Under what circumstance may a broker share a commission?

A broker may share a commission only with licensed agents or brokers because this practice is regulated to ensure that only individuals who have met the necessary licensing requirements are involved in financial transactions related to insurance. Sharing commissions with licensed personnel maintains the integrity of the insurance market and protects consumers by ensuring that all parties involved in the transaction are knowledgeable and adhere to state insurance laws.

In contrast, sharing commissions with unlicensed individuals is not permissible as it can lead to unregulated practices and potential fraud. It is also inappropriate to limit commission sharing solely to past clients, as this does not align with typical commission-sharing regulations within the industry. Finally, brokers cannot share commissions directly with insurers, as this would conflict with the standard practice of maintaining independence between brokers and insurance providers.