26.1-26-09. Exceptions to licensing requirements

26.1-26-09. Exceptions to licensing requirements

1. Nothing in this chapter may be construed to require an insurer to obtain an insurance

producer license. In this section, the term "insurer" does not include an insurer's

officers, directors, employees, subsidiaries, or affiliates.

2. A license as an insurance producer is not 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

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 executive, administrative,

managerial, clerical, or a combination of these, and are only indirectly

related to the sale, solicitation, or negotiation of insurance;

(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 when the person'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. A person who 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 or otherwise assisting in administering plans, or performs

administrative services related to mass-marketed property and casualty

insurance, when no commission is paid to the person 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 company issuing the contracts.

d. An employee of an insurer or an organization employed by an insurer or an

organization who inspects, rates, or classifies risks or supervises the training of

insurance producers and who is not individually engaged in the sales, solicitation,

or negotiation of insurance.

e. A person 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 media whose distribution is not limited to residents

of the state, provided that the person does not sell, solicit, or negotiate insurance

that would insure risks residing, located, or to be performed in this state.

f. A person 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 state insured under that contract, provided

that that person 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.

g. A salaried full-time employee who counsels or advises that person's employer

relative to the insurance interests of the employer or of the subsidiaries or

business affiliates of the employer provided that the employee does not sell or

solicit insurance or receive a commission.

sured maintains its principal

place of business and the contract of insurance insures risks located in that state.

g. A salaried full-time employee who counsels or advises that person's employer

relative to the insurance interests of the employer or of the subsidiaries or

business affiliates of the employer provided that the employee does not sell or

solicit insurance or receive a commission.

h. An employee of an insurer or of an insurance producer who responds to requests

from existing policyholders on existing policies provided that employee is not

directly compensated based on the volume of premiums that may result from

these services and provided that employee does not sell, solicit, or negotiate

insurance.