2006 Utah Code - 31A-23a-504 — Sharing commissions.

     31A-23a-504.   Sharing commissions.
     (1) (a) Except as provided in Subsection 31A-15-103(3), a licensee under this chapter or an insurer may only pay consideration or reimburse out-of-pocket expenses to a person if the licensee knows that the person is licensed under this chapter to act as a producer, limited line producer, customer service representative, consultant, managing general agent, or reinsurance intermediary in Utah as to the particular type of insurance.
     (b) A person may only accept commission compensation or other compensation as a producer, limited line producer, customer service representative, consultant, managing general agent, or reinsurance intermediary that is directly or indirectly the result of any insurance transaction if that person is licensed under this chapter to act as a producer, limited line producer, customer service representative, consultant, managing general agent, or reinsurance intermediary as to the particular type of insurance.
     (2) (a) Except as provided in Section 31A-23a-501, a consultant may not pay or receive any commission or other compensation that is directly or indirectly the result of any insurance transaction.
     (b) A consultant may share a consultant fee or other compensation received for consulting services performed within Utah only with another consultant licensed under this chapter, and only to the extent that the other consultant contributed to the services performed.
     (3) This section does not prohibit the payment of renewal commissions to former licensees under this chapter, former Title 31, Chapter 17, or their successors in interest under a deferred compensation or agency sales agreement.
     (4) This section does not prohibit compensation paid to or received by a person for referral of a potential customer that seeks to purchase or obtain an opinion or advice on an insurance product if:
     (a) the person is not licensed to sell insurance;
     (b) the person sells or provides opinions or advice on the product; and
     (c) the compensation does not depend on whether the referral results in a purchase or sale.
     (5) In selling any policy of title insurance, no sharing of commissions under Subsection (1) may occur if it will result in an unlawful rebate, or in compensation in connection with controlled business, or in payment of a forwarding fee or finder's fee. A person may share compensation for the issuance of a title insurance policy only to the extent that he contributed to the search and examination of the title or other services connected with it.
     (6) This section does not apply to bail bond producers or bail enforcement agents as defined in Section 31A-35-102.

Renumbered and Amended by Chapter 298, 2003 General Session