With whom can a licensed agent share commissions?

A licensed agent can share commissions with a non-resident agent because both parties are legally authorized to conduct insurance business. Sharing commissions usually occurs when a non-resident agent is involved in a transaction that benefits from the primary agent's local knowledge or client base. This legal structure allows for collaboration and compensation among agents who are registered and licensed in different states, maintaining compliance with regulatory requirements.

Sharing commissions with a foreign agent or car dealer typically falls outside the rules governing licensed insurance transactions. Foreign agents may not have the same licensing and regulatory oversight in Florida, while car dealers generally do not possess the required insurance licenses to engage in commission-sharing arrangements with insurance agents. Similarly, while real estate agents often work in parallel with insurance agents, they usually do not qualify for direct commission-sharing related to insurance sales unless they hold the appropriate licenses.