Associate Producer Onboarding & CDI Risk Guardrails

1. Mandatory California CDI License Protection Rules

• Active CDI License & Endorsement (CIC § 1668 / § 1704): Every sub-producer must hold an active, unencumbered California Property & Casualty Broker-Agent license and complete background & E&O verification before quoting.

• Zero Direct Cash/Check Handling (CIC § 1733 / § 1734 Fiduciary Mandate): Sub-producers are strictly prohibited from collecting cash, checks, Zelle, Venmo, or wire transfers from insureds. 100% of client funds must process through RNC's Stripe Elements checkout directly into Wells Fargo Fiduciary Premium Trust Account A.

• Broker Fee Compliance (CIC § 1623 & 10 CCR § 2189.3): Broker fees are locked at $0.00 on Admitted appointments. Surplus Lines broker fees are hard-capped at $750.00 and require a Documenso e-signed CA Standard Broker Fee Agreement (Appendix A/B) & Form D-1/D-2 prior to binding.

• Certificate & Binder Control: Producers may never alter PDFs outside the RNC COI Engine or bind coverage without written carrier confirmation. Producers indemnify RNC against any E&O deductible arising from unauthorized acts.

2. Producer Commission & Broker Fee Split Schedule

• Tier 1 — Standard Associate Producer (1099 Independent Contractor): 60% Producer / 40% Agency on net New Business Carrier Commissions and compliant Surplus Lines Broker Fees (for self-sourced leads); 50% / 50% on Agency-provided leads and annual Renewals.

• Tier 2 — Senior Commercial Producer ($100k+ Annualized Agency Revenue): 70% Producer / 30% Agency on New Business; 60% / 40% on Renewals.

• Fiduciary Vesting & Payout Timing: Per CIC § 1734, commissions and broker fees vest and disburse via ACH on the 1st and 15th of each month strictly after carrier net-premium remittance clears and all Documenso compliance files are verified in EspoCRM.