UPON THE REQUEST OF A MEMBER OF THE SOUTH CAROLINA BAR, THE ETHICS ADVISORY COMMITTEE HAS RENDERED THIS OPINION ON THE ETHICAL PROPRIETY OF THE INQUIRER’S CONTEMPLATED CONDUCT. THIS COMMITTEE HAS NO DISCIPLINARY AUTHORITY. LAWYER DISCIPLINE IS ADMINISTERED SOLELY BY THE SOUTH CAROLINA SUPREME COURT THROUGH ITS COMMISSION ON LAWYER CONDUCT.
Ethics Advisory Opinion 98-29
An attorney, also licensed to engage in life insurance business, seeks to refer a client to a life insurance agent. The attorney has an agreement with the other life insurance agent to share commissions which may be earned as a result of the referral.
QUESTIONS:
1. Is it ethical for an attorney to sell life insurance in South Carolina?
2. Is it ethical for a practicing attorney to refer clients to a life insurance agent and share in the commissions generated from the sale of a policy to a client?
OPINION:
1. The Committee finds no ethical rules which would prohibit a practicing attorney, who is also licensed, from selling life insurance in South Carolina.
2. The Rules of Professional Conduct would not prohibit a practicing attorney from referring clients and receiving a commission from the referral, provided the requirements of RPC 1.7 (b), 1.8(a), and 1.8(f) are met.