State RegulationsAZ specificDifficulty 1/5
May two Arizona producers, both properly licensed for life insurance, share the commission on a policy they place together?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
A.R.S. 20-298 restricts commissions to persons properly licensed, which licensed producers on both sides of the split satisfy. Two licensees dividing compensation for a sale they worked together is lawful; the statute targets payment to unlicensed persons, not compensation among licensees.
Why the other options are wrong
- A) Wrong because nothing in A.R.S. 20-298 makes commissions personal and unshareable; the statute permits compensation among licensed producers.
- C) Wrong because no case-by-case Director approval is required for licensed producers to share compensation under A.R.S. 20-298.
- D) Wrong because the sharing rules do not depend on insurer employment; licensure is the only criterion under A.R.S. 20-298.
Memory hook
Licensed plus licensed = lawful split under 20-298.