LegalFix

Section 177 - Unlicensed Persons; Compensation; Penalty

MA Gen L ch 175 § 177 (2019) (N/A)
Copy with citation
Copy as parenthetical citation

Section 177. No company and no officer, agent or employee thereof, and no duly licensed insurance producer, shall, directly or indirectly, pay or allow or offer or agree to pay or allow compensation or anything of value to any person, excepting an officer of a domestic company acting under section one hundred and sixty-five, for acting in this commonwealth as an insurance producer, as defined in section 162H who is not then duly licensed as an insurance producer. Nothing in this section shall prohibit the payment of additional compensation in the form of referral fees to unlicensed employees of a licensed insurance producer or licensed business entity producer for customers referred to the licensed insurance producer or licensed business entity producer by the unlicensed employees in connection with the purchase of insurance. Nothing in this section shall be deemed to prohibit the payment of a commission or brokerage fee by a special insurance broker to a duly licensed insurance producer in connection with insurance negotiated under the authority of section one hundred and sixty-eight in an insurance company not licensed to transact business in the commonwealth. Nothing in this section shall affect sections one hundred and eighty-two to one hundred and eighty-four, inclusive. Nothing in this section shall prohibit the payment to the holder of a group policy of accident and health insurance issued pursuant to clause (j) of the first sentence of subdivision (A) of section one hundred and ten or of involuntary unemployment insurance issued pursuant to clause (a) of section one hundred and seventeen D or of life insurance issued pursuant to clause (c) of the first paragraph of section one hundred and thirty-three, for which rates are determined pursuant to section one hundred and seventeen C or pursuant to section one hundred and seventeen D, of a service charge; provided, however, that where said holder is offering or enrolling obligors in said group policy without being licensed pursuant to section one hundred and sixty-three, except where no identifiable charge is made to the insured, said holder is deemed to be in the business of insurance solely for the purposes of chapter one hundred and seventy-six D; provided, further, that any action by the commissioner under said chapter one hundred and seventy-six D shall be limited to said holder's activities with respect to said insurance products; and, provided further, that the licensed entity or entities which marketed said insurance products to said holder shall provide training to said holder in the offering of said insurance products and at least annually shall review the activities of said holder to assure that said insurance products are being properly administered. Nothing in the preceding sentence shall permit licensing of insurance agents where it would otherwise be prohibited nor shall anything in the preceding sentence be deemed to limit or restrict any other legal obligations and responsibilities of licensed entities. Nothing in this section shall prohibit the payment of a service charge to the holder of a Class 1 or Class 2 license authorized under the provisions of section fifty-eight of chapter one hundred and forty by a company or its officers, agents or employees authorized to provide insurance protection against the mechanical failure or mechanical breakdown of a motor vehicle or loss of use caused thereby, authorized under the provisions of section fifty-four C. Whoever knowingly violates any provision of this section shall be punished by a fine of not less than $50 nor more than $500.

LegalFix

Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.

LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.

The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.

You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.

The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.

Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.

We have updated our Terms of Service, Privacy Policy, and Disclosures. By continuing to browse this site, you agree to our Terms of Service, Privacy Policy, and Disclosures.
Section 177 - Unlicensed Persons; Compensation; Penalty