Section 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:(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;(D) a group insurance policy offering accident and health insurance or a blanket insurance policy offering 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:(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:(ii) special trustworthiness; or(iii) regulatory surveillance made possible by licensing; or(b) other existing safeguards make regulation unnecessary.Amended by Chapter 252, 2021 General Session ,§ 30, eff. 5/5/2021.Renumbered and Amended by Chapter 298, 2003 General Session.