Question

Lily, a licensee, has been referring her first-time home buyers to safe insurance company for all of their insurance needs. the insurance company has been providing lily with "motivation" in the form of cash to keep the referrals coming. which law or act prohibits this type of violation?

Answer 1

The Act which prohibits this kind of violation is RESPA.
RESPA stands for Real Estate Settlement Procedure Act. The Act forbids the inclusion of referral fees and kickbacks which increase the amount of money that consumers have to pay as settlement costs when buying properties.