Delaware § 1714 Commissions

Delaware Statutes

§ 1714 — Commissions

Delaware § 1714

Title18

PartInsurance

Ch. 17LICENSING OF PROFESSIONAL INSURANCE PERSONNEL

This text of Delaware § 1714 (Commissions) is published on Counsel Stack Legal Research, covering Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Del. Code tit. 18, § 1714 (2026).

Text

(a)An insurance company or insurance producer shall not pay a commission, service fee, brokerage or other valuable consideration to a person for selling, soliciting or negotiating insurance in this State if that person is required to be licensed under this chapter and is not so licensed.

(b)A person shall not accept a commission, service fee, brokerage or other valuable consideration for selling, soliciting or negotiating insurance in this State if that person is required to be licensed under this chapter and is not so licensed.

(c)Renewal or other deferred commissions may be paid to a person for selling, soliciting or negotiating insurance in this State if the person was required to be licensed under this chapter at the time of the sale, solicitation or negotiation and was so license

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(a) An insurance company or insurance producer shall not pay a commission, service fee, brokerage or other valuable consideration to a person for selling, soliciting or negotiating insurance in this State if that person is required to be licensed under this chapter and is not so licensed.

(b) A person shall not accept a commission, service fee, brokerage or other valuable consideration for selling, soliciting or negotiating insurance in this State if that person is required to be licensed under this chapter and is not so licensed.

(c) Renewal or other deferred commissions may be paid to a person for selling, soliciting or negotiating insurance in this State 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.

(d) An insurer or insurance producer may pay or assign commissions, service fees, brokerages or other valuable consideration to an insurance agency or to persons who do not sell, solicit or negotiate insurance in this State, unless the payment would violate §§ 2303 and 2304 of this title.

(e) No producer acting as a consultant may accept any fee, commission or other consideration from an insurer for any activity for which the producer acting as a consultant has received or will receive a fee from the producer’s client.

(f) An insurer or insurance producer shall not pay a commission, service fee, brokerage or other valuable consideration to a person for selling, soliciting or negotiating insurance in this State if that person is required to be licensed under this chapter and is not so licensed. Nothing in this section allows an insurer to pay commissions to a nonappointed insurance producer when an appointment is otherwise required.

(g) An unlicensed person who refers a customer or potential customer to an insurer or insurance producer and who does not discuss specific terms and conditions of a policy or give opinions or advice regarding insurance may be compensated for the referral, if the compensation:

(1) For each referral is:

a. Nominal;

b. On a 1-time basis; and

c. Fixed in amount by referral;

(2) Does not depend on whether the customer or potential customer purchases the insurance; and

(3) Is not contingent on the volume of insurance transacted.

The restrictions set forth in this provision shall not apply to commercial lines. Referral fees for commercial lines shall still be subject to subsection (d) of this section.

Legislative History

18 Del. C. 1953, § 1737; 56 Del. Laws, c. 380, § 1 ; 59 Del. Laws, c. 577, § 1 ; 65 Del. Laws, c. 142, §§ 22, 23 ; 70 Del. Laws, c. 186, § 1 ; 70 Del. Laws, c. 424, § 1 ; 73 Del. Laws, c. 80, § 1 ; 80 Del. Laws, c. 215, § 13