§431:9-231 Sharing commissions. (a) No insurer, general agent, subagent, or solicitor shall compensate or offer to compensate in any manner any person, other than those specified in subsection (b), for procuring or in any manner helping to [6~cure applications for or to place insurance in this State; provided that this provision shall not prohibit the payment of compensation not contingent upon volume of the business transacted, in the form of salaries to the regular employees of any such licensee.
(b) (1) An insurer may so compensate only the following:
(A) A licensed general agent appointed by it;
(B) A licensed subagent appointed by it in accordance with section 431:9-103;
(C) A licensed solicitor appointed by it in accordance with section 431:9-104; or
(D) A licensed subagent or a licensed solicitor appointed by a general agent under subparagraph (A); provided that a written agreement between the insurer and such general agent authorizing such compensation has been executed.
(2) A general agent may so compensate only the following:
(A) Licensed subagents appointed by the general agent;
(B) Licensed solicitors appointed by the general agent;
(C) Any general agent who is licensed in this State for the same class of insurance;
(D) Any licensed nonresident agent or broker; or
(E) A life only or life and disability insurance licensed subagent or a licensed solicitor appointed by a general agent under subparagraph (C); provided that a written agreement between the general agent and the general agent under subparagraph (C) authorizing such compensation has been executed.
(3) A subagent may so compensate only licensed solicitors appointed by the subagent.
(4) A surplus lines broker may so compensate only the following:
(A) Licensed subagents appointed by the broker;
(B) Licensed solicitors appointed by the broker; or
(C) Any general agent who is licensed in this State for the class of insurance involved.
(c) No such licensee shall be promised or allowed any compensation on account of the procuring of applications for or the placing of classes of insurance which the licensee is not licensed to procure or place.
(d) The commissioner may suspend or revoke the licenses of all licensees participating in any violation of this section. [L 1987, c 347, pt of §2; am L 1988, c 98, §1]