An insurance company may not compensate a licensed producer without what?

A licensed producer must have a written agreement with the insurance company to ensure that the terms of compensation and the relationship between the producer and the company are clearly defined and legally binding. This written agreement typically outlines the roles, responsibilities, commission structures, and other critical details necessary for both parties.

Having a written agreement protects both the producer's and the insurance company's interests, ensuring clarity and reducing misunderstandings that could arise from verbal agreements. Additionally, regulatory requirements may necessitate that such agreements be documented to maintain transparency and compliance with state laws related to insurance transactions.

In contrast, while verbal agreements may exist, they are often not enforceable in the same way as written contracts, which could lead to disputes regarding compensation. Similarly, license renewal pertains to maintaining the legal ability to act as an insurance producer, not necessarily to the compensation aspect. Corporate agreements may cover larger organizational structures but do not specifically pertain to the individual compensation relationship between a producer and an insurance company.