California life insurance referral fee

I joined the family agency about 6 months ago. I am managing personal lines since sales have gone downhill and needs some new life.

We are using the Travelers affinity program. They discount 8% for employees with companies that have 25 employees or larger. We are bringing this to our larger clients, holding information meetings and getting x-dates. We just use it to get X-dates and I quote them with Travelers and Allied and give them the better price and better coverage. It is a great plan, both of these companies are beating AAA, Mercury, Progressive, Farmers and State Farm.

I am trying to keep this short, but I will give a full explanation. What I am going to do is give each company their own website, tailored to them. I am going to buy a website template where they can give the full quote or they can email or fax in their dec pages.

I want to put a referral button on the website to offer the employees of these firms a chance to have their friends sign up. If they have their friends sign up I will give the employee a $20 Amex gift card. I was also thinking of giving their friend one as well.

I just don't know the legality in CA for paying a referral fee, either to the person referring the prospect or the prospect. Considering I would only pay the referral fee if they sign up, I am thinking that there is something wrong with it. Given I will be so blatant about it, posting it right on the website, I don't want some other agent calling me on it and reporting me. I want to be legal since its the only way to last in any business, but I also like to be very close to the line, since that's the way you make money as well.

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