Referrel Fee in LA for Life Insuranc e?

[Agent001]

Does anyone know if a licensed agent is allowed to offer a client (non-licensed) a referral fee or gift card for referrals after a life insurance sale in Louisiana? After the sale was made the client offered to send more referrals and asked if there would be a referral fee or can I send a gift card?

Thanks!

 

[adjusterjack]

Best place to ask that question is the Louisiana Department of Insurance.

Home (state.la.us)

 

[Agent001]

Thanks adjusterjack. I spoke to them and they referred me some statutes. It doesn't look like it's allowed to give a gift card for a referral to a client (non-licensed agent) but if anyone knows different please don't hesitate post.

 

[fed up]

Figure out an agreed upon amount and pay the person. DO NOT WRITE THIS OFF AS AN EXPENSE. CASH IS KING.

 

[Tahoe Ray]

Thanks adjusterjack. I spoke to them and they referred me some statutes. It doesn't look like it's allowed to give a gift card for a referral to a client (non-licensed agent) but if anyone knows different please don't hesitate post.

You can compensate non-licensed entities in most states but it has to be billed as a lead.

Meaning, you pay for every referral, regardless of if you get business or not.

This is not legal/insurance advice but I have seen it done this way in the past and it has been very fruitful. Just keep in mind that the compensation needs to be in line with what a lead would cost. You can't just write big checks for referrals that translate to sales and then send nothing on ones that don't.

I hope that helps.

 

[Agent001]

ThanksTahoe Ray. That makes sense and helps.