What premium situation qualifies a non-licensed individual to receive commissions?

A non-licensed individual can receive commissions on a renewal premium when they were originally licensed. This is because when a person is licensed, they have fulfilled the necessary requirements to sell insurance and earned commissions from their sales during that licensing period. Renewal premiums relate to the continuation of the insurance policy that the agent initially sold while they had their license.

In many jurisdictions, including Rhode Island, insurance regulations allow for compensation on renewals even if the individual is no longer actively licensed, as these premiums are tied to the original sale. The renewal commissions recognize the agent’s initial work in placing the policy and ensuring that the client continues coverage.

While the other situations may seem plausible, they do not universally meet the requirements for commission payment in the context of non-licensed individuals. Therefore, this option aligns with the standard practices in the insurance industry regarding renewals and licensing.