Referral Fee
- Thread starter wealthpro
- Start date
My understanding is that you should also be licensed in that state.
I won't pay referrals to someone w/o a w-9 and their license in the writing state.
- 5,941
To earn a split or an over-ride, all parties have to be licensed in most States to be paid on . . .
Overrides are different and vary by both carrier and state.
That's all outlined by the carrier PLMA rules.
Referral splits are more gray but making sure all parties are state licensed should keep you out of hot water with regulators, but maybe not the carrier.
- 24,978
There are different split arrangements done everyday.
- 4,576
Some carriers have written rules in your selling agreement that all compensation splits or anyone being paid by the producer needs to be disclosed on the application. Many then may require the other person to also be licensed & appointed.
If you are not licensed in the state, you are considered unlicensed & therefor cannot receive compensation based on a sale & would have to be paid for any & all referrals, even if they dont result in a sale. Only a licensed producer can receive commission from another agent for sales/cases
If you are not licensed in the state, you are considered unlicensed & therefor cannot receive compensation based on a sale & would have to be paid for any & all referrals, even if they dont result in a sale. Only a licensed producer can receive commission from another agent for sales/cases
Yep. It's similar to a broker/dealer rep selling away from an indexed annuity "approved list".
Normally 100% legal for that rep to write with the carrier. The b/d may have a differing opinion.
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