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