Current through Register Vol. XLI, No. 15, April 12, 2024
Section 114-2-4 - Commissions and Commission Sharing4.1. An individual insurance producer may pay a commission for or on account of the sale, solicitation or negotiation in this state of insurance on property or risks in this state only to another licensed individual insurance producer.4.2. If an individual insurance producer who does not have an appointment from a particular insurance company ("non-appointed producer") refers an application for an insurance policy from such company to an individual insurance producer or managing general agent who does have an appointment with that company ("appointed producer"), and such a referral results in the issuance of an insurance policy, the appointed producer may share the commission with the non-appointed producer.4.3. Before a non-appointed producer refers an application for insurance to an appointed producer, he or she shall disclose to the applicant, on a form that is substantially similar to that set forth in Appendix A to this rule, that he or she is not authorized to bind coverage or to execute or issue a policy on the company's behalf.4.4. A non-appointed producer may solicit an application for insurance, prepare an application for such policy, collect and remit premiums and deliver the policy and any endorsements to the insured, but he or she may not sign or execute such policy or issue binders, endorsements or any other indication or coverage on behalf of that insurer. In any controversy between the insured or his or her beneficiary and the insurer issuing any policy upon such application, the non-appointed producer shall be regarded as the agent of the company and shall not be considered to be the agent of the insured for any purpose.