20-298. Commissions
A. An insurer or insurance producer shall not pay a commission, service fee,
brokerage or other valuable consideration to a person for selling, soliciting or
negotiating insurance in this state if that person is required to be licensed under this
article and is not so licensed.
B. A person shall not accept a commission, service fee, brokerage or other valuable
consideration for selling, soliciting or negotiating insurance in this state if that
person is required to be licensed under this article and is not so licensed.
C. Renewal or other deferred commissions may be paid to a person for selling,
soliciting or negotiating insurance in this state if the person was required to be
licensed under this article at the time of the sale, solicitation or negotiation and was
so licensed at that time.
D. An insurer or insurance producer may pay or assign commissions, service fees,
brokerages or other valuable consideration to an insurance agency or to persons who do
not sell, solicit or negotiate insurance in this state, unless the payment would violate
section 20-451.
E. This section does not affect payment of the regular salaries due to a licensee's
employees or the distribution in the regular course of business of compensation and
profits among a business entity's members or other owners.
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