Which of the following is a legally permissible way to share commissions?

• A. Sharing with a client
• B. Sharing with a non-licensed person
• C. Sharing with a licensed agent in the same line
• D. Sharing with a licensed agent in a different line

Answer: (C)

Commissions may be paid only to individuals who are licensed in the same line of authority as the producer earning them. For life, accident, and health products, that means another licensed LAH agent. This ensures the recipient is properly qualified to sell and handle those products. Sharing with a client or with a non-licensed person would be illegal, as would sharing with a licensed agent in a different line unless that agent also holds the appropriate license and appointment in that line. Therefore, the permissible option is sharing with a licensed agent in the same line.