Sec. 38a-734. (Formerly Sec. 38-92h). Certified consultants not to receive payments from insurers or producers for sale of insurance. Exemption for registration under the federal Investment Advisers A
Sec. 38a-734. (Formerly Sec. 38-92h). Certified consultants not to receive payments from insurers or producers for sale of insurance. Exemption for registration
under the federal Investment Advisers Act. Disclosures. No person, acting in the
capacity of a certified insurance consultant and as such serving any person, firm, association, organization or corporation, not engaged in the insurance business, for compensation paid or to be paid by the person served, shall directly or indirectly receive any part
of any commission or compensation paid by any insurer or producer in connection with
the sale or writing of any insurance which is within the subject matter of any such service.
The provisions of this section shall not apply to an insurance producer who is an advisory
representative of a registered investment adviser registered pursuant to the Investment
Advisers Act of 1940, 15 USC 80b-1, et seq., provided the insurance producer makes
full disclosure in a written memorandum, signed by the party to be charged, which
specifies the amount of such fee or compensation for services performed pursuant to
the Investment Advisers Act of 1940 and which also discloses that a commission may
be paid to the insurance producer from the sale of any insurance. Any person violating
the provisions of this section shall be fined not less than two hundred fifty or more than
two thousand five hundred dollars or be imprisoned not less than thirty or more than
ninety days, or both.
(1969, P.A. 817, S. 6; 1971, P.A. 292, S. 5; P.A. 94-160, S. 12, 24; P.A. 96-48, S. 2; P.A. 08-178, S. 29.)
History: 1971 act specified applicability to "certified" consultants; Sec. 38-92h transferred to Sec. 38a-734 in 1991;
P.A. 94-160 substituted "producer" for "agent of any insurer" to accurately reflect the modernization and nomenclature
of the industry, effective January 1, 1996; P.A. 96-48 exempted producers who provide the prescribed disclosures and are
advisory representatives of an investment advisor registered under the federal Investment Advisers Act; P.A. 08-178 made
technical changes and increased minimum fine from $50 to $250 and maximum fine from $500 to $2,500.