KRS 304.9-425: Payment or acceptance of commission, brokerage, or other valuable

consideration -- Exception.

(1) No insurer, financial institution, agent, surplus lines broker, adjuster, administrator,

reinsurance intermediary broker or manager, rental vehicle a gent or managing

employee, life settlement broker or provider, or consultant shall pay, directly or

indirectly, any commission, brokerage, or other valuable consideration to any

individual or business entity for services as an agent, surplus lines broker, adjuster,

administrator, reinsurance intermediary broker or manager, rental vehicle agent or

managing employee, life settlement broker or provider, or consultant within this

state, unless the individual or business entity held at the time the services were

performed a valid license for that line of insurance as required by the laws of this

state for the services.

(2) No individual or business entity, other than an individual or business entity duly

licensed by this state as an agent, surplus lines broker, a djuster, administrator,

reinsurance intermediary broker or manager, rental vehicle agent or managing

employee, life settlement broker or provider, or consultant at the time the services

were performed, shall accept any commission, brokerage, or other valua ble

consideration for those services, unless the individual or business entity is licensed

at the time the services were performed, if a license is required by law.

(3) This section shall not prevent payment or receipt of renewal or other deferred

commissions to or by any individual or business entity entitled under this section.

(4) Services as an agent, surplus lines broker, adjuster, administrator, reinsurance

intermediary broker or manager, rental vehicle agent or managing employee, or

consultant within this state shall not include a referral by an unlicensed person of a

consumer to a licensed agent, surplus lines broker, adjuster, administrator,

reinsurance intermediary broker or manager, rental vehicle agent or managing

employee, or consultant that doe s not include a discussion of specific insurance

policy terms and conditions.

(5) An insurer, financial institution, agent, surplus lines broker, adjuster, administrator,

reinsurance intermediary broker or manager, rental vehicle agent or managing

employee, or consultant may pay any compensation, fee, or other consideration to

an individual not licensed to sell insurance for the referral of a consumer to a

licensed individual, only if the consideration is paid regardless of whether the

insurance coverage is sold to the consumer.