North Carolina General Statutes 58-33-82. Commissions
(a) An insurance company, insurance producer, or limited representative shall not pay a commission, service fee, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in this State if that person is required to be licensed under this Article and is not so licensed.
(b) A person shall not accept a commission, service fee, brokerage, or other valuable consideration for selling, soliciting, or negotiating insurance in this State if that person is required to be licensed under this Article and is not so licensed.
(c) Renewal or other deferred commissions may be paid to a person for selling, soliciting, or negotiating insurance in this State if the person was required to be licensed under this Article at the time of the sale, solicitation, or negotiation and was so licensed at that time.
(d) Except as provided in subsection (e) of this section, only insurance producers who are duly licensed with appropriate company appointments, licensed limited lines producers, or licensed limited representatives may directly accept any commission, fee, or other valuable consideration for the sale, solicitation, or negotiation of insurance.
(d1) Insurance producers may indirectly accept any commission, fee, or other valuable consideration for business brokered through an insurance producer that is appropriately appointed.
(e) Commissions, fees, or other valuable consideration for the sale, solicitation, or negotiation of insurance may be assigned or directed to be paid in the following circumstances:
(1) To a business entity by a person who is an owner, shareholder, member, partner, director, employee, or agent of that business entity.
Terms Used In North Carolina General Statutes 58-33-82
- Agent: means a person licensed to solicit applications for, or to negotiate a policy of, insurance. See North Carolina General Statutes 58-33-10
- Business entity: means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. See North Carolina General Statutes 58-33-10
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- Insurance: means any of the kinds of insurance in N. See North Carolina General Statutes 58-33-10
- License: means a document issued by the Commissioner authorizing a person to act as an insurance producer for the lines of authority specified in the document. See North Carolina General Statutes 58-33-10
- Limited representative: means a person who is authorized by the Commissioner to solicit or negotiate contracts for the particular lines of authority identified in N. See North Carolina General Statutes 58-33-10
- Person: means an individual or a business entity, but does not mean a county, city, or other political subdivision of the State of North Carolina. See North Carolina General Statutes 58-33-10
- producer: includes an agent and a broker. See North Carolina General Statutes 58-33-10
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
(2) To a producer or limited representative, in connection with renewals of insurance business originally sold by or through the licensed person or for other deferred commissions.
(3) In connection with the indirect receipt of commissions in circumstances in which a license is not required under N.C. Gen. Stat. § 58-33-26(n). (2001-203, s. 23; 2004-199, s. 20(e); 2022-46, s. 13(a).)