. For some wealthy folks, they'd rather borrow money at 2-5% from a bank and leave their investments in place, rather than liquidating company stock, real estate, etc.
