Hannah is an insurance agent and she recently placed a lifeinsurance policy for a new client who
Question:
Hannah is an insurance agent and she recently placed a lifeinsurance policy for a new client who was referred by a financial planner, Armando. Hannah has a referral arrangement with Armando and under the arrangement, she pays Armando a fee for each sale she makes to a client referred by him. Hannah also has an arrangement with Timothy, a licensed insurance agent. At Hannah's request, Timothy assists Hannah with the application in exchange for splitting the commission on the policy. Which of the following is CORRECT?
a)Commission sharing is not allowed and Hannah is in violation of the code of conduct.
b)Hannah's referral arrangement is permitted if she discloses the arrangement to the client.
c)Timothy must be appropriately licensed in order for Hannah to split commissions with him.
d)Hannah may split commissions with either Timothy or Armando if she discloses the arrangement to the client.
