§ 58-33-82. Commissions. - North Carolina Statutes

§ 58‑33‑82. Commissions.

(a)        An insurancecompany or insurance producer shall not pay a commission, service fee, or othervaluable consideration to a person for selling, soliciting, or negotiatinginsurance in this State if that person is required to be licensed under thisArticle and is not so licensed.

(b)        A person shall notaccept a commission, service fee, brokerage, or other valuable considerationfor selling, soliciting, or negotiating insurance in this State if that personis required to be licensed under this Article and is not so licensed.

(c)        Renewal or otherdeferred commissions may be paid to a person for selling, soliciting, ornegotiating insurance in this State if the person was required to be licensedunder this Article at the time of the sale, solicitation, or negotiation andwas so licensed at that time.

(d)        Except as providedin subsection (e) of this section, only agents who are duly licensed withappropriate company appointments, licensed brokers, licensed limited linesproducers, or licensed limited representatives may accept, directly orindirectly, any commission, fee, or other valuable consideration for the sale,solicitation, or negotiation of insurance.

(e)        Commissions, fees,or other valuable consideration for the sale, solicitation, or negotiation ofinsurance may be assigned or directed to be paid in the followingcircumstances:

(1)        To a business entityby a person who is an owner, shareholder, member, partner, director, employee,or agent of that business entity.

(2)        To a producer inconnection with renewals of insurance business originally sold by or throughthe licensed person or for other deferred commissions.

(3)        In connection withthe indirect receipt of commissions in circumstances in which a license is notrequired under G.S. 58‑33‑26(n). (2001‑203, s. 23; 2004‑199, s. 20(e).)