Under what condition can two producers share commissions?

Two producers can share commissions when they both are licensed in the same line of business. This ensures that both parties are legally authorized to engage in the specific practice related to the commission-sharing agreement. It also helps maintain compliance with industry regulations, which often require that individuals involved in revenue-sharing arrangements hold appropriate licenses relevant to the work being done.

This requirement is critical because sharing commissions between individuals who do not possess the necessary licenses for that line of business could violate licensing laws and ethical standards, leading to possible penalties or loss of licenses.

Other conditions, such as being employed by the same insurance company or having a written agreement, may facilitate collaboration or set the terms of commission sharing, but they do not inherently ensure the legality of sharing commissions if the producers aren't licensed accordingly. Similarly, while working in the same office might offer logistical convenience, it is not a legal requirement for sharing commissions under Maryland law.