If a preneed entity uses group life insurance to fund the preneed contracts, does the preneed sales agent need to hold an insurance producer license to sell life insurance?
A. If the preneed sales agent or employee’s insurance related activity is strictly limited to obtaining information needed to enroll a preneed contract beneficiary in a group insurance plan or to issue that person a certificate of insurance under a group insurance plan and the preneed sales agent or employee is not paid a commission for such activity, an insurance producer license is not necessary. A person not properly licensed as an insurance producer cannot engage in activity which is the sale, solicitation, or negotiation of insurance.
Related Questions
- If a preneed entity uses individual life insurance to fund the preneed contracts, does the preneed sales agent need to hold an insurance producer license to sell life insurance?
- If a preneed entity uses group life insurance to fund the preneed contracts, does the preneed sales agent need to hold an insurance producer license to sell life insurance?
- If a preneed entity is using life insurance to fund the preneed contracts, is a trust needed?
