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  1. #1
    LoraJL is offline Junior Member
    Join Date
    Feb 2009
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    Paying Referral Fees

    What is the name of your state (only U.S. law)? FL

    Is it alright for Insurance companies to pay referral fees for new clients? I am not an insurance agent but because of the type of work I do in the mortgage industry, I frequently run across folks that are in need of homeowner's insurance or are paying really high rates for their current coverage. ( mostly seniors)
    My question is: is it allowable for companies to pay a fee if I would refer someone to them and they open an account?

    I would not want to do anything unethical or illegal.

    Thank you for your help
  2. #2
    moburkes is offline Senior Member
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    Nov 2005
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    15,365
    In most states the answer is no, although I was just notified that it is now legal in AL, as long as the referrer receives a nominal fee whether or not the customer purchases the policy. Also, you asked specifically about an insurance company providing a fee to you, but it would be illegal if an insurance agent provided that fee to you.
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