NC S272

Defines "exchange of business" as the forwarding of insurance business between two licensed producers who are both appointed with an insurer that can accommodate the risk under favorable conditions to the insured

Authorizes insurance producers to exchange business and split commissions if both producers are licensed in all relevant lines, are disclosed to the insurer and consumer, and have a good-faith belief the exchange complies with statutory requirements

Adds commission splitting for business exchanges to the list of permitted circumstances for assigning or directing insurance commissions, fees, or other compensation

Preserves existing practices for specialty lines, nonstandard, and professional liability business placed through surplus lines producers or on excess/individually rated risk basis, as well as risk sharing plans

Applies to contracts entered into or renewed on or after the effective date