SF0059 - Insurance producer licensing.
|
2001 |
State of Wyoming |
01LSO-0178 |
SENATE FILE NO. SF0059
Insurance producer licensing.
Sponsored by: Joint Corporations, Elections and Political
Subdivisions
Interim Committee
A BILL
for
1 AN ACT relating to
insurance; adopting insurance producer
2 licensing
model act; specifying conditions and requirements
3 for
licensure generally; modifying provisions relating to
4
licensure of persons engaged in the insurance business and
5
requirements related to resident and nonresident licensees;
6 modifying, repealing and rearranging insurance licensing
7
statutes generally; repealing solicitor licensing
8
provisions; making conforming amendments; and providing for
9 an
effective date.
10
11 Be It Enacted by the Legislature of the State of Wyoming:
12
13 Section 1. W.S. 26-9-201
through 26-9-218 are created
14 to read:
15
16 26-9-201. Purpose and scope.
Page 1
1
2
This chapter governs the qualifications and procedures for
3 the
licensing of insurance producers. This
chapter does
4 not
apply to excess and surplus lines brokers licensed
5
pursuant to W.S. 26-11-112 except as provided in W.S.
6 26-9-207(h)
and 26-9-208 or as expressly provided in
7
chapter 11 of this code.
8
9 26-9-202. Definitions.
10
11 (a) As used in this chapter:
12
13 (i) "Business
entity" means a corporation,
14 association, partnership, limited liability
company,
15 limited liability partnership or other legal
entity;
16
17 (ii) "Home
state" means the District of Columbia
18 and any state or territory of the United
States in which an
19 insurance producer maintains his principal
place of
20 residence or principal place of business and
is licensed to
21 act as an insurance producer;
22
23 (iii) "License"
means a document issued by the
24 commissioner authorizing a person to act as
an insurance
Page 2
1
producer for the lines of authority specified in the
2
document. The license itself does not create any authority,
3 actual,
apparent or inherent, in the holder to represent or
4
commit an insurer;
5
6 (iv) "Limited
line credit insurance" includes
7
credit life, credit disability, credit property, credit
8
unemployment, involuntary unemployment, mortgage life,
9
mortgage guaranty, mortgage disability, guaranteed
10 automobile protection insurance, and any
other form of
11 insurance offered in connection with an
extension of credit
12 that is limited to partially or wholly
extinguishing that
13 credit obligation that the commissioner
determines should
14 be designated a form of limited line credit
insurance;
15
16 (v) "Limited
line credit insurance producer"
17 means a person who sells, solicits or
negotiates one (1) or
18 more forms of limited line credit insurance
coverage to
19 individuals through a master, corporate,
group or
20 individual policy;
21
22 (vi) "Limited
lines insurance" means those lines
23 of insurance referred to in W.S. 26-9-209(c),
26-9-221,
24 26-29-233, 26-32-101, 26-36-113, 26-37-102(a)(iv)
or
Page 3
1 31-14-120
or any other line of insurance the commissioner
2
deems necessary to recognize for the purposes of complying
3
with W.S. 26-9-208(e);
4
5 (vii) "Limited
lines producer" means a person
6
authorized by the commissioner to sell, solicit or
7
negotiate limited lines insurance;
8
9 (viii) "Negotiate"
means the act of conferring
10 directly with or offering advice directly to
a purchaser or
11 prospective purchaser of a particular
contract of insurance
12 concerning any of the substantive benefits,
terms or
13 conditions of the contract, provided that
the person
14 engaged in that act either sells insurance
or obtains
15 insurance from insurers for purchasers;
16
17 (ix) "Sell"
means to exchange a contract of
18 insurance by any means, for money or its
equivalent, on
19 behalf of an insurer;
20
21 (x) "Solicit"
means attempting to sell insurance
22 or asking or urging a person to apply for a
particular kind
23 of insurance from a particular insurer;
24
Page 4
1 (xi) "Terminate"
means the cancellation of the
2
relationship between an insurance producer and the insurer
3 or
the termination of a producer's authority to transact
4
insurance;
5
6 (xii) "Uniform
application" means the current
7
version of the National Association of Insurance
8
Commissioners' uniform application for resident and
9
nonresident producer licensing;
10
11 (xiii) "Uniform
business entity application"
12 means the current version of the National
Association of
13 Insurance Commissioners' uniform business
entity
14 application for resident and nonresident
business entities.
15
16 26-9-203. License required.
17
18 A person shall not sell, solicit or
negotiate insurance in
19 this state for any class or classes of
insurance unless the
20 person is licensed for that line of
authority in accordance
21 with this chapter.
22
23 26-9-204. Exceptions to licensing.
24
Page 5
1 (a) Nothing in
this chapter shall be construed to
2
require an insurer to obtain an insurance producer license.
3 As
used in this section, the term "insurer" does not
4
include an insurer's officers, directors, employees,
5
subsidiaries or affiliates.
6
7 (b) A license
as an insurance producer shall not be
8
required of the following:
9
10 (i) An officer,
director or employee of an
11 insurer or of an insurance producer,
provided that the
12 officer, director or employee does not
receive any
13 commission on policies written or sold to
insure risks
14 residing, located or to be performed in this
state, and:
15
16 (A) The
officer, director or employee's
17 activities are executive, administrative,
managerial,
18 clerical or a combination of these, and are
only indirectly
19 related to the sale, solicitation or
negotiation of
20 insurance; or
21
22 (B) The
officer, director or employee's
23 function relates to underwriting, loss
control, inspection
Page 6
1 or
the processing, adjusting, investigating or settling of
2 a
claim on a contract of insurance; or
3
4 (C) The
officer, director or employee is
5
acting in the capacity of a special agent or agency
6
supervisor assisting insurance producers where the person's
7 activities
are limited to providing technical advice and
8
assistance to licensed insurance producers and do not
9
include the sale, solicitation or negotiation of insurance.
10
11 (ii) A person
who receives no commission and
12 provides the following services:
13
14 (A) Secures and
furnishes information for
15 the purpose of group life insurance, group
property and
16 casualty insurance, group annuities, group
or blanket
17 accident and health or disability insurance;
or
18
19 (B) Secures and
furnishes information for
20 the purpose of enrolling individuals under
plans, issuing
21 certificates under plans or otherwise
assisting in
22 administering plans; or
23
Page 7
1 (C) Performs
administrative services
2
related to mass marketed property and casualty insurance.
