New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 4 - LICENSING OF INSURANCE PROFESSIONALS
Part 2 - RESIDENT PRODUCERS AND OTHER RESIDENT LICENSES
Section 13.4.2.12 - COMMISSIONS AND COMPENSATION
Universal Citation: 13 NM Admin Code 13.4.2.12
Current through Register Vol. 35, No. 18, September 24, 2024
A. Payment of commissions and compensation.
(1) An insurance company or insurance
producer shall not pay to a person nor shall a person accept a commission,
service fee, brokerage or other valuable consideration for selling, soliciting
or negotiating insurance in this state unless that person is licensed as
required by this state.
(2) Renewal
and other deferred commissions may be subsequently paid to a person for
selling, soliciting or negotiating insurance in this state if the person was
licensed as required at the time of the transaction.
(3) An insurer or insurance producer shall
not pay or assign commissions, service fees or other valuable consideration
derived from insurance of risks in this state to an individual or business
entity who is not licensed to sell, solicit or negotiate insurance in this
state.
B. Sharing of commissions and compensation.
(1)
Sharing in commissions and compensation between licensees shall be infrequent
and shall not be used to avoid appointment of producers by insurers.
(2) A licensee shall not receive a share in
commissions or compensation unless the licensee is licensed as to the type of
transaction or kind of insurance placed.
(3) An insurance producer shall share
commissions or compensation for or on account of the solicitation or
negotiation of insurance on individuals, property or risks in this state only
with a duly licensed producer appointed by the insurer with which the insurance
was placed, or with a duly licensed broker.
(4) The purchase price of a business entity
may include ongoing payments or partial payments of accruing commissions to or
on behalf of a former owner, whether or not the former owner maintains a
current insurance producer license.
(5) Payment of commissions, compensation or
other valuable consideration may be made to the personal representative, trust
or beneficiary of a deceased insurance producer or broker, or to the deceased
producer or broker's heirs or devisees if the estate has been distributed and
the decedent would otherwise be entitled to the payment.
C. Disclosure of compensation. When any insurance producer or any affiliate of the insurance producer receives any compensation from a customer for the placement of insurance or represents the customer with respect to placement of insurance, that producer or affiliate shall comply with the disclosure requirements set forth in Section 59A-12-29 NMSA 1978.
Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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