38.2-1821.1 - Exceptions to licensing.
§ 38.2-1821.1. Exceptions to licensing.
A. Nothing in this article shall be construed to require an insurer to obtainan insurance producer license. As used in this section, the term "insurer"does not include an insurer's officers, directors, employees, subsidiaries oraffiliates.
B. A license as an insurance producer shall not be required of the following:
1. An officer, director or employee of an insurer or of an insuranceproducer, provided that the officer, director or employee does not receiveany direct or indirect commission on policies written or sold to insure risksresiding, located or to be performed in this Commonwealth and:
a. The officer, director or employee's activities are executive,administrative, managerial, clerical or a combination of these, and are onlyindirectly related to the sale, solicitation or negotiation of insurance; or
b. The officer, director or employee's function relates to underwriting, losscontrol, inspection or the processing, adjusting, investigating or settlingof a claim on a contract of insurance; or
c. The officer, director or employee is acting in the capacity of a specialagent or agency supervisor assisting insurance producers where the person'sactivities are limited to providing technical advice and assistance tolicensed insurance producers and do not include the sale, solicitation ornegotiation of insurance;
2. A person who (i) secures and furnishes information for the purpose ofgroup life insurance, group property and casualty insurance, group annuities,group or blanket accident and health insurance; (ii) secures and furnishesinformation for the purpose of enrolling individuals under plans, issuingcertificates under plans or otherwise assisting in administering plans; or(iii) performs administrative services related to mass marketed property andcasualty insurance. As used in this section, "administrative services" doesnot include the selling, soliciting, or negotiating of insurance where nodirect or indirect commission is paid to the person for the service;
3. An employer or association or its officers, directors, employees, or thetrustees of an employee trust plan, to the extent that the employers,officers, employees, directors or trustees are engaged in the administrationor operation of a program of employee benefits for the employer's orassociation's own employees or the employees of its subsidiaries oraffiliates, which program involves the use of insurance issued by an insurer,as long as the employers, associations, officers, directors, employees ortrustees are not in any manner compensated, directly or indirectly, by thecompany issuing the contracts;
4. Employees of insurers or organizations employed by insurers who areengaging in the inspection, rating or classification of risks, or in thesupervision of the training of insurance producers and who are notindividually engaged in the sale, solicitation or negotiation of insurance;
5. A person whose activities in this Commonwealth are limited to advertisingwithout the intent to solicit insurance in this Commonwealth throughcommunications in printed publications or other forms of electronic massmedia whose distribution is not limited to residents of the Commonwealth,provided that the person does not sell, solicit or negotiate insurance thatwould insure risks residing, located or to be performed in this Commonwealth;
6. A person who is not a resident of this Commonwealth who sells, solicits ornegotiates a contract of insurance for commercial property and casualty risksto an insured with risks located in more than one state insured under thatcontract, provided that that person is otherwise licensed as an insuranceproducer to sell, solicit or negotiate that insurance in the state where theinsured maintains its principal place of business and the contract ofinsurance insures risks located in that state;
7. A salaried, full-time employee who counsels or advises his employerrelative to the insurance interests of the employer or of the subsidiaries orbusiness affiliates of the employer provided that the employee does not sell,solicit or negotiate insurance or receive direct or indirect commission; or
8. Any person who refers a customer who seeks to purchase any insuranceproduct to a licensed agent and receives compensation for the referral of acustomer, provided that:
a. The referral does not include a discussion of specific insurance policyterms and conditions;
b. The compensation is in the form of a one-time nominal fee of a fixeddollar amount for each referral; and
c. The compensation does not depend on whether the referral results in thepurchase of insurance by the customer.
(2001, c. 706.)