What is the maximum referral fee allowable for an unlicensed person?

The correct answer is $25. In Tennessee, the law specifies that an unlicensed person may receive a referral fee for directing a potential client to a licensed insurance agent or broker, but this fee is capped at $25. This regulation is designed to ensure that unlicensed individuals do not receive excessive compensation for referrals, thereby maintaining consumer protection standards and the integrity of the insurance industry. By limiting the referral fee, the law helps to avoid potential conflicts of interest or unethical practices that could arise from unlicensed individuals receiving larger sums for referrals. It's important for those involved in the insurance industry, including agents and brokers, to understand these legal limits to ensure compliance with state regulations.