Bill > S272

This bill clarifies the rules for insurance producers (licensed insurance agents) when exchanging business between each other. It defines "exchange of business" as the process of forwarding insurance business from one licensed producer to another, where both producers are appointed with an insurer that can accommodate the risk under favorable conditions for the insured. The bill allows producers to exchange business and split commissions if they both meet specific requirements: they are licensed in all relevant insurance lines, are disclosed on the insurance application, and have a good-faith belief that the exchange complies with regulations. The bill also specifies that these rules do not limit exchanges in specialty lines, nonstandard or professional liability insurance, or risk-sharing plans. Additionally, the bill permits commissions to be assigned or paid to agency principals who are owners, shareholders, partners, directors, employees, or agents when business is placed on behalf of their agency. The legislation becomes effective when it becomes law and applies to insurance contracts entered into or renewed on or after that date.

https://www.ncleg.gov/BillLookUp/2025/S272