Alabama § 27-7-4.1 - Licenses - Required to Receive Payment, Etc.
Full text of Alabama Code of Alabama § 27-7-4.1 — Licenses - Required to Receive Payment, Etc., with citation guidance and answers to common questions.
§ 27-7-4.1. Licenses - Required to Receive Payment, Etc.
(a) No insurer or producer shall pay, directly or indirectly, any commission or other valuable consideration to any person for services as a producer or service representative within this state unless the person holds a currently valid license as a producer or service representative as to the kind or class of business involved as required by this chapter.
(b) Any insurer or producer violating this section shall be liable for a fine in an amount of up to three times the amount of the commission paid. The fine shall be levied and collected by the commissioner. Upon failure to pay the fine the commissioner may, in the commissioner’s discretion, revoke the license of the producer or the insurer’s certificate of authority.
(c) The provisions of this section shall not prevent any of the following:
(1) Payment of renewal or other deferred commissions to any person solely because the person has ceased to hold a license to act as a producer.
(2) Payment to the personal representative of a deceased producer.
(3) Payment to a person holding a temporary producer license.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 27-7-4.1
What does Code of Alabama § 27-7-4.1 cover?
Section 27-7-4.1 ("Licenses - Required to Receive Payment, Etc.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 27-7-4.1?
A common citation format is "Code of Alabama § 27-7-4.1" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 27-7-4.1 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.