§ 26.1-26-09 — Exceptions to licensing requirements

1. Nothing in this chapter may be construed to require an insurer to obtain an insurance
producer license. In this section, the term "insurer" does not include an insurer's
officers, directors, employees, subsidiaries, or affiliates.
2. A license as an insurance producer is not required 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:
(1) The officer, director, or employee's activities 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 officer, director, or employee's function relates to underwriting, loss
control, inspection, or the processing, adjusting, investigating, or settling of a
claim on a contract of insurance; or
(3) The officer, director, or employee is acting in the capacity of a special agent
or agency supervisor assisting insurance producers when the person's
activities are limited to providing technical advice and assistance to licensed
insurance producers and do not include the sale, solicitation, or negotiation
of insurance.
b. A person who secures and furnishes information for the purpose of group life
insurance, group property and casualty insurance, group annuities, group or
blanket accident and health insurance, or for the purpose of enrolling individuals
under plans or otherwise assisting in administering plans, or performs
administrative services related to mass-marketed property and casualty
insurance, when no commission is paid to the person for the service.
c. An employer or association or its officers, directors, employees, or the trustees of
an employee trust plan, to the extent that the employers, officers, employees,
directors, or trustees are 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 the employers, associations, officers,
directors, employees, or trustees are not in any manner compensated, directly or
indirectly, by the company issuing the contracts.
d. An employee of an insurer or an organization employed by an insurer or an
organization who inspects, rates, or classifies risks or supervises the training of
insurance producers and who is not individually engaged in the sales, 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 insurance for commercial property and casualty risks to an insured
with risks located in more 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 that person'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. An employee of an insurer or of an insurance producer who responds to requests
from existing policyholders on existing policies provided that employee is not
directly compensated based on the volume of premiums that may result from
these services and provided that employee does not sell, solicit, or negotiate
insurance.