§ 27-1-15.6-23 — Insurance consultant license

Indiana § 27-1-15.6-23

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 15.6: Insurance Producers

Text

(a) An individual or corporation shall not
engage in the business of an insurance consultant until a consultant
license has been issued to the individual or corporation by the
commissioner. However, a consultant license is not required for the
following:
(1) An attorney licensed to practice law in Indiana acting in the
attorney's professional capacity.
(2) A duly licensed insurance producer or surplus lines producer.
(3) A trust officer of a bank acting in the normal course of the
trust officer's employment.
(4) An actuary or a certified public accountant who provides
information, recommendations, advice, or services in the actuary's
or certified public accountant's professional capacity.
(b) An application for a license to act as an insurance consultant
shall be made to the commissioner on forms prescribed by the
commissioner. An applicant may limit the scope of the applicant's
consulting services by stating the limitation in the application. The
areas of allowable consulting services are:
(1) Class 1, consulting regarding the kinds of insurance specified
in IC 27-1-5-1, Class 1; and
(2) Class 2 and Class 3, consulting regarding the kinds of
insurance specified in IC 27-1-5-1, Class 2 and Class 3.
Within a reasonable time after receipt of a properly completed
application form, the commissioner shall hold a written examination
for the applicant that is limited to the type of consulting services
designated by the applicant, and may conduct investigations and
propound interrogatories concerning the applicant's qualifications,
residence, business affiliations, and any other matter that the
commissioner considers necessary or advisable in order to determine
compliance with this chapter or for the protection of the public.
(c) For purposes of this subsection, "consultant's fee" does not
include a late fee charged under section 24 of this chapter or fees
otherwise allowed by law. A consultant shall provide consultant
services as outlined in a written agreement. The agreement must be
signed by the person receiving services, and a copy of the agreement
must be provided to the person receiving services before any services
are performed. The agreement must outline the nature of the work to be
performed by the consultant and the method of compensation of the
consultant. The signed agreement must be retained by the consultant
for not less than two (2) years after completion of the services. A copy
of the agreement shall be made available to the commissioner. In the
absence of an agreement on the consultant's fee, the consultant shall
not be entitled to recover a fee in any action at law or in equity.
(d) An individual or corporation shall not concurrently hold a
consultant license and an insurance producer's license, surplus lines
producer's license, or limited lines producer's license at any time.
(e) A licensed consultant shall not:
(1) employ;
(2) be employed by;
(3) be in partnership with; or
(4) receive any remuneration whatsoever;
from a licensed insurance producer, surplus lines producer, or limited
lines producer or insurer, except that a consultant may be compensated
by an insurer for providing consulting services to the insurer.
(f) A consultant license shall be valid for not longer than
twenty-four (24) months and may be renewed and extended in the same
manner as an insurance producer's license. The commissioner shall
designate on the license the consulting services that the licensee is
entitled to perform.
(g) All requirements and standards relating to the denial, revocation,
or suspension of an insurance producer's license, including penalties,
apply to the denial, revocation, and suspension of a consultant license
as nearly as practicable.
(h) A consultant is obligated under the consultant's license to:
(1) serve with objectivity and complete loyalty solely the
insurance interests of the consultant's client; and
(2) render the client such information, counsel, and service as
within the knowledge, understanding, and opinion, in good faith
of the licensee, best serves the client's insurance needs and
interests.
(i) The form of a written agreement required by subsection (c) must
be filed with the commissioner not less than thirty (30) days before the
form is used. If the commissioner does not expressly approve or
disapprove the form within thirty (30) days after filing, the form is
considered approved. At any time after notice and for cause shown, the
commissioner may withdraw approval of a form effective thirty (30)
days after the commissioner issues notice that the approval is
withdrawn.

Legislative History

As added by P.L.132-2001, SEC.3. Amended by P.L.193-2006, SEC.4.