Under Georgia law, a producer licensed as a counselor charges a personal-lines customer a fee and will also receive compensation from the insurer for the placement. When must that compensation be disclosed?

Why this is the answer

O.C.G.A. § 33-23-46 lets a producer licensed as a counselor who charges the customer a fee also accept compensation from the insurer or another third party for the placement only if, before the customer's purchase, the producer obtains the customer's documented acknowledgment (written consent, or consent documented by the producer for a telephone or electronic sale) and discloses the amount of that compensation, or the method of calculating it if the amount is not yet known. A producer who is not licensed as a counselor may not accept any compensation from the customer for placing insurance at all.