Arizona Laws 20-298. Commissions
A. 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 article and is not so licensed.
Terms Used In Arizona Laws 20-298
- Business entity: means any corporation, association, partnership, limited liability company, limited liability partnership or other legal entity except an individual or sole proprietorship. See Arizona Laws 20-281
- Insurance producer: means a person required to be licensed under this article to sell, solicit or negotiate insurance. See Arizona Laws 20-281
- 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 if the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers. See Arizona Laws 20-281
- Person: means an individual or a business entity. See Arizona Laws 20-281
- Sell: means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurer. See Arizona Laws 20-281
- Solicit: means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company. See Arizona Laws 20-281
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 that person is required to be licensed under this article and is not so licensed.
C. 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 article 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 20-451.
E. This section does not affect payment of the regular salaries due to a licensee’s employees or the distribution in the regular course of business of compensation and profits among a business entity‘s members or other owners.