3
4 (iii) An employer
or association or its
5
officers, directors, employees, or the trustees of an
6
employee trust plan, to the extent that the employers,
7
officers, employees, directors or trustees are engaged in
8 the
administration or operation of a program of employee
9
benefits for the employer's or association's own employees
10 or the employees of its subsidiaries or
affiliates, which
11 program involves the use of insurance issued
by an insurer,
12 as long as the employers, associations,
officers,
13 directors, employees or trustees are not in
any manner
14 compensated, directly or indirectly, by the
company issuing
15 the contracts;
16
17 (iv) Employees
of insurers or organizations
18 employed by insurers who are engaging in the
inspection,
19 rating or classification of risks, or in the
supervision of
20 the training of insurance producers and who
are not
21 individually engaged in the sale,
solicitation or
22 negotiation of insurance;
23
Page 8
1 (v) A person
whose activities in this state are
2
limited to advertising without the intent to solicit
3
insurance in this state through communications in printed
4
publications or other forms of electronic mass media whose
5
distribution is not limited to residents of the state,
6
provided that the person does not sell, solicit or
7
negotiate insurance that would insure risks residing,
8
located or to be performed in this state;
9
10 (vi) A person
who is not a resident of this
11 state who sells, solicits or negotiates a
contract of
12 insurance for commercial property and
casualty risks to an
13 insured with risks located in more than one
(1) state
14 insured under that contract, provided that
person is
15 otherwise licensed as an insurance producer
to sell,
16 solicit or negotiate the insurance in the
state where the
17 insured maintains its principal place of
business and the
18 contract of insurance insures risks located in
that state;
19 or
20
21 (vii) A salaried
full-time employee who counsels
22 or advises his employer relative to the
insurance interests
23 of the employer or of the subsidiaries or
business
Page 9
1
affiliates of the employer provided the employee does not
2
sell or solicit insurance or receive a commission.
3
4 26-9-205. Application for examination.
5
6 (a) A resident
individual applying for an insurance
7
producer license shall pass a written examination unless
8
exempt pursuant to W.S. 26-9-209. The examination shall
9
test the knowledge of the individual concerning the lines
10 of authority for which application is made,
the duties and
11 responsibilities of an insurance producer
and the insurance
12 laws and regulations of this state.
Examinations required
13 by this section shall be developed and
conducted by the
14 commissioner who shall adhere to the
applicable
15 instructions or recommendations of the state
board of
16 insurance agents' examiners as provided by
W.S. 26-10-104.
17
18 (b) The
commissioner and the state board of insurance
19 agents' examiners may make arrangements,
including
20 contracting with an outside testing service,
for
21 administering examinations. If an outside testing service
22 is employed, each individual applying for an
examination
23 shall remit the appropriate fee for the
examination to the
24 testing service.
Page 10
1
2 26-9-206. Application for license.
3
4 (a) A person
applying for a resident insurance
5
producer license shall make application to the commissioner
6 on
the uniform application and declare under penalty of
7
refusal, suspension or revocation of the license that the
8
statements made in the application are true, correct and
9 complete
to the best of the individual's knowledge and
10 belief. Before approving the application,
the commissioner
11 shall find that the individual:
12
13 (i) Is at least eighteen (18) years of age;
14
15 (ii) Has not
committed any act that is a ground
16 for denial, suspension or revocation set
forth in W.S.
17 26-9-211;
18
19 (iii) Has paid
the fees set forth in W.S.
20 26-4-101(a);
21
22 (iv) Has
successfully passed the examinations
23 for the lines of authority for which the
person has
24 applied; and
Page 11
1
2 (v) Has
provided the commissioner a credit and
3
investigation report on the applicant from a recognized and
4
established independent investigation and reporting agency.
5 The
cost of the report shall be paid by the applicant.
6
7 (b) A business
entity acting as an insurance producer
8 is
required to obtain an insurance producer license.
9
Application shall be made using the uniform business entity
10 application. Before approving the
application, the
11 commissioner shall find that:
12
13 (i) The
business entity has paid the fees set
14 forth in W.S. 26-4-101(a); and
15
16 (ii) The
business entity has designated a
17 licensed producer responsible for the
business entity's
18 compliance with the insurance laws, rules
and regulations
19 of this state.
20
21 (c) The
commissioner may require any documents
22 reasonably necessary to verify the
information contained in
23 an application.
24
Page 12
1 (d) Each
insurer that sells, solicits or negotiates
2 any
form of limited line credit insurance shall provide to
3
each individual whose duties will include selling,
4
soliciting or negotiating limited line credit insurance a
5
program of instruction.
6
7 26-9-207. License.
8
9 (a) Unless
denied licensure pursuant to W.S.
10 26-9-211, persons who have met the
requirements of W.S.
11 26-9-205 and 26-9-206 shall be issued an
insurance producer
12 license. An insurance producer may receive
qualification
13 for a license in one (1) or more of the
following lines of
14 authority:
15
16 (i) Life -
insurance coverage on human lives
17 including benefits of endowment and
annuities, and may
18 include benefits in the event of death or
dismemberment by
19 accident and benefits for disability income;
20
21 (ii) Accident
and health or sickness or
22 disability - insurance coverage for
sickness, bodily injury
23 or accidental death and may include benefits
for disability
24 income;
Page 13
1
2 (iii) Property -
insurance coverage for the
3
direct or consequential loss or damage to property of every
4
kind;
5
6 (iv) Casualty -
insurance coverage against legal
7 liability,
including that for death, injury or disability
8 or
damage to real or personal property;
9
10 (v) Variable
life and variable annuity products
11 - insurance coverage provided under variable
life insurance
12 contracts and variable annuities;
13
14 (vi) Personal
lines - property and casualty
15 insurance coverage sold to individuals and
families for
16 primarily noncommercial purposes;
17
18 (vii) Credit - limited line credit insurance;
19
20 (viii) Any other
line of insurance permitted
21 under state laws or regulations.
22
23 (b) An
insurance producer license shall remain in
24 effect unless revoked or suspended as long
as on or before
Page 14
1
March 31, the annual continuation fee set forth in W.S.
2 26-4-101(a)
is paid, the continuing education requirements
3 for
resident individual producers are met by the due date
4 and
a written request for continuation of the license is
5
made to the commissioner on forms prescribed by the
6
commissioner.
7
8 (c) An
individual insurance producer who allows his
9
license to lapse may, within twelve (12) months from the
10 due date of the annual continuation fee,
reinstate the same
11 license without the necessity of passing a
written
12 examination. However, a penalty equal to the
amount of the
13 unpaid annual continuation fee shall be
required in
14 addition to the unpaid fee for any annual
continuation
15 request received after the due date.
16
17 (d) A licensed
insurance producer who is unable to
18 comply with license renewal procedures due
to military
19 service or some other extenuating
circumstance such as a
20 long-term medical disability may request a
waiver of those
21 procedures. The producer may also request a
waiver of any
22 examination requirement or any other fine or
sanction
23 imposed for failure to comply with renewal
procedures.
24
Page 15
1 (e) The license
shall contain the licensee's name,
2
address, personal identification number, date of issuance,
3 the
lines of authority, the expiration date and any other
4
information the commissioner deems necessary.
5
6 (f) Licensees
shall inform the commissioner by any
7
means acceptable to the commissioner of a change of address
8
within thirty (30) days of the change.
9
10 (g) The
commissioner may contract with
11 nongovernmental entities, including the
National
12 Association of Insurance Commissioners or
any affiliates or
13 subsidiaries that association oversees, to
perform any
14 ministerial functions, including the
collection of fees,
15 related to producer licensing that the
commissioner and the
16 nongovernmental entity may deem appropriate.
