Which statement would allow an intermediary to receive compensation for insuring the intermediary's own life?

• A. The intermediary has not sold other insurance
• B. The prior year did not meet any sales requirement
• C. The intermediary is not licensed
• D. During the prior year the intermediary sold other insurance with the same company with total premiums exceeding the premiums on the intermediary's own life

Answer: (D)

In life insurance practice, there’s a rule to prevent self-dealing: an intermediary can’t receive commissions for insuring the intermediary’s own life unless there’s substantial other business with the same insurer. The statement describing that, in the prior year, the intermediary sold other insurance with the same company and the total premiums from those policies exceed the premiums on the intermediary’s own life, satisfies that condition, showing a meaningful ongoing relationship with the insurer. That’s why it would allow compensation for the own-life policy.

The other situations don’t meet this requirement: having no other policies with the company, or not meeting any sales threshold, or not being licensed, do not establish the needed level of existing business with the insurer to justify compensation for the self-bought policy.