Can a person enrolling someone in a group insurance policy secure and furnish information about the policy to a customer and still be exempt from licensure?
Answer 15: Yes, as set forth in Section 4B(2) of the PLMA, there is an exception which allows a group enroller to secure and furnish information about the group insurance policy to a customer, provided no commission is paid or there is no selling, solicitation or negotiation. However, Section 4B(2) generally recognizes an exception for purposes of enrolling individuals under plans, issuing certificates under plans, assisting with the administration of plans, and performing administrative services related to the mass marketing of property and casualty insurance. Note: It is important to note that individual state laws and factual circumstances will control in determining whether an activity involves selling, solicitation or negotiation. Likewise, the states will have discretion in interpreting what activities constitute the ‘securing or furnishing’ of information. Question 16: With regard to products sold by life insurers, does the qualification in the Producer Licensing Model Act (PLMA
Answer 15: Yes, as set forth in Section 4B(2) of the PLMA, there is an exception which allows a group enroller to secure and furnish information about the group insurance policy to a customer, provided no commission is paid or there is no selling, solicitation or negotiation. However, Section 4B(2) generally recognizes an exception for purposes of enrolling individuals under plans, issuing certificates under plans, assisting with the administration of plans, and performing administrative services related to the mass marketing of property and casualty insurance. Note: It is important to note that individual state laws and factual circumstances will control in determining whether an activity involves selling, solicitation or negotiation. Likewise, the states will have discretion in interpreting what activities constitute the ‘securing or furnishing’ of information.
Related Questions
- Can a person enrolling someone in a group insurance policy secure and furnish information about the policy to a customer and still be exempt from licensure?
- If a commission is paid to enroll a customer in a group credit insurance policy, must the enroller be licensed?
- What will happen if the motorist insurance policy limit is too low to cover an injured persons medical bills?