17
18 (h) Each
service representative, adjuster and surplus
19 line broker license issued under this code
shall continue
20 in force until expired, suspended, revoked
or otherwise
21 terminated, if the applicable continuation
fee specified in
22 W.S. 26-4-101 is paid to the commissioner,
annually, on or
23 before March 31, accompanied by a written
request for
24 continuation made as follows:
Page 16
1
2 (i) As to
adjuster and surplus line broker
3
licenses, request made and signed by the licensee;
4
5 (ii) As to
service representative licenses,
6 request
made and signed by the employer as to whom
7
licensed.
8
9 (j) Any license
referred to in subsection (h) of this
10 section is considered expired if the
commissioner does not
11 receive the fee and the request for
continuation by
12 midnight on March 31, except that any holder
of such a
13 license who allows his license to lapse may,
within twelve
14 (12) months from the due date of the annual
continuation
15 fee, reinstate the same license without the
necessity of
16 passing a written examination. However, a
penalty equal to
17 the amount of the unpaid annual continuation
fee shall be
18 required in addition to the unpaid fee for
any annual
19 continuation request received after the due
date.
20
21 26-9-208. Nonresident licensing.
22
Page 17
1 (a) Unless
denied licensure pursuant to W.S.
2 26-9-211,
a nonresident person shall receive a nonresident
3
producer license if:
4
5 (i) The person
is currently licensed as a
6
resident and is in good standing in his home state;
7
8 (ii) The person
has submitted the proper request
9 for
licensure and has paid the fees required by W.S.
10 26-4-101(a);
11
12 (iii) The person
has submitted or transmitted to
13 the commissioner the application for licensure
the person
14 submitted to his home state, or in lieu of
the same, a
15 completed uniform application; and
16
17 (iv) The
person's home state awards nonresident
18 producer licenses to residents of this state
on the same
19 basis.
20
21 (b) The
commissioner may verify the producer's
22 licensing status through the producer
database maintained
23 by the National Association of Insurance
Commissioners, its
24 affiliates or subsidiaries.
Page 18
1
2 (c) A
nonresident producer who moves from one (1)
3
state to another or a resident producer who moves from this
4
state to another state shall file a change of address and
5
provide certification from the new resident state within
6
thirty (30) days of the change of legal residence. No fee
7 or
license application is required.
8
9 (d) Notwithstanding
any other provision of this
10 chapter, a person licensed as a surplus
lines producer in
11 his home state shall receive a nonresident
surplus lines
12 producer license pursuant to subsection (a)
of this
13 section. Except as to subsection (a) of this
section,
14 nothing in this section otherwise amends or
supercedes any
15 provision of chapter 11 of this code.
16
17 (e) Notwithstanding
any other provision of this
18 chapter, a person licensed as a limited line
credit
19 insurance or other type of limited lines
producer in his
20 home state shall receive a nonresident
limited lines
21 producer license, pursuant to subsection (a)
of this
22 section, granting the same scope of
authority as granted
23 under the license issued by the producer's
home state. For
24 the purposes of this subsection, limited
line insurance is
Page 19
1 any
authority granted by the home state which restricts the
2
authority of the license to less than the total authority
3
prescribed in the associated major lines pursuant to W.S.
4 26-9-207(a)(i)
through (vi).
5
6 26-9-209. Exemption from examination.
7
8 (a) An
individual who applies for an insurance
9
producer license in this state who was previously licensed
10 for the same lines of authority in another
state shall not
11 be required to complete an examination. This
exemption is
12 only available if the person is currently
licensed in that
13 state or if the application is received
within ninety (90)
14 days of the cancellation of the applicant's
previous
15 license and if the prior state issues a
certification that,
16 at the time of cancellation, the applicant
was in good
17 standing in that state or the state's
producer database
18 records, maintained by the National
Association of
19 Insurance Commissioners, its affiliates or
subsidiaries,
20 indicate that the producer is or was
licensed in good
21 standing for the line of authority
requested.
22
23 (b) A person
licensed as an insurance producer in
24 another state who moves to this state shall
make
Page 20
1
application within ninety (90) days of establishing legal
2
residence to become a resident licensee pursuant to W.S.
3 26-9-206.
No examination shall be required of that person
4 to
obtain any line of authority previously held in the
5
prior state except where the commissioner determines
6
otherwise by regulation.
7
8 (c) No
examination shall be required of persons
9
representing public carriers who, in the course of that
10 representation, solicit or sell insurance
incidental to the
11 transportation of persons or to the storage
or
12 transportation of property. Persons exempted
from
13 examination pursuant to this subsection may
be issued
14 annually as of April 1, a limited insurance
representative
15 license by the commissioner upon submission
of an
16 application approved by the commissioner and
payment of an
17 annual fee of ten dollars ($10.00).
Licensees under this
18 subsection shall be subject to the
application requirements
19 established by the commissioner, the
provisions of W.S.
20 26-9-211 and chapter 13 of this code but
shall not be
21 subject to the other provisions of this
code.
22
23 26-9-210. Temporary licensing.
24
Page 21
1 (a) The
commissioner may issue a temporary insurance
2
producer license for a period not to exceed one hundred
3
eighty (180) days without requiring an examination if the
4
commissioner deems that the temporary license is necessary
5 for
the servicing of an insurance business in the following
6
cases:
7
8 (i) To the
surviving spouse or court-appointed
9
personal representative of a licensed insurance producer
10 who dies or becomes mentally or physically
disabled to
11 allow adequate time for the sale of the
insurance business
12 owned by the producer or for the recovery or
return of the
13 producer to the business or to provide for
the training and
14 licensing of new personnel to operate the
producer's
15 business;
16
17 (ii) To a member
or employee of a business
18 entity licensed as an insurance producer,
upon the death or
19 disability of an individual designated in
the business
20 entity application or the license;
21
22 (iii) To the
designee of a licensed insurance
23 producer entering active service in the
armed forces of the
24 United States; or
Page 22
1
2 (iv) In any
other circumstance where the
3
commissioner deems that the public interest will best be
4
served by the issuance of this license.
5
6 (b) The
commissioner may by order limit the authority
7 of
any temporary licensee in any way deemed necessary to
8 protect
insureds and the public. The commissioner may
9
require the temporary licensee to have a suitable sponsor
10 who is a licensed producer or insurer and
who assumes
11 responsibility for all acts of the temporary
licensee and
12 may impose other similar requirements
designed to protect
13 insureds and the public. The commissioner
may by order
14 revoke a temporary license if the interest
of insureds or
15 the public are endangered. A temporary
license may not
16 continue after the owner or the personal
representative
17 disposes of the business.
18
19 26-9-211. License denial, nonrenewal or revocation.
20
21 (a) The
commissioner may, after appropriate notice
22 and opportunity for hearing pursuant to the
Wyoming
23 Administrative Procedure Act and in
accordance with W.S.
24 26-2-125 through 26-2-129, place on
probation, suspend,
Page 23
1
revoke or refuse to issue or renew an insurance producer's
2
license or may levy a civil penalty in accordance with W.S.
