§ 27-2.4-15 - Commissions. - Rhode Island Statutes

SECTION 27-2.4-15

   § 27-2.4-15  Commissions. – (a) No insurer or insurance producer shall pay, directly or indirectly, anycommission, service fee, brokerage, or other valuable consideration to anyperson for services as an insurance producer unless the person performing theservice held a valid license regarding the class or classes of insurance as towhich the service was rendered at the time the service was performed. Noperson, other than a person properly licensed in accordance with this chapterat the time the person performs services as an insurance producer, shall acceptany commissions, service fee, brokerage, or other valuable consideration forthe services. Acceptance of the consideration shall constitute operatingwithout a license. This section shall not prevent payment or receipt of renewalor other deferred commissions to or by any person entitled to the payment orreceipt under this chapter.

   (b) No person shall accept a commission, service fee,brokerage or other valuable consideration for selling, soliciting ornegotiating insurance in this state if that person is required to be licensedunder this chapter and is not licensed.

   (c) Renewal or other deferred commissions may be paid to aperson for selling, soliciting or negotiating insurance in this state if theperson was required to be licensed under this chapter at the time of the sale,solicitation or negotiation and was licensed at that time.

   (d) An insurer or insurance producer may pay or assigncommissions, service fees, brokerages or other valuable consideration to aninsurance agency or to persons who do not sell, solicit or negotiate insurancein this state, unless the payment would violate §§ 27-4-6, 27-6-46,27-8-7, 27-9-44 and 27-29-4 of the general laws of this state.