20-890. Licensing of insurance producers

335 words·~2 min read·/az/title-20/20-890

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. An insurance producer of a society or its subsidiary or affiliated organizations shall be licensed pursuant to chapter 2, article 3 of this title. The director may waive the examination for licensure if the applicant was licensed after January 1, 1955 and has been an active soliciting representative of a society in this state for not less than six months immediately preceding the application.

B. A regular salaried officer, employee or member of a licensed society who devotes substantially all of that individual's services to activities other than the solicitation of fraternal insurance contracts and who receives for the solicitation of those contracts no commission or other compensation directly dependent on the amount of business solicited is not subject to examination and licensure pursuant to this section.

C. An insurance producer, representative or member of the society who devotes or intends to devote less than fifty per cent of that individual's time to the solicitation and procurement of insurance contracts is exempt from subsection A. This exemption does not apply to an insurance producer of a subsidiary corporation or affiliated organization. From time to time each society shall submit to the director the names and addresses of all persons who are actively engaged in its behalf as insurance producers.

D. A person who in the preceding calendar year has solicited and procured life insurance contracts on behalf of a fraternal benefit society in an amount of insurance of more than one hundred thousand dollars, or in the case of any other kind or kinds of insurance that the society may write, on the persons of more than one hundred individuals, is presumed to be devoting or intending to devote more than fifty per cent of that individual's time to the solicitation or procurement of insurance contracts for societies.

E. In this state a person shall not solicit, forward applications or assist in placing insurance of residents of this state in any fraternal benefit society that is not authorized to transact business in this state.