3 26-1-107
or any combination of actions, for any one (1) or
4
more of the following causes:
5
6 (i) Providing
incorrect, misleading, incomplete
7 or
materially untrue information in the license
8
application;
9
10 (ii) Violating
any insurance laws, or violating
11 any regulation, subpoena or order of the
commissioner or of
12 another state's insurance commissioner;
13
14 (iii) Obtaining
or attempting to obtain a
15 license through misrepresentation or fraud;
16
17 (iv) Improperly
withholding, misappropriating or
18 converting any monies or properties received
in the course
19 of doing insurance business;
20
21 (v) Intentionally
misrepresenting the terms of
22 an actual or proposed insurance contract or
application for
23 insurance;
24
Page 24
1 (vi) Having been convicted of a felony;
2
3 (vii) Having
admitted or been found to have
4
committed any insurance unfair trade practice or fraud;
5
6 (viii) Using
fraudulent, coercive or dishonest
7
practices, or demonstrating incompetence, untrustworthiness
8 or
financial irresponsibility in the conduct of business in
9
this state or elsewhere;
10
11 (ix) Having an
insurance producer license, or
12 its equivalent, denied, suspended or revoked
in any other
13 state, province, district or territory;
14
15 (x) Forging
another's name to an application for
16 insurance or to any document related to an
insurance
17 transaction;
18
19 (xi) Improperly
using notes or any other
20 reference material to complete an
examination for an
21 insurance license; or
22
23 (xii) Failing to
comply with an administrative
24 or court order imposing a child support
obligation.
Page 25
1
2 (b) The license
of a business entity may be
3
suspended, revoked or refused if the commissioner finds,
4
after notice and opportunity for hearing, that an
5
individual licensee's violation was known by one (1) or
6
more of the partners, officers or managers acting on behalf
7 of the
business entity and the violation was neither
8
reported to the commissioner nor corrective action taken.
9
10 (c) The
commissioner shall retain the authority to
11 enforce the provisions of and impose any
penalty or remedy
12 authorized by this chapter and this code
against any person
13 who is under investigation for or charged
with a violation
14 of this chapter or this code even if the
person's license
15 or registration has been surrendered or has
lapsed by
16 operation of law.
17
18 26-9-212. Commissions.
19
20 (a) An insurer
or insurance producer shall not pay a
21 commission, service fee, brokerage or other
valuable
22 consideration to a person for selling,
soliciting or
23 negotiating insurance in this state if that
person is
Page 26
1
required to be licensed under this chapter and is not so
2
licensed.
3
4 (b) A person
shall not accept a commission, service
5
fee, brokerage or other valuable consideration for selling,
6 soliciting
or negotiating insurance in this state if that
7
person is required to be licensed under this chapter and is
8 not
so licensed.
9
10 (c) Renewal or
other deferred commissions may be paid
11 to a person for selling, soliciting or negotiating
12 insurance in this state if the person was
required to be
13 licensed under this chapter at the time of
the sale,
14 solicitation or negotiation and was so
licensed at that
15 time.
16
17 (d) An insurer
or insurance producer may pay or
18 assign commissions, brokerages or other
valuable
19 consideration to an insurance agency or to
persons who do
20 not sell, solicit or negotiate insurance in
this state,
21 unless the payment would violate W.S. 26-13-110
or
22 26-13-112.
23
24 26-9-213. Appointments.
Page 27
1
2 (a) An
insurance producer shall not act as an agent
3 of
an insurer unless the insurance producer becomes an
4
appointed agent of that insurer. An insurance producer who
5 is
not acting as an agent of an insurer is not required to
6
become appointed.
7
8 (b) To appoint
a producer as its agent, the
9
appointing insurer shall file, in a format approved by the
10 commissioner, a notice of appointment within
fifteen (15)
11 days from the date the agency contract is
executed or the
12 first insurance application is submitted. An
insurer may
13 also elect to appoint a producer to all or
some insurers
14 within the insurer's holding company system
or group by the
15 filing of a single appointment request.
16
17 (c) Upon
receipt of the notice of appointment, the
18 commissioner shall verify within a
reasonable time that the
19 insurance producer is eligible for
appointment. If the
20 insurance producer is determined to be
ineligible for
21 appointment, the commissioner shall notify
the insurer.
22
Page 28
1 (d) An insurer
shall pay a nonrefundable appointment
2
fee, in the amount set forth in W.S. 26-4-101(a), for each
3
insurance producer appointed by the insurer.
4
5 (e) An insurer
shall remit, in a manner prescribed by
6 the
commissioner, an annual nonrefundable continuation
7
appointment fee in the amount set forth in W.S.
8 26-4-101(a).
9
10 26-9-214. Notification to commissioner
of
11 termination.
12
13 (a) An insurer
or authorized representative of the
14 insurer that terminates the appointment,
employment,
15 contract or other insurance business
relationship with a
16 producer for any reason shall notify the
commissioner
17 within thirty (30) days following the
effective date of the
18 termination, using a format prescribed by
the commissioner.
19 Upon written request of the commissioner,
the insurer shall
20 provide additional information, documents,
records or other
21 data pertaining to the termination or
activity of the
22 producer.
23
Page 29
1 (b) The insurer
or the authorized representative of
2 the
insurer shall promptly notify the commissioner in a
3
format acceptable to the commissioner if, upon further
4 review
or investigation, the insurer discovers additional
5
information that would have been reportable to the
6
commissioner under subsection (a) of this section had the
7
insurer known of its existence.
8
9 (c) Within
fifteen (15) days after making the
10 notification required by subsections (a) and
(b) of this
11 section, the insurer shall mail a copy of
the notification
12 to the producer at his last known address.
13
14 (d) Within
thirty (30) days after the producer has
15 received the original or additional
notification, the
16 producer may file written comments
concerning the substance
17 of the notification with the commissioner.
The producer
18 shall, by the same means, simultaneously
send a copy of the
19 comments to the reporting insurer, and the
comments shall
20 be part of the commissioner's file and
accompany every copy
21 of a report distributed or disclosed for any
reason about
22 the producer as permitted under subsection
(e) or (f) of
23 this section.
24
Page 30
1 (e) Any
documents, materials or other information in
2 the
control or possession of the department that is
3
furnished by an insurer, producer or an employee or agent
4
thereof acting on behalf of the insurer or producer, or
5 obtained
by the commissioner in an investigation pursuant
6 to
this section shall be confidential by law and
7
privileged, shall not be subject to W.S. 16-4-201 through
8 16-4-205,
shall not be subject to subpoena, and shall not
9 be
subject to discovery or admissible in evidence in any
10 private civil action. The commissioner is
authorized to use
11 the documents, materials or other
information in the
12 furtherance of any regulatory or legal
action brought as a
13 part of the commissioner's duties. Neither
the commissioner
14 nor any person who received documents,
materials or other
15 information while acting under the authority
of the
16 commissioner shall be permitted or required
to testify in
17 any private civil action concerning any
confidential
18 documents, materials or information subject
to this
19 subsection or subsection (f) of this
section. In order to
20 assist in the performance of the
commissioner's duties
21 under this code, the commissioner:
22
23 (i) May share
documents, materials or other
24 information, including the confidential and
privileged
Page 31
1
documents, materials or information subject to this
2
subsection, with other state, federal and international
3
regulatory agencies, with the National Association of
4
Insurance Commissioners, its affiliates or subsidiaries,
5 and
with state, federal and international law enforcement
6
authorities, provided that the recipient agrees to maintain
7 the
confidentiality and privileged status of the document,
8
material or other information;
9
10 (ii) May receive
documents, materials or
11 information, including otherwise
confidential and
12 privileged documents, materials or
information, from the
13 National Association of Insurance
Commissioners, its
14 affiliates or subsidiaries and from
regulatory and law
15 enforcement officials of other foreign or
domestic
16 jurisdictions, and shall maintain as
confidential or
17 privileged any document, material or
information received
18 with notice or the understanding that it is
confidential or
19 privileged under the laws of the
jurisdiction that is the
20 source of the document, material or
information; and
21
22 (iii) May enter
into agreements governing
23 sharing and use of information consistent
with this
24 subsection.
