(1)The commissioner may not require a license as an insurance producer of:
(1)(a) an officer, director, or employee of an insurer or of an insurance producer if:
(1)(a)(i) the officer, director, or employee does not receive any commission on a policy written or sold to insure risks residing, located, or to be performed in this state; and
(1)(a)(ii) (1)(a)(ii)(A) the officer's, director's, or employee's activities are:
(1)(a)(ii)(A)(I) executive, administrative, managerial, clerical, or a combination of these activities; and
(1)(a)(ii)(A)(II) only indirectly related to the sale, solicitation, or negotiation of insurance;
(1)(a)(ii)(B) the officer's, director's, or employee's function relates to:
(1)(a)(ii)(B)(I) underwriting;
(1)(a)(ii)(B)(II) loss control;
(1)(a)(ii)(B)(III) inspection;
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(1) The commissioner may not require a license as an insurance producer of:
(1)(a) an officer, director, or employee of an insurer or of an insurance producer if:
(1)(a)(i) the officer, director, or employee does not receive any commission on a policy written or sold to insure risks residing, located, or to be performed in this state; and
(1)(a)(ii) (1)(a)(ii)(A) the officer's, director's, or employee's activities are:
(1)(a)(ii)(A)(I) executive, administrative, managerial, clerical, or a combination of these activities; and
(1)(a)(ii)(A)(II) only indirectly related to the sale, solicitation, or negotiation of insurance;
(1)(a)(ii)(B) the officer's, director's, or employee's function relates to:
(1)(a)(ii)(B)(I) underwriting;
(1)(a)(ii)(B)(II) loss control;
(1)(a)(ii)(B)(III) inspection; or
(1)(a)(ii)(B)(IV) the processing, adjusting, investigating or settling of a claim on a contract of insurance; or
(1)(a)(ii)(C) (1)(a)(ii)(C)(I) the officer, director, or employee is acting in the capacity of a special agent or agency supervisor assisting an insurance producer;
(1)(a)(ii)(C)(II) the officer's, director's, or employee's activities are limited to providing technical advice and assistance to a licensed insurance producer; and
(1)(a)(ii)(C)(III) the officer's, director's, or employee's activities do not include the sale, solicitation, or negotiation of insurance;
(1)(b) a person who:
(1)(b)(i) is paid no commission for the services described in Subsection (1)(b)(ii); and
(1)(b)(ii) secures and furnishes information for the purpose of:
(1)(b)(ii)(A) group life insurance;
(1)(b)(ii)(B) group property and casualty insurance;
(1)(b)(ii)(C) group annuities;
(1)(b)(ii)(D) a group insurance policy offering accident and health insurance or a blanket insurance policy offering accident and health insurance;
(1)(b)(ii)(E) enrolling individuals under plans;
(1)(b)(ii)(F) issuing certificates under plans; or
(1)(b)(ii)(G) otherwise assisting in administering plans;
(1)(c) a person who:
(1)(c)(i) is paid no commission for the services described in Subsection (1)(c)(ii); and
(1)(c)(ii) performs administrative services related to mass marketed property and casualty insurance;
(1)(d) (1)(d)(i) any of the following if the conditions of Subsection (1)(d)(ii) are met:
(1)(d)(i)(A) an employer or association; or
(1)(d)(i)(B) an officer, director, employee, or trustee of an employee trust plan;
(1)(d)(ii) a person listed in Subsection (1)(d)(i):
(1)(d)(ii)(A) to the extent that the employer, officer, employee, director, or trustee is engaged in the administration or operation of a program of employee benefits for:
(1)(d)(ii)(A)(I) the employer's or association's own employees; or
(1)(d)(ii)(A)(II) the employees of a subsidiary or affiliate of an employer or association;
(1)(d)(ii)(B) the program involves the use of insurance issued by an insurer; and
(1)(d)(ii)(C) the employer, association, officer, director, employee, or trustee is not in any manner compensated, directly or indirectly, by the company issuing the contract;
(1)(e) an employee of an insurer or organization employed by an insurer who:
(1)(e)(i) is engaging in:
(1)(e)(i)(A) the inspection, rating, or classification of risks; or
(1)(e)(i)(B) the supervision of the training of insurance producers; and
(1)(e)(ii) is not individually engaged in the sale, solicitation, or negotiation of insurance;
(1)(f) a person whose activities in this state are limited to advertising:
(1)(f)(i) without the intent to solicit insurance in this state;
(1)(f)(ii) through communications in mass media including:
(1)(f)(ii)(A) a printed publication; or
(1)(f)(ii)(B) a form of electronic mass media;
(1)(f)(iii) that is distributed to residents outside of the state; and
(1)(f)(iv) if the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in this state;
(1)(g) a person who:
(1)(g)(i) is not a resident of this state;
(1)(g)(ii) sells, solicits, or negotiates a contract of insurance:
(1)(g)(ii)(A) for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract; and
(1)(g)(ii)(B) insures risks located in a state in which the person is licensed as provided in Subsection (1)(g)(iii); and
(1)(g)(iii) is licensed as an insurance producer to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business; or
(1)(h) if the employee does not sell, solicit, or receive a commission for a contract of insurance, a salaried full-time employee who counsels or advises the employee's employer relating to the insurance interests of:
(1)(h)(i) the employer; or
(1)(h)(ii) a subsidiary or business affiliate of the employer.
(2) The commissioner may by rule exempt a class of persons from the license requirement of Subsection 31A-23a-103(1) if:
(2)(a) the functions performed by the class of persons does not require:
(2)(a)(i) special competence;
(2)(a)(ii) special trustworthiness; or
(2)(a)(iii) regulatory surveillance made possible by licensing; or
(2)(b) other existing safeguards make regulation unnecessary.