Kansas Statutes 40-4910. Same; commissions, service fees or brokerage fees prohibited; exceptions
(a) No insurance company or insurance agent shall 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 act and is not so licensed.
(b) No person shall 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 act and is not so licensed.
Terms Used In Kansas Statutes 40-4910
- agent: include an "insurance producer" or "producer" when the context so requires. See Kansas Statutes 40-4902
- Insurance: means any of the lines of authority specified in Kan. See Kansas Statutes 40-4902
- Negotiate: means the act of conferring directly with or offering advice directly to any purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of such contract, provided that the person engaged in such act either sells insurance or obtains insurance from insurers for purchasers. See Kansas Statutes 40-4902
- Person: means an individual or a business entity. See Kansas Statutes 40-4902
- Sell: means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company. See Kansas Statutes 40-4902
- Solicit: includes any attempt to sell insurance or asking or urging a person to apply for any particular kind of insurance from any particular insurance company. See Kansas Statutes 40-4902
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Kansas Statutes 77-201
(c) Renewal or other deferred commissions may be paid to a person for selling, soliciting or negotiating insurance in this state if:
(1) Such person was required to be licensed under this act at the time the sale, solicitation or negotiation of insurance occurred; and
(2) such person was licensed as required by this act when the sale, solicitation or negotiation of insurance occurred.
(d) An insurance agent may place a kind or kinds of business, for which such insurance agent is licensed pursuant to this act, with an insurer for which such insurance agent is not an agent, by placing such business through an agent of such insurer.
(e) An insurance agent may divide or share in commissions with other agents licensed to write the same kind or kinds of insurance provided the solicitation of such business shall be subject to subsection (d).
(f) Any insurance agent may pay or assign a commission, service fee, brokerage or any other valuable consideration to an insurance agency or any financial holding company which does not sell, solicit or negotiate insurance in this state unless such payment or assignment violates any provision of Kan. Stat. Ann. § 40-2404, and amendments thereto.