As an agent, networking with other business owners is essential to developing the kind of leads that help build your insurance agency. That is why agents are encouraged to become involved in their communities by joining various business associations like the chamber of commerce, sponsoring any number of community activities such as a local softball league, or involving themselves in charitable organizations like the United Way. By taking an active role in these and other community activities, an agent can build up his name brand and develop the types of relationships that can result in the kind of quality leads that will ensure the agent's success.

At the Florida Association of Insurance Agents (FAIA), agents ask us how they can legally reward individuals who help them develop quality leads. You know, of course, that as an agent you can never share a commission with anyone who doesn't have a 2-20 license. Life and health commissions also can only be paid or shared with other agents with life and health licenses. But what if you have a relationship with another business, say the accounting firm down the street or mortgage broker that sends you 10 great leads a month and you write about half of them? How can you say thank you?

There are two ways under the law that an agent can show his appreciation to another business owner for providing leads. The first is to give the owner what is considered an advertising gift, which must be limited to something valued at $25 or less. As spelled out in Chapter 626.9541(m), Florida Statutes, “Advertising gifts permitted. No provision of paragraph (f), paragraph (g), or paragraph (h), shall be deemed to prohibit a licensed insurer or its agents from giving to insureds, prospective insureds, and others, for the purpose of advertising, any article of merchandise having a value of not more than $25.”