Page 32
1
2 (f) No waiver
of any applicable privilege or claim of
3
confidentiality in the documents, materials or information
4 shall
occur as a result of disclosure to the commissioner
5
under this section or as a result of sharing as authorized
6 in
subsection (e) of this section. Nothing in this chapter
7
shall prohibit the commissioner from releasing final,
8
adjudicated actions including termination causes to a
9
database or other clearinghouse service maintained by the
10 National Association of Insurance
Commissioners, its
11 affiliates or subsidiaries.
12
13 (g) An insurer,
the authorized representative of the
14 insurer, or producer that fails to report as
required under
15 the provisions of this section or that is
found to have
16 reported with actual malice by a court of
competent
17 jurisdiction may, after notice and
opportunity for hearing,
18 have its license or certificate of authority
suspended or
19 revoked and may be fined in accordance with
W.S. 26-1-107.
20
21 26-9-215. Reciprocity.
22
23 (a) The
commissioner shall waive any requirements for
24 a nonresident license applicant with a valid
license from
Page 33
1 his
home state, except the requirements imposed by W.S.
2 26-9-208,
if the applicant's home state awards nonresident
3
licenses to residents of this state on the same basis.
4
5 (b) In order to
carry out the provisions of
6
subsection (a) of this section, the commissioner may
7
negotiate and enter into reciprocal arrangements with the
8
insurance supervisory official of any other state or
9
province.
10
11 26-9-216. Reporting of actions.
12
13 (a) A resident
or nonresident insurance producer
14 shall report to the commissioner any
administrative action
15 taken against the producer in another
jurisdiction or by
16 another governmental agency in this state
within thirty
17 (30) days of the final disposition of the
matter. This
18 report shall include a copy of the order,
consent to order
19 or other relevant legal documents.
20
21 (b) Within
thirty (30) days of the initial pretrial
22 hearing date, a resident or nonresident
insurance producer
23 shall report to the commissioner any
criminal prosecution
24 of the producer taken in any jurisdiction.
The report shall
Page 34
1
include a copy of the initial complaint filed, the order
2
resulting from the hearing and any other relevant legal
3
documents.
4
5 26-9-217. Regulations.
6
7 The
commissioner may, in accordance with W.S. 26-2-110
8
promulgate reasonable regulations as are necessary or
9
proper to carry out the purposes of this chapter.
10
11 26-9-218. Service representatives.
12
13 (a) No
individual in this state shall act as or hold
14 himself out to be a service representative
as defined in
15 W.S. 26-1-102(a)(xxv) unless then licensed
as such under
16 this section.
17
18 (b) An
application for a license to act as a service
19 representative shall be made to the
commissioner on forms
20 prescribed by the commissioner. No examination is
21 required.
The commissioner may conduct investigations
22 concerning the applicant's qualifications,
business
23 affiliations and any other matter he deems
necessary to
Page 35
1
determine compliance with this chapter or for the public's
2
protection.
3
4 (c) The
commissioner shall collect the appropriate
5
application and license fees as provided in W.S. 26-4-101.
6
7 (d) The
commissioner shall issue a service
8
representative license to qualified individuals meeting the
9
requirements of this section and this code. The license is
10 valid for no more than twelve (12) months
and may be
11 renewed annually in the same manner as an
insurance
12 producer's license.
13
14 (e) All
provisions of this chapter apply to licensees
15 under this section to the extent they are
not in conflict
16 with this section.
17
18 Section
2. W.S.
26-1-102(a)(ii), (xx) and by creating
19 a new paragraph (xxxv), 26-2-117(a)(i),
26-4-101(a)(xiv),
20 26-10-104(a)(intro), (i) and (iii),
26-11-106(c),
21 26-11-112(a)(i), (iii) and (d), 26-11-113(a)(i)(B)
and (C),
22 26-11-114, 26-11-116(a)(intro) and
(b), 26-13-112(a) and
23 (d)(i), 26-37-120(a)(ix), 26-45-104(c)(ii)(D),
Page 36
1 26-46-103(a)(iii)(C)(intro)
and 31-14-129are amended to
2
read:
3
4 26-1-102. Definitions.
5
6 (a) As used in this act:
7
8 (ii) "Agent", except as otherwise provided in
W.S. 26-9-103, means any individual, firm or corporation
10 appointed by an
insurer to solicit applications for
11 insurance or annuities or to negotiate
insurance or
12 annuities on its behalf;
13
14 (xx) Except as used in chapter 31 of
this code,
15 "person" means an individual,
insurer, company,
16 association, organization, Lloyd's insurer,
society,
17 reciprocal insurer or interinsurance
exchange, partnership,
18 syndicate, business trust, corporation,
agent, general
19 agent, broker, solicitor, service
representative, adjuster
20 and any legal entity;
21
22 (xxxv) "Insurance producer" means a person
23 required
to be licensed under the laws of this state to
Page 37
1 sell, solicit or negotiate insurance, including, but not
2 limited to, agents and brokers.
3
4 26-2-117. Examination of other than insurers.
5
6 (a) For the purpose of ascertaining
compliance with
7
law, or relationships and transactions between any person
8 and
any insurer or proposed insurer, the commissioner, as
9
often as he deems advisable, may examine the accounts,
10 records, documents and transactions
pertaining to or
11 affecting insurance affairs or proposed
insurance affairs
12 of any person:
13
14 (i) Who is or holds himself out to be
an
15 insurance agent, solicitor, broker, general
agent, adjuster
16 or insurer representative;
17
18 26-4-101. Fee schedule.
19
20 (a) The
commissioner shall collect in advance or
21 contemporaneously fees, licenses and
miscellaneous charges
22 as specified in this subsection. Collection
may include the
23 acceptance of electronic funds transfer:
24
Page 38
1 (xiv) Limited license pursuant to W.S.
2 26-9-110(b) 26-9-209(c):
3
4 Application for
original license and issuance of
5
license, if issued $10.00
6 Annual continuation of license $10.00
7
8 26-10-104. Powers and authority of board;
9 examinations;
records.
10
11 (a) Subject
to the applicable provisions of this
12 chapter, 9 of this code, the board may:
13
14 (i) Formulate general policy
concerning the
15 scope, contents, procedure and conduct of
examinations to
16 be given by the commissioner for licenses as
agent,and
17 broker; and solicitor;
18
19 (iii) Determine the scope and contents
of
20 material furnished examination applicants by
the
21 commissioner under W.S. 26-9-111(b) 26-9-205 for the
22 purpose of preparing for an examination;
23
24 26-11-106. Open lines for export.
