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With whom can an agent legally share commissions?

a) Another agent from a different insurance company
b) A non-licensed assistant
c) A policyholder
d) A beneficiary

1 Answer

5 votes

Final answer:

An agent can share commissions with another agent from a different insurance company, but not with a non-licensed assistant, policyholder, or beneficiary.

Step-by-step explanation:

An agent can legally share commissions with another agent from a different insurance company. This is known as a split commission arrangement and is a common practice in the insurance industry.

However, a non-licensed assistant cannot legally share commissions with an agent. Non-licensed assistants are not authorized to sell insurance or receive compensation for their services.

A policyholder and a beneficiary are also not eligible to receive commissions from an agent. Commissions are typically paid only to licensed agents who are actively involved in selling insurance policies.

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