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December 21, 2024 Snow | 28°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 162J: Insurance producer license; persons not required to be licensed

Section 162J. (a) Nothing in sections 162H to 162X, inclusive, shall 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.

(b) A license as an insurance producer shall not be required of the following:—

(1) an officer, director or employee of an insurer or of an insurance producer if 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 the commonwealth and:—

(i) 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;

(ii) 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

(iii) the officer, director or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where 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;

(2) 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; issuing certificates under plans or otherwise assisting in administering plans; or performs administrative services related to mass marketed property and casualty insurance; where no commission is paid to the person for the service;

(3) 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, director 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;

(4) employees of insurers or organizations employed by insurers who are engaging in the inspection, rating or classification of risks, or in the supervision of the training of insurance producers and who are not individually engaged in the sale, solicitation or negotiation of insurance;

(5) a person whose activities in the commonwealth are limited to advertising without the intent to solicit insurance in the commonwealth through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of the state if the person does not sell, solicit or negotiate insurance that would insure risks residing, located or to be performed in the commonwealth;

(6) a person who is not a resident of the commonwealth who sells, solicits or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than 1 state insured under that contract if 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;

(7) a salaried full-time employee who counsels or advises his employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer if the employee does not sell or solicit insurance or receive a commission; or

(8) a person, and an officer, director or employee of said person, who has obtained a Class 1 or Class 2 license under sections 58 and 59 of chapter 140, and who sells, solicits, or negotiates credit life, credit disability, and guaranteed automobile protection insurance in conjunction with an executed sales or lease contract for a motor vehicle.