If two individuals are licensed in the same line with two different companies join together to sell a policy, the commission can be:

A. Shared between the two agents and the insuredB. Paid only to the agent who initiated the saleC. Withheld by the insuring company since this is an illegal practiceD. Shared between the two agents

Question

Imani Dougherty

Business

6 August, 00:34

If two individuals are licensed in the same line with two different companies join together to sell a policy, the commission can be:

A. Shared between the two agents and the insuredB. Paid only to the agent who initiated the saleC. Withheld by the insuring company since this is an illegal practiceD. Shared between the two agents

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Answers (1)

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Victor Stokes · Answer 1

The commission can be shared between the two agents.

Explanation:

Many times different companies collaborate with each other to sell a particular policy to maximize their profits. When there are two agents licensed in the same line and when the two companies collaborate to sell a policy then the commission is shared between the agents.

This is because they will work together for the profits and that when the two companies collaborate they become one to sell the policy. The agents work together and the commission is given to them as a whole. This is a common practice when two companies work together.