As used in this chapter, unless the context requires otherwise:
1."Active participation" means:
a.Attendance at a formal meeting of a professional insurance association at which
a formal business program is presented;
b.Service on the board of directors or a formal committee of a professional
insurance association and involvement in the activities of the board or committee;
or
c.Participation in industry, regulatory, or legislative meetings held by or on behalf of
a professional insurance association.
2."Business entity" means a corporation, association, partnership, limited liability
company, limited liability partnership, or other legal entity.
3."Home state" means the District of Columbia and any state or territory of the United
States in which an insurance producer maintains the
Free access — add to your briefcase to read the full text and ask questions with AI
As used in this chapter, unless the context requires otherwise:
1. "Active participation" means:
a. Attendance at a formal meeting of a professional insurance association at which
a formal business program is presented;
b. Service on the board of directors or a formal committee of a professional
insurance association and involvement in the activities of the board or committee;
or
c. Participation in industry, regulatory, or legislative meetings held by or on behalf of
a professional insurance association.
2. "Business entity" means a corporation, association, partnership, limited liability
company, limited liability partnership, or other legal entity.
3. "Home state" means the District of Columbia and any state or territory of the United
States in which an insurance producer maintains the producer's principal place of
residence or principal place of business and is licensed to act as an insurance
producer.
4. "Insurance" means any of the lines of authority in section 26.1-26-11.
5. "Insurance consultant" means a person that, for a fee, holds oneself or itself out to the
public as engaged in the business of offering any advice, counsel, opinion, or service
with respect to the benefits, advantages, or disadvantages promised under any
insurance policy that could be issued in this state.
6. "Insurance producer" means a person required to be licensed under the laws of this
state to sell, solicit, or negotiate insurance.
7. "Insurer" means all types of insurance companies as well as prepaid legal services
organizations and health maintenance organizations.
8. "License" means a document issued by the commissioner authorizing a person to act
as an insurance producer for the lines of authority specified in the document. The
license itself does not create any authority, actual, apparent, or inherent, in the holder
to represent or commit an insurance carrier.
9. "Negotiate" means the act of conferring directly with or offering advice directly to a
purchaser or prospective purchaser of a particular contract of insurance concerning
any of the substantive benefits, terms, or conditions of the contract, provided that the
person engaged in that act either sells insurance or obtains insurance from insurers for
purchasers.
10. "Person" means an individual or a business entity.
11. "Professional insurance association" means a state or national membership
organization that offers courses, lectures, seminars, or other instructional programs
certified by the commissioner as approved continuing education activities pursuant to
section 26.1-26-31.3; is organized as an association or corporation for the express
purpose of promoting the interests of insurance licensees in this state or nationally;
and is based on paid membership renewable annually or biennially for a membership
fee.
12. "Sell" means to exchange a contract of insurance by any means, for money or its
equivalent, on behalf of an insurance company.
13. "Solicit" means attempting to sell insurance or asking or urging a person to apply for a
particular kind of insurance from a particular company.
14. "Surplus lines insurance producer" means a person that sells, solicits, negotiates, or
procures an insurance policy from an insurer not licensed to transact business in this
state which cannot be procured from an insurer licensed to do business in this state.
15. "Terminate" means the cancellation of the relationship between an insurance producer
and the insurer or the termination of a producer's authority to transact insurance.
16. "Uniform application" means the current version of the national association of
insurance commissioners uniform application for resident and nonresident insurance
producer licensing.
17. "Uniform business entity application" means the current version of the national
association of insurance commissioners uniform business entity application for
resident and nonresident business entities.