500.1240 Payment or acceptance of commission, service fee, or valuable consideration.
199 words·~1 min read·
/mi/chapter-500/500-1240A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
500.1240 Payment or acceptance of commission, service fee, or valuable consideration.
Sec. 1240.
(1)An insurer or insurance producer shall not pay a commission, service fee, 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 chapter and is not so licensed.
(2)A person shall not accept a commission, service fee, or other valuable consideration for selling, soliciting, or negotiating insurance in this state if that person is required to be licensed under this chapter and is not licensed.
(3)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 chapter at the time of the sale, solicitation, or negotiation and was licensed at that time.
(4)An insurer or insurance producer may pay or assign commissions, service fees, 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 2024.
History: Add. 2001, Act 228 , Eff. Mar. 1, 2002
Popular Name: Act 218