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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
(f)
(g)
communications in printed publications or other forms of electronic mass
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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