                                 CODE OF VIRGINIA

LICENSE REQUIRED OF CONSULTANTS; FINGERPRINTING (§ 38.2-1838)

A. No person, unless he holds an appropriate license shall:

   1. Represent to members of the public that he provides planning or consulting
   services beyond those within the normal scope of activities of a licensed
   insurance agent; or

   2. Except as provided in &#xA7; 38.2-1812.2, charge or receive, directly or
   indirectly, a fee or other compensation for insurance advice, other than
   commissions received in such person&#8217;s capacity as a licensed insurance
   agent or surplus lines broker resulting from selling, soliciting, or
   negotiating insurance or health care services as allowed by his license.

B. Each individual applying for an insurance consultant&#8217;s license shall
apply to the Commission in a form acceptable to the Commission, and shall
provide satisfactory evidence of having met the following requirements:

   1. To be licensed as a property and casualty insurance consultant the
   applicant must pass, within 183 calendar days prior to the date of application
   for such license, the property and casualty examination as required in &#xA7;
   38.2-1817, except that an applicant who, at the time of such application holds
   an active property and casualty insurance agent license, shall be exempt from
   the examination requirements;

   2. To be licensed as a life and health insurance consultant, the applicant
   must pass, within 183 calendar days prior to the date of application for such
   license, both the life and annuities and the health examinations as required
   in &#xA7; 38.2-1817, except that an applicant who, at the time of such
   application holds both an active life and annuities license and an active
   health agent license, shall be exempt from the examination requirements;

   3. Each individual applicant for an insurance consultant license shall, at the
   time of applying for a new license, be fingerprinted in a form and manner
   prescribed by the Commission and shall provide personal descriptive
   information to be forwarded along with the applicant&#8217;s fingerprints
   through the Central Criminal Records Exchange to the Federal Bureau of
   Investigation for the purpose of obtaining criminal history record information
   regarding such applicant. The results of the state and national records search
   shall be forwarded to the Commissioner or the Commissioner&#8217;s designee,
   who shall be an employee of the Commission. The cost of fingerprinting and the
   criminal history record check shall be paid by the applicant. If an
   applicant&#8217;s application for a license is denied, the Commission shall
   provide a copy of the information obtained from the Central Criminal Records
   Exchange to the applicant upon request. The information provided to the
   Commission shall not be disseminated except as provided in this subsection;
   and

   4. Except where prohibited by state or federal law, by submitting an
   application for license, the applicant shall be deemed to have appointed the
   clerk of the Commission as the agent for service of process on the applicant
   in any action or proceeding arising in the Commonwealth out of or in
   connection with the exercise of the license. Such appointment of the clerk of
   the Commission as agent for service of process shall be irrevocable during the
   period within which a cause of action against the applicant may arise out of
   transactions with respect to subjects of insurance in the Commonwealth.
   Service of process on the clerk of the Commission shall conform to the
   provisions of Chapter 8 (&#xA7; 38.2-800 et seq.).

C. Any individual who acts as an insurance consultant as an officer, director,
principal or employee of a business entity shall be required to hold an
appropriate individual license as an insurance consultant.

D. A business entity acting as an insurance consultant is required to obtain an
insurance consultant license. Application shall be made in a form and manner
acceptable to the Commission. Before approving the application, the Commission
shall find that:

   1. The business entity has paid the fee set forth in this section; and

   2. The business entity has designated an employee, officer, director, manager,
   member, or partner to serve as the licensed producer responsible for the
   business entity&#8217;s compliance with the insurance laws, rules and
   regulations of the Commonwealth.

E. The Commission may require any documents reasonably necessary to verify the
information contained in an application.

F. Each applicant for an insurance consultant&#8217;s license shall, at the time
of applying for a license, pay a nonrefundable application processing fee in an
amount and in a manner prescribed by the Commission.

HISTORY: 1985, c. 3, § 38.1-327.63; 1986, c. 562; 1987, c. 678; 1992, c. 574;
1997, c. 583; 2001, c. 706; 2008, c. 213; 2016, c. 552; 2018, c. 131; 2019, c.
675.