State RegulationsNY specificDifficulty 2/5
A licensed New York agent and a licensed colleague jointly work on a group health sale and agree to divide the commission. Under New York law, this arrangement is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §§2121 and 2128, the prohibition on commission sharing targets unlicensed persons — licensed producers remain free to divide commissions on jointly produced business. New York's rule protects the licensing standard, not the internal economics of licensed producers.
Why the other options are wrong
- B) Nothing in the New York Insurance Law bars licensed colleagues from splitting a commission on business they both produced.
- C) No advance approval from the Superintendent is required for a split between two licensees; that is not part of the statutory scheme.
- D) The client's consent is not the touchstone — the legality of a commission split turns on the licensure of the participants.
Memory hook
Licensees may split; unlicensed friends may not.