Section 27-7-5

Licenses - Qualifications.

(a) An individual applying for a resident insurance producer license shall make application to the commissioner on the Uniform Application, and an individual applying for a service representative license shall make application to the commissioner on the application prescribed by the commissioner, each declaring under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief. Before approving the application, the commissioner shall find that the individual has satisfied all of the following:

(1) The individual is at least 18 years of age.

(2) The individual has not committed any act that is a ground for denial, suspension, or revocation set forth in Section 27-7-19.

(3) The individual has completed a prelicensing course of study for the lines of authority for which the person has applied, consisting of 40 classroom hours or equivalent individual instruction on the general principles of insurance, the course to be taught only by those educational institutions, junior or senior colleges, technical colleges, trade schools, insurance companies, or insurance trade organizations which hold written authority from the commissioner to issue certificates of completion.

a. Each authority holder must apply annually for the continued authority to issue certificates under rules and regulations to be prescribed by the commissioner.

b. Prior to writing the designated examination for license, the applicant must furnish a certificate of completion of the aforesaid prelicensing course from the authorized educational institution, insurance company, or insurance trade organization.

c. All applicants for a license to transact the life lines of authority who are holders of the professional designation chartered life underwriter (CLU); all applicants for a license to transact the property lines of authority who are holders of the professional designations chartered property casualty underwriter (CPCU) or certified insurance counselor (CIC); or other similar professional insurance designations as the commissioner may prescribe by regulation shall be deemed to have completed the prelicensing course as prescribed in this subdivision.

d. All applicants for a license to transact only the following lines of authority shall be exempt from the requirements of this subdivision:

1. Industrial fire, commonly known as debit fire, insurance.

2. Limited lines insurance.

e. All producers and service representatives who are lawfully licensed for a particular line of authority as an agent, broker, solicitor, or service representative immediately prior to January 1, 2002, are exempt from the requirements of this subdivision for that line of authority unless, after January 1, 2002, the license is permitted to expire or is otherwise terminated and remains out of effect for a period of 12 consecutive months, in which case the exemption from the prelicensing course shall no longer be applicable.

(4) The individual has successfully passed the examination for the lines of authority for which the individual has applied, except that no examination shall be required of an applicant as follows:

a. All applicants for a license to transact only one or more of the limited lines insurance.

b. All applicants for a license to transact the life lines of authority who are holders of the professional designation chartered life underwriter (CLU).

c. All applicants for a license to transact the property lines of authority who are holders of the professional designation chartered property casualty underwriter (CPCU) or certified insurance counselor (CIC).

d. The commissioner may prescribe by regulation other similar professional insurance designations as exemptions from the examination requirement for particular lines of authority.

e. All producers lawfully licensed for a particular line of authority as an agent, broker, solicitor, or service representative immediately prior to January 1, 2002, are exempt from the requirements of this subdivision for that line of authority unless, after January 1, 2002, the license is permitted to expire or is otherwise terminated and remains out of effect for a period of 12 consecutive months, in which case the exemption from examination shall no longer be applicable.

f. All service representatives.

(5) The individual has paid the fees set forth in Section 27-4-2.

(b) A business entity acting as an insurance producer is required to obtain an insurance producer license. Application shall be made using the Uniform Business Entity Application. Before approving the application, the commissioner shall find that the business entity has satisfied all of the following:

(1) A licensed individual producer has been designated responsible for the business entity's compliance with the insurance laws, rules, and regulations of this state.

(2) The business entity has paid the fees set forth in Section 27-4-2.

(c) The commissioner may require any documents reasonably necessary to verify the information contained in an application.

(d) Each insurer that sells, solicits, or negotiates any form of limited line credit insurance shall provide to each individual whose duties will include selling, soliciting, or negotiating limited line credit insurance a program of instruction.

(Acts 1957, No. 530, p. 726, §4; Acts 1959, 2nd Ex. Sess., No. 73, p. 250; Acts 1971, No. 407, p. 707, §120; Acts 1971, 3rd Ex. Sess., No. 261, p. 4529; Acts 1979, No. 79-748, p. 1332; Acts 1988, No. 88-123, p. 159, §1; Acts 1989, No. 89-815, p. 1629; Acts 1997, No. 97-555, p. 982, §1; Act 2001-702, p. 1509, §3.)