Lead cards are messages sent to the public that are used to put together a list with the names or other personal information of individuals who have expressed an interest in receiving information about insurance. A licensed insurance producer may buy lead cards or mailing lists under certain conditions.
- The amount of compensation cannot be based on the number of prospects that actually apply for or obtain insurance or the number of quotes issued.
- The person selling the lead cards or mailing list must be in the business of selling lead cards or mailing lists.
- The lead cards must not seek information on behalf of a specific insurance company.
- The lead cards must not seek information on behalf of a specific insurance producer.
See WAC 284-17-810 (leg.wa.gov).
Examples
1. An insurance producer pays a lead generator $100 a year.
An insurance producer may compensate a lead generator for the purchase of lead cards or a mailing list of prospective insureds, provided the amount of the compensation is not based on the number of prospective insureds that apply for or obtain insurance or the number of quotes issued to prospective insureds.
See WAC 284-17-810(2) (leg.wa.gov).
2. An insurance producer compensates a lead generator for all of the leads provided with a bonus payment for those leads that resulted in a sale.
This is not permitted. The amount of compensation to a lead generator cannot be based on the number of individuals that obtain insurance.