Paying unlawful consideration

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  • (a) It is unlawful for an insurer or an insurance producer to pay a commission, service fee, brokerage fee, or other type of consideration for selling, soliciting, or negotiating insurance in the Virgin Islands, if the person is required to be licensed under this chapter but is not licensed. However, renewal or other deferred commissions may be paid to the person for selling, soliciting, or negotiating insurance in the Virgin Islands if the person was required to be licensed under this chapter at the time of the sale, solicitation, or negotiation and was so licensed at that time.

  • (b) It is unlawful for an insurer or insurance producer to pay a referral fee or other compensation to an unlicensed person for any referral unless the compensation is a fixed dollar amount for each referral and does not depend on whether the person referred purchases an insurance product.

  • (c) The Commissioner shall suspend or revoke the license of all licensees participating in any violation of this section or impose a fine.


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