§ 522B.3 — Exceptions to licensing

Iowa § 522B.3

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 522B: LICENSING OF INSURANCE PRODUCERS

Text

1. Nothing in this chapter shall be construed to require an insurer to obtain an insurance
producerlicense. Forthepurposesofthissection, “insurer”doesnotmeananofficer, director,
employee, subsidiary, or affiliate of the insurer.
2. A license as an insurance producer shall not be required of any 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 one of the following
applies:
(1) The activities of the officer, director, or employee 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 function of the officer, director, or employee relates to underwriting, loss control,
inspection, or the processing, adjusting, investigating, or settling of a claim on a contract of
insurance.
(3) The officer, director, or employee is acting in the capacity of a special agent or agency
supervisorassistinginsuranceproducerswheretheperson’sactivitiesarelimitedtoproviding
technical advice and assistance to licensed insurance producers and do not include the sale,
solicitation, or negotiation of insurance.
b. A person who performs any of the following services and who is not paid a commission
for the performance of such service:
(1) Secures and furnishes information for the purpose of group life insurance, group
3 LICENSING OF INSURANCE PRODUCERS, §522B.4
property and casualty insurance, group annuities, or group or blanket accident and health
insurance.
(2) Secures and furnishes information for the purpose of enrolling individuals under
plans, issuing certificates under plans, or otherwise assisting in administering plans.
(3) Performs administrative services related to mass marketed property and casualty
insurance.
c. An employer or association, or an officer, director, or employee of such employer or
association, or the trustees of an employee trust plan, to the extent that such employer,
association, officer, director, employee, or trustee is 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 such employer, association, officer, director,
employee, or trustee is not in any manner compensated, directly or indirectly, by the insurer
issuing the contracts.
d. An employee of an insurer, or an organization employed by an insurer, who engages
in the inspection, rating, or classification of risks or in the supervision of the training
of insurance producers and who is not individually engaged in the sale, 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
insuranceforcommercialpropertyandcasualtyriskstoaninsuredwithriskslocatedinmore
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 the employee’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. A licensed attorney providing surety bonds incident to the attorney’s practice.
i. Apersonsellingtransportationticketsofacommoncarrierofpersonsorpropertywhen
that person also sells, in connection with and related to the transportation ticket, a trip and
accidentinsurancepolicyoraninsurancepolicyonpersonaleffectsbeingcarriedasbaggage.