                                 CODE OF VIRGINIA

EXCEPTIONS TO LICENSING (§ 38.2-1821.1)

A. Nothing in this article shall be construed to require an insurer to obtain an
insurance producer license. As used in this section, the term
&#8220;insurer&#8221; does not include an insurer&#8217;s officers, directors,
employees, subsidiaries or affiliates.

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 insurance producer,
   provided that the officer, director or employee does not receive any direct or
   indirect commission on policies written or sold to insure risks residing,
   located or to be performed in this Commonwealth and:
   				a. The officer, director or employee&#8217;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; or
   				b. The officer, director or employee&#8217;s function relates to
   underwriting, loss control, inspection or the processing, adjusting,
   investigating or settling of a claim on a contract of insurance; or
   				c. The officer, director or employee is acting in the capacity of a
   special agent or agency supervisor assisting insurance producers where the
   person&#8217;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;

   2. A person who (i) 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; (ii) secures and furnishes
   information for the purpose of enrolling individuals under plans, issuing
   certificates under plans or otherwise assisting in administering plans; or
   (iii) performs administrative services related to mass marketed property and
   casualty insurance. As used in this section, &#8220;administrative
   services&#8221; does not include the selling, soliciting, or negotiating of
   insurance where no direct or indirect commission is paid to the person for the
   service;

   3. 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&#8217;s or
   association&#8217;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;

   4. Employees of insurers or organizations employed by insurers who are
   engaging in the inspection, rating or classification of risks, or in the
   supervision of the training of insurance producers and who are not
   individually engaged in the sale, solicitation or negotiation of insurance;

   5. A person whose activities in this Commonwealth are limited to advertising
   without the intent to solicit insurance in this Commonwealth through
   communications in printed publications or other forms of electronic mass media
   whose distribution is not limited to residents of the Commonwealth, provided
   that the person does not sell, solicit or negotiate insurance that would
   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 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;

   7. A salaried, full-time employee who counsels or advises his 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,
   solicit or negotiate insurance or receive direct or indirect commission; or

   8. Any person who refers a customer who seeks to purchase any insurance
   product to a licensed agent and receives compensation for the referral of a
   customer, provided that:
   				a. The referral does not include a discussion of specific insurance policy
   terms and conditions;
   				b. The compensation is in the form of a one-time nominal fee of a fixed
   dollar amount for each referral; and
   				c. The compensation does not depend on whether the referral results in the
   purchase of insurance by the customer.

HISTORY: 2001, c. 706.