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Difficulty: EasyLicensing Requirements and Types

Under standard state insurance regulations, which of the following individuals is legally required to hold an active insurance producer license?

  1. A
    A payroll supervisor who deducts group health insurance premiums from employees' weekly wages.
  2. B
    A corporate officer of an insurance carrier who oversees the underwriting department and receives an annual salary.
  3. A call center representative who recommends specific life insurance coverage limits to incoming callers based on their financial needs.Answer
  4. D
    An administrative assistant at a local agency who answers phones and schedules appointments for the agency owner.

Answer

The call center representative who recommends specific coverage limits must be licensed.
State regulations mandate that any individual who solicits, negotiates, or sells insurance must hold a valid producer license. Recommending specific coverage limits based on a client's financial needs constitutes negotiating and soliciting, meaning the representative must be licensed.

Step-by-Step Solution

1
Analyze the activities of each individual described in the options.
Identify whether the activity involves soliciting, negotiating, or selling insurance.
State laws require a producer license only for individuals who actively solicit, negotiate, or sell insurance contracts.
2
Evaluate the exceptions and clerical duties.
The payroll supervisor, corporate officer, and administrative assistant perform exempt administrative, managerial, or clerical duties.
Standard regulations exempt individuals who do not receive commissions and whose activities do not directly involve selling or advising on policies.
3
Identify the non-exempt activity.
The call center representative is advising callers on coverage limits.
Recommending specific coverages and advising on financial needs is considered negotiating and soliciting, which strictly requires a license.

Key Concept

Producer Licensing Exemptions and Requirements
Estimated Time:45s
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Topics

Licensing Requirements and Types

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