Are finders fees trial contained by califonia when selling insurance?
I'd call the CA Insurance Department and ask. Many states don't allow it - but I"m not sure roughly speaking CA in particular.
Generally no, inducements are not allowed. However, if you are paying someone for referring business to you, to hold on to from getting into trouble, follow two simple rules: LOW (as in amount/value) and CONSISTENT (as in, afford everyone the same thing). These rules are completely different if you're a registered rep governed underneath FINRA, in which case, NO, you can't do it. If you're merely life/health/P/C licensed, check with the state of CA.
Answers: A finders fee is illegal per:
CALIFORNIA INSURANCE CODE SECTION 750-754
750. (a) Except as provided surrounded by Section 750.5, any person acting individually or through his or her employees or agents, who engage in the practice of processing, presenting, or negotiating claims, including claims lower than policies of insurance, and who offers, delivers, receive, or accepts any rebate, refund, commission, or other consideration, whether within the form of money or otherwise, as compensation or inducement to or from any person for the referral or procurement of clients, cases, patients, or customers, is guilty of a crime. http://www.leginfo.ca.gov/cgi-bin/displa...