31A-23a-201. Exceptions to producer licensing.
(1) The commissioner may not require a license as an insurance producer of:
(a) an officer, director, or employee of an insurer or of an insurance producer if:
(i) the officer, director, or employee does not receive any commission on a policy written
or sold to insure risks residing, located, or to be performed in this state; and
(ii) (A) the officer's, director's, or employee's activities are:
(I) executive, administrative, managerial, clerical, or a combination of these activities;
and
(II) only indirectly related to the sale, solicitation, or negotiation of insurance;
(B) the officer's, director's, or employee's function relates to:
(I) underwriting;
(II) loss control;
(III) inspection; or
(IV) the processing, adjusting, investigating or settling of a claim on a contract of
insurance; or
(C) (I) the officer, director, or employee is acting in the capacity of a special agent or
agency supervisor assisting an insurance producer;
(II) the officer's, director's, or employee's activities are limited to providing technical
advice and assistance to a licensed insurance producer; and
(III) the officer's, director's, or employee's activities do not include the sale, solicitation,
or negotiation of insurance;
(b) a person who:
(i) is paid no commission for the services described in Subsection (1)(b)(ii); and
(ii) secures and furnishes information for the purpose of:
(A) group life insurance;
(B) group property and casualty insurance;
(C) group annuities;
(D) group or blanket accident and health insurance;
(E) enrolling individuals under plans;
(F) issuing certificates under plans; or
(G) otherwise assisting in administering plans;
(c) a person who:
(i) is paid no commission for the services described in Subsection (1)(c)(ii); and
(ii) performs administrative services related to mass marketed property and casualty
insurance;
(d) (i) any of the following if the conditions of Subsection (1)(d)(ii) are met:
(A) an employer or association; or
(B) an officer, director, employee, or trustee of an employee trust plan;
(ii) a person listed in Subsection (1)(d)(i):
(A) to the extent that the employer, officer, employee, director, or trustee is engaged in
the administration or operation of a program of employee benefits for:
(I) the employer's or association's own employees; or
(II) the employees of a subsidiary or affiliate of an employer or association;
(B) the program involves the use of insurance issued by an insurer; and
(C) the employer, association, officer, director, employee, or trustee is not in any manner
compensated, directly or indirectly, by the company issuing the contract;
(e) an employee of an insurer or organization employed by an insurer who:
(i) is engaging in:
(A) the inspection, rating, or classification of risks; or
(B) the supervision of the training of insurance producers; and
(ii) is not individually engaged in the sale, solicitation, or negotiation of insurance;
(f) a person whose activities in this state are limited to advertising:
(i) without the intent to solicit insurance in this state;
(ii) through communications in mass media including:
(A) a printed publication; or
(B) a form of electronic mass media;
(iii) that is distributed to residents outside of the state; and
(iv) if the person does not sell, solicit, or negotiate insurance that would insure risks
residing, located, or to be performed in this state;
(g) a person who:
(i) is not a resident of this state;
(ii) sells, solicits, or negotiates a contract of insurance:
(A) for commercial property and casualty risks to an insured with risks located in more
than one state insured under that contract; and
(B) insures risks located in a state in which the person is licensed as provided in
Subsection (1)(g)(iii); and
(iii) is licensed as an insurance producer to sell, solicit, or negotiate that insurance in the
state where the insured maintains its principal place of business; or
(h) if the employee does not sell, solicit, or receive a commission for a contract of
insurance, a salaried full-time employee who counsels or advises the employee's employer
relating to the insurance interests of:
(i) the employer; or
(ii) a subsidiary or business affiliate of the employer.
(2) The commissioner may by rule exempt a class of persons from the license
requirement of Subsection 31A-23a-103(1) if:
(a) the functions performed by the class of persons does not require:
(i) special competence;
(ii) special trustworthiness; or
(iii) regulatory surveillance made possible by licensing; or
(b) other existing safeguards make regulation unnecessary.
Renumbered and Amended by Chapter 298, 2003 General Session
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Last revised: Thursday, May 28, 2009