Sec. 38a-702l. Producer commissions.
Sec. 38a-702l. Producer commissions. (a) An insurance company 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 the person
is required to be licensed under sections 38a-702a to 38a-702r, inclusive, 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 the person
is required to be licensed under sections 38a-702a to 38a-702r, inclusive, and is not so
licensed.
(c) Renewal or other deferred commissions may be paid to a person, or an heir or
assignee of the person, for selling, soliciting or negotiating insurance in this state if the
person was required to be licensed under sections 38a-702a to 38a-702r, inclusive, 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 38a-825.
(P.A. 01-113, S. 12, 42; P.A. 04-77, S. 1.)
History: P.A. 01-113 effective September 1, 2002; P.A. 04-77 amended Subsec. (c) to add "or an heir or assignee of
the person".