Page 39
1
2 (c) The broker, or a licensed Wyoming agent of the
3
authorized insurer or a broker, may also place with
4 authorized
insurers any insurance coverage made eligible
5 for
export generally under subsection (a) of this section
6 and
without regard to rate or form filings which may
7
otherwise be applicable to the authorized insurer. As to
8
coverages placed in an authorized insurer, the premium tax
9
thereon shall be reported and paid by the insurer as
10 required generally under W.S. 26-4-103.
11
12
26-11-112. Surplus line
broker's license; authority
13 for issuance; application; fee; applicable law.
14
15 (a) Any
person may be licensed as a surplus line
16 broker if:
17
18 (i) He is licensed in this state as a resident
general
lines property and casualty agent;
20
21 (iii) He maintains an office at a
designated
22 location in this state known to and
accessible by the
23 commissioner.
24
Page 40
1 (d) The license and licensee are
subject to the
applicable provisions of chapter
9 of this codeas
provided
3 in W.S. 26-9-201.
4
5 26-11-113. Surplus line broker's license; suspension
6 or revocation;
grounds; procedure.
7
8 (a) The commissioner may suspend or
revoke any
9
surplus line broker's license:
10
11 (i) If the broker:
12
13 (B) Fails
to maintain an office in this
state
accessible to the commissioner;
15
16 (C) Fails
to keep the records, or to allow
17 the commissioner to examine his records, as
required by
18 this law; or
19
20 26-11-114. Surplus line broker's bond.
21
22 Prior to issuance of a license as a surplus
line broker,
23 the applicant shall file with the
commissioner and
24 thereafter for as long as the license
remains in effect
Page 41
1
shall keep in force a bond in favor of the state of Wyoming
2 in
the penal sum of one thousand
dollars ($1,000.00) ten
3 thousand dollars ($10,000.00), with an authorized corporate
4
surety the commissioner approves, conditioned that he will
5
conduct business under the license in accordance with this
6
chapter and that he will promptly remit the taxes provided
7 by
W.S. 26-11-118. The aggregate liability of the surety
8 for
any claims on the bond shall not exceed the penal sum
9 of
the bond. The bond shall not be terminated unless not
10 less than thirty (30) days prior written
notice thereof is
11 given to the licensee and filed with the
commissioner.
12
13 26-11-116. Records of broker; contents; examination.
14
15 (a) Each
broker shall keep in his office in this
state
a full and true record of each surplus
line coverage
17 he procures, including a copy of each daily
report, if any,
18 a copy of each certificate of insurance he
issues and any
19 of the following applicable items:
20
21 (b) The
record shall not be removed from this state
and
is open to examination by the commissioner
at all times
23 within five (5) years after issuance of the
coverage to
24 which it relates.
Page 42
1
2 26-13-112. Unfair discrimination, rebates and favors
3 prohibited for
property, casualty and surety insurers.
4
5 (a) No property, casualty or surety
insurer or any
6
employee or representative thereof, and no broker,or agent
7 or solicitor shall pay, allow
or give, or offer to pay,
8
allow or give, in any manner, as an inducement to
9
insurance, or after insurance has been effected, any
10 valuable consideration or inducement of any
kind not
11 specified or provided for in the policy,
except to the
12 extent provided for in an applicable filing
with the
13 commissioner as provided by law.
14
15 (d) Nothing in this section prohibits:
16
17 (i) The payment of commissions or
other
18 compensation to licensed agents,or brokers; or solicitors;
or
20
21
26-37-120. Mechanical
breakdown insurance
22 organizations; grounds for suspension, revocation or
23 refusal to renew dealer's license generally.
24
Page 43
1 (a) The commissioner may suspend,
revoke or refuse to
2
renew any mechanical breakdown insurance dealer's license
3
issued under this chapter for any cause specified by this
4
chapter including the following:
5
6 (ix) Any cause of license suspension
or
7
revocation provided under W.S. 26-9-136 through
26-9-138
9
10 26-45-104. Minimum standards.
11
12 (c) The
controlled insurer shall not accept business
13 from a controlling broker and a controlling
broker shall
14 not place business with a controlled insurer
except
15 pursuant to a written contract, which has
been approved by
16 the board of directors of the insurer. The
contract shall
17 be subject to the following requirements:
18
19 (ii) The
contract shall specify the
20 responsibilities of each party and contain
the following
21 minimum provisions:
22
23 (D) All
funds collected for the controlled
24 insurer's account shall be held by the
controlling broker
Page 44
1 in
a fiduciary capacity in accordance with W.S. 26-9-130
3
accounts in banks that are organized or licensed under the
4
laws of the United States or any state and are insured by
5 an
instrumentality of the United States government and have
6
been determined by either the insurance commissioner or the
7
securities valuation office of the National Association of
8
Insurance Commissioners to meet such standards of financial
9
condition and standing as are considered necessary and
10 appropriate. Funds of a controlling broker
not required to
11 be licensed in this state shall be
maintained in compliance
12 with the requirements of the controlling
broker's
13 domiciliary jurisdiction;
14
15 26-46-103. Required contract provisions.
16
17 (a) No
person acting in the capacity of a managing
18 general agent shall place business with an
insurer unless
19 there is in force a written contract between
the parties
20 which:
21
22 (iii) Contains the following minimum provisions:
23
Page 45
1 (C) All funds collected for the
account of
2 an
insurer shall be held by the managing general agent in a
3
fiduciary capacity in accordance with W.S. 26-9-130
5
6 31-14-129. Further grounds for suspension or
7 revocation of agent's
license.
8
9 A
club agent's license shall be suspended or revoked by the
10 commissioner for the same applicable grounds
and in the
11 manner provided for agents of insurers in
W.S. 26-9-136
through
26-9-138 26-9-211.
13
14 Section 3. W.S. 26-9-135 as
26-9-219, 26-9-139 as
15 26-9-220, 26-9-140 as 26-9-221, 26-9-142
as 26-9-222,
16 26-9-124 through 26-9-126 as 26-9-223
through 26-9-225,
17 26-9-104 as 26-9-226, 26-9-116 as 26-9-227,
26-9-129 as
18 26-9-228, 26-9-130 as 26-9-229, 26-9-134
as 26-9-230 and
19 26-9-141 as 26-9-231 are amended and
renumbered to read:
20
21 26-9-135 26-9-219. Adjuster's
license; exception;
22 notification.
23
Page 46
1 (a) Application for license as an
adjuster shall be
2
made to the commissioner on forms he prescribes and
3
furnishes. The commissioner shall issue the license as to
4
qualified individuals upon payment of the license
5
application fee stated in W.S. 26-4-101.
