Is it legal to pay for referrals in the auto insurance industry?
filed in finance on Jan.27, 2010
Is it legal to pay for referrals in the auto insurance industry?
I want to pay people for referring me a customer who purchases an auto insurance policy from me. Is this legal? Are there any detail I should know about before starting this?
January 27th, 2010 on 1:37 pm
Best Answer – Chosen by Voters I was licensed as an agent in 26 states and it was never legal in any of them. Be very very careful. Check with the department of insurance in your state.
January 27th, 2010 on 1:37 pm
you should make sure of your state law.for MI law says:REFERRAL FEES – Sections 1207(3); 1240(4) May an unlicensed individual provide a list of referrals to a licensed producer for a fee? Yes, so long as payment of the referral fee is not contingent upon a referral applying for or purchasing a policy. Is there a limit on the dollar amount or value of the gift or service offered as a referral fee? No, so long as payment of the referral fee does not violate MCL 500.2024, which prohibits rebating or induce — Reem AlnunuInsurance AgentGLIGA Insurancereemalnunu@yahoo.com
January 27th, 2010 on 1:37 pm
Did you pass your licensing test? This subject is ALWAYS on the licensing test!The legality of it varies by state. No one can tell you, unless you edit your question and add your state.