40-762. Agents, licensing, certification and examination; exemption therefrom for certain agents, representatives and members; society to maintain record of exempted representatives; information there
40-762
40-762. Agents, licensing, certification and examination; exemptiontherefrom for certain agents, representatives and members; society tomaintain record of exempted representatives; information thereof and ofchange of exempt status to be furnished to commissioner; continuingeducation requirements.(a) Except as otherwiseprovided in this section, agents ofsocieties shall be licensed and certified in accordance with the provisionsof the laws regulating the licensing and revocation, suspension or terminationof licenses of resident and nonresident agents and shall be subject to thesame license, certification and examination fees as apply to agents ofinsurance companies similarly situated, except that no examination shall berequired of a person who is an agentof a society immediately prior to the effective date of this act, but thisexception shall apply only for the particular kind of insurance for whichsuch person was acting as agent.
(b) No examination or license shall be required of any regular salariedofficer, employee or member of a licensed society who devotes substantiallyall of their services to activities other than the solicitation offraternal insurance contracts from the public and who receives for thesolicitation of such contracts no commission or other compensation directlydependent upon the amount of business obtained.
(c) Any agent, representative or member of a society who devotes, orintends to devote, less than 50% of their time to the solicitation andprocurement of insurance contracts for such society shall be exempt fromthe requirements of subsection (a). Any person who in the precedingcalendar year has solicited and procured life insurance contracts on behalfof any society in a total amount of insurance in excess of $50,000, or, inthe case of any other kind or kinds of insurance which the society mightwrite, on the persons of more than 25 individuals and who has received orwill receive a commission or other compensation therefor, shall be presumedto be devoting, or intending to devote, 50% of their time to thesolicitation or procurement of insurance contracts for such society.
(d) Each society shall maintain a record of its representatives exemptedfrom licensing pursuant to subsection (c) and furnish the names andresidence addresses of such persons to the commissioner on or before April30 of each year. Each society shall furnish such information to thecommissioner within 30 days of the employment or termination of employmentof any such exempted person subsequent to April 30 of each year.
(e) Each society shall notify the commissioner within 30 days after anyperson exempted pursuant to subsection (c) ceases to qualify for suchexemption. The commissioner shall forthwith send a notice to such personrequiring that person to qualify by examination not sooner than 30 days norlater than 90 days from receipt of the notice. Thereafter, such personshall be subject to continuing education requirements for full-timeinsurance agents writing life, health and accident insurance.
History: L. 1988, ch. 154, § 25; Jan. 1, 1989.