6
7 (b) To be licensed as an adjuster the
applicant
8
shall:
9
10 (i) Be an adult;
11
12 (ii) Be a resident of Wyoming or of
another
13 state which permits residents of Wyoming to
act as
14 adjusters in that state;
15
16 (iii) Be a full-time salaried employee
of a
17 licensed adjuster or a graduate of a
recognized law school,
18 or have had experience or special education
or training in
19 the handling of loss claims under insurance
contracts of
20 sufficient duration and extent to make him
competent to
21 fulfill the responsibilities of an adjuster;
22
23 (iv) Be trustworthy and of good reputation;
24
Page 47
1 (v) Have
and maintain an office accessible to
2 the
public and keep therein the usual and customary records
3 in
paper, electronic or other appropriate format,
4
pertaining to transactions under the license; and
5
6 (vi) Within one (1) year prior to
submitting the
7
application for the license, have taken and passed a
8
written examination as required by
this chapter in a form
9 prescribed by the commissioner. The commissioner may waive
10 written
examination of a nonresident applicant if the
11 applicant
is licensed as an adjuster in his home state, is
12 in
good standing in his home state and his home state
13 grants
this state's resident adjusters a similar privilege.
14
15 (c) A firm or
corporation, whether or not organized
under
the laws of this state, may be licensed as an
adjuster,
if each individual who is to exercise the license
powers
is named in the license or registered with the
commissioner
under the license and is qualified for an
individual
license as adjuster. An additional full license
fee
shall be paid for each individual, exceeding one (1),
named
in the license or registered to exercise its powers.
23
Page 48
1 (d)(c) A Wyoming adjuster's license is
required of
2 any adjuster who by physical appearance or through
3
electronic or other means, acts in this state on behalf of
4 an
insurer for the purpose of investigating or making
5
adjustment of a particular loss under an insurance policy
6
unless the loss is of an unusual, uncommon or unique nature
7
requiring special expertise or knowledge not readily
8
available among adjusters licensed in this state, or for
9 the
adjustment of a series of losses resulting from a
10 catastrophe common to those losses. Any insurer on whose
11 behalf an adjuster who is not licensed in
Wyoming
12 investigates or adjusts a loss in this
state, whether by
13 physical appearance or through electronic or
other means,
14 shall notify the commissioner of such action
prior to the
15 unlicensed adjuster acting in this state.
16
17 26-9-139 26-9-220. Insurance consultants.
18
19 (a) No
person shall be held out to the public as an
20 insurance consultant for hire unless a
license as such has
21 been issued in accordance with this section.
22
23 (b) An
application for a license to act as an
24 insurance consultant for hire shall be made
to the
Page 49
1
commissioner on forms he prescribes. The commissioner shall
2
require that the applicant, within one (1) year prior to
3
submitting the application for the license, have taken and
4
passed a written examination in a form prescribed
by the
5 commissioner. The commissioner may
waive written
6 examination of a nonresident applicant
if the applicant is
7 licensed as a consultant in his home
state, is in good
8 standing in his home state and his
home state grants this
9 state's resident consultants a similar
privilege. The
10 commissioner may
conduct investigations concerning the
11 applicant's
qualifications, residence, business
12 affiliations and
any other matter he deems necessary to
13 determine compliance
with this chapter or for the public's
14 protection.
15
16 (c) The
commissioner shall collect a nonreturnable
17 application fee, a fee for the license, if
issued, and an
18 annual renewal fee, as provided in W.S. 26-4-101.
No broker
may
be issued a license under this section, and no license
20 is valid for longer than twelve (12) months.
A license may
21 be renewed annually in the same manner as an
agent's
23
Page 50
1 (d) All provisions of this chapter
apply to licensees
2
under this section to the extent that they are not in
3
conflict with this section.
4
5 (e) This section does not apply to
licensed
6
attorneys.
7
8 (f) An agent insurance producer
who is also licensed
9 as
a consultant under this section shall not act in the
10 dual capacity of an agent insurance producer
and a
11 consultant in the same insurance
transaction.
12
13 26-9-140 26-9-221. Limited license.
14
15 (a) The
commissioner may issue to an applicant,
qualified
under W.S. 26-9-106, a limited agent's license
17 governing credit life insurance or covering
credit
18 disability insurance.
19
20 (b) Nothing
in this section shall be interpreted as
21 requiring:
22
Page 51
1 (i) An
agent insurance producer
licensed to
2
transact life insurance be licensed as a limited life agent
4
5 (ii) An agent insurance producer
licensed to
6 transact
disability insurance be licensed as a limited
7
disability agent producer to transact credit disability
8
insurance.
9
10 (c) The
commissioner shall collect a nonrefundable
11 application fee, a fee for the license, if
issued and an
12 annual renewal fee as provided in W.S. 26-4-101. A limited
13 license is subject to the same license and
appointment
14 renewal procedures as an agent's insurance
producer's
15 license. under W.S. 26-9-117 and 26-9-118.
16
17 (d) To
the extent that they are not in conflict with
18 this section, all provisions of the Wyoming
Insurance Code
19 apply to licensees under this section.
20
21 26-9-142 26-9-222. Insurance
marketers; requirements;
22 penalties; rulemaking authority.
23
Page 52
1 (a) An individual located in this
state but not
2
licensed as an insurance agent, broker or
solicitor
4 may
solicit or take applications for insurance on risks not
5
resident, located or to be performed in Wyoming if:
6
7 (i) The
individual is named in and listed under
8 the
resident agent's insurance producer's license of a firm
or corporation business entity as an
insurance marketer and
10 is employed by the firm or corporation business entity;
11
12 (ii) The firm or corporation business entity
who
13 directly or indirectly employs the insurance
marketer is
14 licensed as a resident agent insurance producer
pursuant to
15 this chapter 9 of the
Insurance Code and pays a licensing
16 fee for each insurance marketer in an amount
determined by
17 the insurance commissioner of not to exceed
twenty dollars
18 ($20.00);
19
20 (iii) The insurance marketer meets the residency
requirements
of W.S. 26-9-106 is a Wyoming resident;
22
Page 53
1 (iv) The insurance marketer is not
compensated
2
based upon sales of insurance products or on a commission
3
basis;
4
5 (v) Any
persons who are responsible for the
6
direct supervision and verification of the insurance
7
transactions of the insurance marketers are licensed as
8
resident Wyoming agents insurance producers pursuant to
9 this chapter; 9 of the Insurance
Code;
10
11 (vi) As required by the insurance
commissioner,
12 it can be demonstrated to the Wyoming
insurance department
13 that the insurance product being solicited
has been
14 approved by the insurance supervisory
official of the state
15 whose residents are being contacted by the
insurance
16 marketer, and that the insurance supervisory
official of
17 that state has been notified as to the
method of marketing
18 that product; and
19
20 (vii) The method and procedures
utilized to
21 supervise and verify the insurance
transactions of the
22 insurance marketers are filed with and
approved by the
23 Wyoming insurance department prior to
solicitation by the
24 insurance marketers.
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1
2 (b) Any violations of the Wyoming
Insurance Code by
3 an
insurance marketer constitutes a violation of the code
4 by
the persons who employ, supervise or verify the
5
transactions of the insurance marketers and subjects those
6
persons to civil or criminal penalties or the suspension or
7
revocation of any insurance licenses issued by the Wyoming
8 insurance
department.
9
10 (c) The
commissioner shall adopt reasonable rules and
11 regulations necessary to carry out the
provisions of this
12 section in accordance with W.S. 26-2-110.
13
14 26-9-124 26-9-223. Insurance
producer acting as
15 broker; bond.
