NAC686A.335. Agreement for consultation or related advice: Provisions for commissions and fees; written contract.

     1. Except as otherwise provided in subsection 2, an agreement for consultation or related advice which is entered into by an agent who is also licensed as a broker of casualty, property or surety insurance may, with respect to property, casualty or surety insurance that the agent sells to businesses, provide for the agent to receive:

     (a) A commission paid by the insurer;

     (b) A fee paid by the client; or

     (c) A combination of a commission paid by the insurer and a fee paid by the client.

     2. The provisions of subsection 1 do not authorize an agent to receive a commission or fee that is otherwise prohibited by a different agreement between the agent and insurer.

     3. If an agent and a client enter into an agreement pursuant to subsection 1 that provides for the agent to receive a fee, the agreement must be expressed in the form of a written contract. The written contract must:

     (a) Set forth the full amount of compensation that the agent will receive pursuant to the agreement;

     (b) Be signed by the agent and the client before the completion of any transaction that will, pursuant to the agreement, entitle the agent to receive compensation; and

     (c) Be retained by the agent for not less than 5 years.

     (Added to NAC by Div. of Insurance by R089-98, eff. 9-25-98)