When two licensed agents work together, what is likely to happen regarding commissions?

Study for the Virginia Life Insurance Laws and Rules Exam. Use flashcards and multiple-choice questions with hints and explanations to prepare effectively. Get exam-ready now!

When two licensed agents collaborate on a case, it is common practice for them to share the commissions generated from the sale of life insurance policies. This typically occurs when one agent primarily handles the client relationship while the other may provide support, expertise, or referrals. As a result, both agents would benefit financially from the commission due to their combined efforts in securing the policy.

Commission sharing helps to incentivize teamwork and allows agents to leverage each other’s strengths, ultimately serving the client more effectively. Establishing a clear agreement on how commissions will be shared is important for transparency and to ensure both parties are compensated fairly based on their contributions. This practice aligns with the industry norms and supports the collaborative nature of insurance sales, fostering good business relationships among agents.

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