Iowa Code 522B.12 – Commissions
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1. 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 chapter and is not so licensed.
Terms Used In Iowa Code 522B.12
- Commission: means the real estate commission as established by chapter 543B. See Iowa Code 543C.1
- Insurance: means any of the lines of authority an insurer is authorized to sell in this state. See Iowa Code 522B.1
- Insurance producer: means a person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. See Iowa Code 522B.1
- Insurer: means a person engaged in the business of insurance who is regulated under chapter 508, 512B, 515, or 520. See Iowa Code 522B.1
- Negotiate: means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers. See Iowa Code 522B.1
- Person: means an individual or a business entity. See Iowa Code 522B.1
- Sale: means any sale, offer for sale, or attempt to sell or lease any land, to the public in this state, for cash or on credit. See Iowa Code 543C.1
- Sell: means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurer. See Iowa Code 522B.1
- solicitation: means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company. See Iowa Code 522B.1
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
2. 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 chapter and is not so 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 so licensed at that time.
4. An insurer or insurance producer may pay or assign a commission, service fee, brokerage, or other valuable consideration to an insurance agency or to a person who does not sell, solicit, or negotiate insurance in this state, unless the payment would violate chapter 507B.