Arizona Revised Statutes

Ariz. Rev. Stat. § 20-298 (2026)

Commissions

✓ current as of May 2026

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20-298. Commissions

A. An insurer or insurance producer shall not pay a commission, service fee, brokerage or other valuable consideration to a person for selling, soliciting or negotiating insurance in this state if that person is required to be licensed under this article and is not so licensed.

B. A person shall not accept a commission, service fee, brokerage or other valuable consideration for selling, soliciting or negotiating insurance in this state if that person is required to be licensed under this article and is not so licensed.

C. Renewal or other deferred commissions may be paid to a person for selling, soliciting or negotiating insurance in this state if the person was required to be licensed under this article at the time of the sale, solicitation or negotiation and was so licensed at that time.

D. An insurer or insurance producer may pay or assign commissions, service fees, brokerages or other valuable consideration to an insurance agency or to persons who do not sell, solicit or negotiate insurance in this state, unless the payment would violate section 20-451.

E. This section does not affect payment of the regular salaries due to a licensee's employees or the distribution in the regular course of business of compensation and profits among a business entity's members or other owners.

Notes of Decisions

Cited in 1 case, 2007–2007 · leading case: Van Zanen v. Qwest Wireless, L.L.C., 550 F. Supp. 2d 1261 (D. Colo. 2007).

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Van Zanen v. Qwest Wireless, L.L.C., 550 F. Supp. 2d 1261 (D. Colo. 2007). · cites it 2× “§ 20-282; violation of Arizona’s statute prohibiting compensation paid to an unlicensed insurance producer, Ariz.Rev.Stat. § 20-298; declaratory and injunctive relief; and unjust enrichment and imposition of a constructive trust.”

— Ariz. Rev. Stat. § 20-298(B) — 1 case

Van Zanen v. Qwest Wireless, L.L.C., 550 F. Supp. 2d 1261 (D. Colo. 2007). “§ 20-282; violation of Arizona’s statute prohibiting compensation paid to an unlicensed insurance producer, Ariz.Rev.Stat. § 20-298; declaratory and injunctive relief; and unjust enrichment and imposition of a constructive trust.”

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