Under which condition can a producer legally share commission with another producer?

The option stating that a producer can legally share commission with another producer when the other producer is licensed in the same line of business is based on the regulatory requirements governing commission sharing among insurance professionals. In most jurisdictions, including South Carolina, commission sharing is permissible only between licensed professionals who operate within the same line of business—such as life insurance, health insurance, or property and casualty insurance.

This requirement exists to ensure that all parties involved in the transaction are subject to the same regulatory and ethical standards applicable to that specific line of insurance. It helps to maintain professionalism in the industry and protects consumers by ensuring that both producers have the requisite knowledge and adherence to the laws governing that particular type of insurance.

While other options suggest sharing could occur based on geography or broader licensing categories, they do not align with the legal stipulations that seek to foster accountability and expertise among producers in the same insurance field.