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304.9-090 Exceptions to licensure requirements.
(1)
(2)
Nothing in this subtitle shall be construed to require an insurer to obtain a
license as an insurance producer. As used in this section, the term "insurer"
does not include an insurer's officers, directors, employees, subsidiaries, or
affiliates.
A license as an insurance producer shall not be required of the following:
(a) An officer, director, or employee of an insurer or of an insurance
producer, provided that the officer, director, or employee does not receive
any commission or other valuable consideration on policies written or sold
to insure risks residing, located, or to be performed in this state, and:
1.
The officer, director, or employee's activities are devoted to
functions that are executive, administrative, managerial, clerical, or a
combination of these, and are only indirectly related to the sale,
solicitation, or negotiation of insurance; or
2.
The officer, director, 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
3.
The officer, director, or employee is acting in the capacity of a
special agent or agency supervisor assisting insurance producers
where the officer's, director's, or employee's activities are limited to
providing technical advice and assistance to licensed insurance
producers and do not include the sale, solicitation, or negotiation of
insurance;
(b) The individual secures and furnishes information for the purpose of group
life insurance, group property and casualty insurance, group annuities,
group or blanket accident and health insurance, or for the purpose of
enrolling individuals under plans, issuing certificates under plans, or
otherwise assisting in administering plans; or performs administrative
services related to a mass marketed property and casualty insurance,
where no commission is paid to the individual for the service;
(c) An employer or association or its officers, directors, employees, or the
trustees of an employee trust plan, to the extent that the employers,
officers, employees, directors, or trustees are 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 its
subsidiaries or affiliates, which program involves the use of insurance
issued by an insurer, as long as the employers, associations, officers,
directors, employees, or trustees are not in any manner compensated,
directly or indirectly, by the insurer issuing the contracts;
(d) Employees of insurers or organizations employed by insurers who are
engaging in the inspection, rating, or classification of risks, or in the
supervision of the training of insurance producers who are not individually
engaged in the sale, solicitation, or negotiation of insurance;
(e) An individual or business entity whose activities in this state are limited to
advertising without the intent to solicit insurance in this state through
communications in printed publications or other forms of electronic mass
(f)
(g)
media whose distribution is not limited to residents of the state, provided
that the individual or business entity does not sell, solicit, or negotiate
insurance that would insure risks residing, located, or to be performed in
this state;
An individual or business entity who is not a resident of this state who
sells, solicits, or negotiates a contract of insurance for commercial
property and casualty risks to an insured with risks located in more than
one (1) state insured under that contract, provided that the individual or
business entity is otherwise licensed as an insurance producer to sell,
solicit, or negotiate that insurance in the state where the insured
maintains its principal place of business and the contract of insurance
insures risks located in that state; or
A salaried full-time employee who counsels or advises his or her
employer relative to the insurance interest of the employer or of the
subsidiaries or business affiliates of the employer, provided that the
employee does not sell, solicit, or negotiate insurance or receive a
commission.
Effective:July 15, 2002
History: Amended 2002 Ky. Acts ch. 273, sec. 13, effective July 15, 2002. -Amended 2000 Ky. Acts ch. 393, sec. 6, effective July 14, 2000. -- Amended
1986 Ky. Acts ch. 307, sec. 4, effective July 15, 1986. -- Created 1970 Ky. Acts
ch. 301, subtit. 9, sec. 9, effective June 18, 1970.
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