This bill amends the Insurance Sales Consumer Protection Act in West Virginia by prohibiting referrals made by unlicensed individuals and establishing necessary safeguards against unethical telemarketing practices. Specifically, it introduces new requirements for issuers and producers who make payments for referrals by unlicensed persons. These requirements include ensuring that unlicensed individuals do not engage in certain telemarketing practices, such as using autodialed or prerecorded calls without consent, contacting numbers on the National Do Not Call Registry, displaying misleading caller ID information, or misrepresenting their status as licensed agents.

Additionally, the bill clarifies that a person who is not licensed to sell insurance may refer customers to licensed individuals only if they receive no fee or a nominal fee of $100 or less, which is not contingent upon the customer's application for or purchase of insurance. The intent of the legislation is to enhance consumer protection by regulating referral practices and ensuring that telemarketing efforts comply with ethical standards.

Statutes affected:
Introduced Version: 33-11A-7