2006 Utah Code - 31A-23a-201 — Exceptions to producer licensing.

     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