§ 27-2.4-5 - Exceptions to licensing. - Rhode Island Statutes

SECTION 27-2.4-5

   § 27-2.4-5  Exceptions to licensing. –(a) Nothing in this chapter shall be construed to require an insurer to obtainan insurance producer license. In this section, the term "insurer" does notinclude an insurer's officers, directors, employees, subsidiaries or affiliates.

   (b) A license as an insurance producer shall not be requiredof the following:

   (1) An officer, director or employee of an insurer or of aninsurance producer, provided that the officer, director or employee does notreceive any commission or fees on policies written or sold to insure risksresiding, located or to be performed in this state; and:

   (i) The officer, director or employee's activities areexecutive, administrative, managerial, clerical or a combination of these, andare only indirectly related to the sale, solicitation or negotiation ofinsurance; or

   (ii) The officer, director or employee's function relates tounderwriting, loss control, inspection or the processing, adjusting,investigating or settling of a claim on a contract of insurance; or

   (2) The officer, director or employee is acting in thecapacity of a special agent or agency supervisor assisting insurance producerswhere the person's activities are limited to providing technical advice andassistance to licensed insurance producers and do not include the sale,solicitation or negotiation of insurance;

   (3) A person who secures and furnishes information: (i) forthe purpose of group life insurance, group property and casualty insurance,group annuities, group or blanket accident and health insurance; or (ii) forthe purpose of enrolling individuals under plans, issuing certificates underplans or assisting in administering plans; or (iii) performs administrativeservices related to mass marketed property and casualty insurance; where nocommission or fee is paid to the person for the service;

   (4) An employer or association or its officers, directors,employees, or the trustees of an employee trust plan, to the extent that theemployers, officers, employees, director or trustees are engaged in theadministration or operation of a program of employee benefits for theemployer's or association's own employees or the employees of its subsidiariesor affiliates, which program involves the use of insurance issued by aninsurer, as long as the employers, associations, officers, directors, employeesor trustees are not in any manner compensated, directly or indirectly, by thecompany issuing the contracts;

   (5) Employees of insurers or organizations employed byinsurers who are engaging in the inspection, rating or classification of risks,or in the supervision of the training of insurance producers and who are notindividually engaged in the sale, solicitation or negotiation of insurance;

   (6) A person whose activities in this state are limited toadvertising without the intent to solicit insurance in this state throughcommunications in printed publications or other forms of electronic mass mediawhose distribution is not limited to residents of the state, provided that theperson does not sell, solicit or negotiate insurance that would insure risksresiding, located or to be performed in this state;

   (7) A person who is not a resident of this state who sells,solicits or negotiates a contract of insurance for commercial property andcasualty risks to an insured with risks located in more than one state insuredunder that contract, provided that that person is licensed as an insuranceproducer to sell, solicit or negotiate that insurance in the state where theinsured maintains its principal place of business and the contract of insuranceinsurers risks located in that state;

   (8) A salaried full-time employee who counsels or advises hisor her employer relative to the insurance interests of the employer or of thesubsidiaries or business affiliates of the employer provided that the employeedoes not sell or solicit insurance or receive a commission;

   (9) A person engaged or employed as an attorney licensed topractice law in Rhode Island and provided those persons do not sell, solicit ornegotiate insurance;

   (10) An actuary or a certified public accountant engaged oremployed in a consulting capacity performing duties incidental to that positionand provided those persons do not sell, solicit or negotiate insurance;

   (11) A licensed public adjuster acting within the scope of anapplicable license and provided those persons do not sell, solicit or negotiateinsurance; or

   (12) Rental car companies and their employees principallyengaged in the rental of motor vehicles and which offer in connection with andincidental to the rental of those motor vehicles various optional insurancecoverage during the term of the rental agreement which shall be no more thansixty (60) days.