Which of the following practices is prohibited for insurance producers?

Sharing commissions with non-licensed individuals is prohibited for insurance producers because it violates regulatory standards meant to ensure that only licensed professionals can receive compensation for insurance services. This regulation is in place to protect consumers and maintain the integrity of the insurance industry. By allowing only licensed individuals to earn commissions, the regulatory framework helps to ensure that qualified and knowledgeable individuals are the ones providing insurance products and services, thus safeguarding clients' interests.

This practice is closely monitored, and violations can result in significant penalties for both the producer and the entity involved, reinforcing the importance of adhering strictly to the licensing requirements established by regulatory authorities. It preserves the ethical standards within the industry by ensuring that all agents and producers are properly educated and licensed to perform their duties.

The other options, while they may have certain regulatory constraints or best practices associated with them, do not have the same level of prohibition as sharing commissions with those not licensed. For instance, offering promotional gifts to clients can sometimes be acceptable if they are of a modest value and comply with regulations. Free consultations and conducting market research are typically permissible and often used as tools for engaging with clients and assessing market needs.