Which statement about the payment of commissions is NOT correct?

The statement indicating that a producer cannot share commissions with a licensed nonresident producer is not accurate. In fact, a producer is permitted to share commissions with another licensed producer, regardless of whether that producer is a resident or a nonresident of Colorado. This practice is a common aspect of the insurance industry, allowing producers to collaborate and work together, irrespective of their state of licensure.

The regulatory framework facilitates this arrangement to ensure that consumers receive appropriate services and products from licensed professionals, promoting cooperation across state lines. On the other hand, it is important to note that producers are prohibited from sharing commissions with unlicensed individuals, as it could undermine regulatory compliance and consumer protection. Similarly, charging additional fees for soliciting and procuring insurance is generally not allowed, as all remuneration for these activities should be covered by the commissions agreed upon.