CHAPTER 275

(SB 49)

Insurance producer may not pay a referral fee.

         ENTITLED, An Act to  revise certain provisions regarding payments or assignments by insurance producers for referrals.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That § 58-30-174 be amended to read as follows:

     58-30-174.   No insurer or insurance producer may pay or assign a commission, service fee, brokerage fee, or any other valuable consideration for a referral to any person not appropriately licensed pursuant to this chapter unless the payment or assignment is a fixed dollar amount that is not related to the amount of commission or premium for an insurance transaction and that is not dependent upon whether the referral results in a transaction.

     Signed February 1, 2005

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