16
17 (a) Any
applicant for a broker's license insurance
18 producer
acting in the capacity of a broker shall
file with
19 the application department and shall thereafter maintain in
20 force while
licensed, a bond in favor of the people of the
21 state of Wyoming
executed by an authorized surety insurer.
22 The bond may be
continuous in form and total aggregate
23 liability on the
bond is limited to payment of two thousand
five
hundred dollars ($2,500.00) ten thousand dollars
Page 55
1 ($10,000.00). The bond
shall be conditioned upon full
2
accounting and payment to the person entitled thereto, of
3
funds coming into the broker's insurance producer's
4
possession through insurance transactions under the
5 license.
6
7 (b) The bond shall remain in force
until released by
8 the
commissioner or until cancelled by the surety. Without
9
prejudice to any liability previously incurred thereunder,
10 the surety may cancel the bond upon thirty
(30) days
11 advance written notice to both the broker insurance
12 producer and the commissioner.
13
14 26-9-125 26-9-224. Scope of broker's authority;
15 broker's commissions.
16
17 (a) Any insurance producer acting in the capacity of
18 a broker as such is not an agent or other representative of
19 an insurer and does not have power by his
own acts to
20 obligate the insurer upon any risk or by any
insurance
21 transaction.
22
23 (b) An
insurer or agent insurance producer
has the
24 right to pay to an insurance producer acting in the
Page 56
1 capacity of a broker and licensed under this
chapter the
2
customary commissions upon insurance placed through the
3 producer acting as a broker.
4
5 26-9-126 26-9-225. Broker and agent
license
6 combinations.
7
8 A licensed resident agent may be licensed also as a broker
and be a broker as to insurers for
which he is not then
licensed
as agent. A licensed broker may be licensed as and
be
an agent as to insurers appointing him as agent. The
12 sole relationship
between an insurance producer acting in
13 the
capacity of a broker and an insurer as to
which he is
14 then licensed appointed as an agent, as to transactions
15 arising during the
existence of that agency appointment, is
16 that of insurer
and agent and not that of insurer and
17 broker.
18
19 26-9-104 26-9-226. "Controlled business"
20 restrictions.
21
22 (a) The
commissioner shall not grant, renew, continue
23 or permit to exist any license as agent, broker or
solicitor
an insurance producer if he finds that the
Page 57
1
license has been or is being used principally for the
2
purpose of writing "controlled business" as follows:
3
4 (i) Insurance
on his own interests or those of
5 his
family or of his employer; or
6
7 (ii) Insurance or annuity contracts
covering
8
himself or members of his family, or the officers,
9
directors, stockholders, partners or employees of a
10 partnership, association or corporation of
which he or a
11 member of his family is an officer,
director, stockholder,
12 partner, associate or employee.
13
14 (b) A
license is deemed to have been or intended to
15 be used principally for the purpose of
writing controlled
16 business if the commissioner finds that
during any twelve
17 (12) month period the aggregate commissions
earned from
18 controlled business as specified in this
section have
19 exceeded or probably will exceed the
aggregate commissions
20 to be earned on other business written by an
applicant or
21 licensee during the same period.
22
23 (c) If
commissions on controlled business transacted
24 by an agent, broker or
solicitor insurance producer
payable
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1 in
one (1) calendar year exceed the commissions on other
2
insurance business transacted by the licensee and payable
3 in
the same year, the receipt of the excess commissions is
4 an
unlawful rebate.
5
6 (d) This section does not apply to:
7
8 (i) Insurance of the interest of:
9
10 (A) A
motor vehicle sales or financing
11 agency in a motor vehicle it sells or
finances;
12
13 (B) A
real property mortgagee in the
14 mortgaged property.
15
16 (ii) Credit life insurance and credit
disability
17 insurance.
18
19 26-9-116 26-9-227. Authority under
license to
20 transact business; nontransferability.
21
22 (a) Any licensee under this chapter
may transact
23 business as authorized by the license
throughout the state
24 of Wyoming. No city, county or other
political subdivision
Page 59
1 of
this state shall require any other or further permit,
2
registration or authority for transactions by the licensee
3
therein.
4
5 (b) No license or registration under a firm or
corporation license, as provided by
W.S. 26-9-107, is
assignable or transferable to
another.
8
9 26-9-129 26-9-228. Place of
business of licensees;
10 display of licenses; records.
11
12 (a) Each
resident agent and broker insurance producer
13 shall have and maintain in this state a
place of business
14 accessible to the public and in which the
licensee
15 principally conducts transactions under his
license. The
16 address of the place shall appear upon the
license, and the
17 licensee shall promptly notify the
commissioner in writing
18 of any change thereof as provided by W.S. 26-9-207(f).
19 Nothing in this section prohibits
maintenance of a place of
20 business in the licensee's residence in this
state.
21
22 (b) The
licenses of the licensee, and those of
solicitors
he employs, an insurance producer under
this
Page 60
1 chapter shall be
conspicuously displayed in the place of
2 business in a part thereof customarily open to the public.
3
4 (c) The agent or broker insurance producer
shall keep
5 at
his place of business a complete record of transactions
6
under his license. and those of his solicitors. The record
7 shall
show, as to each insurance policy or contract placed
8 by
or through the licensee, the names of the insurer and
9
insured, the number, expiration date of, premium payable as
10 to the policy or contract and any other
information the
11 commissioner reasonably requires. The agent or broker
12 insurance producer shall keep the record available for
13 inspection for a period of at least three
(3) years after
14 completion of the transactions.
15
16 (d) The
requirements of subsection (c) of this
17 section are satisfied if the records
specified in this
18 section may be obtained immediately from a
central storage
19 place, or elsewhere by on line computer
terminals located
20 at the licensee's place of business.
21
22 26-9-130 26-9-229. Reporting and
accounting for
23 premiums.
24
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1 (a) Any premiums or return premiums
received by an
2 agent, broker or solicitor insurance producer
are trust
3
funds received in a fiduciary capacity, and the agent,
broker or solicitor producer, in the regular
course of
5
business, shall account for and pay the funds to the
6
insured, insurer or agent insurance producer entitled
7
thereto.
8
9 (b) The licensee shall establish a
separate trust
10 account for premiums specified in subsection
(a) of this
11 section and shall not use the account for or
commingle it
12 with his own funds. He shall maintain an
accurate record
13 and itemization of the funds deposited in
the account.
14
15 (c) Any
agent, broker or solicitor insurance producer
16 who diverts or appropriates any funds, to
which he is not
17 lawfully entitled, to his own use is guilty
of embezzlement
18 and upon conviction shall be punished as
provided by law.
19
20 26-9-134 26-9-230. Service of
process on nonresident
21 producers.
22
23 (a) Application
for and acceptance of a license as a
24 nonresident agent under W.S. 26-9-133 insurance producer
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1
constitutes irrevocable appointment of the commissioner as
2 the
attorney of the licensee for the acceptance of service
3 of
process issued in this state in any action or proceeding
4
against the licensee arising out of the licensing or any
5
transactions under the license.
6
7 (b) Duplicate copies of process shall
be served upon
8 the
commissioner or other person in apparent charge of his
9
office during his absence, accompanied by payment to the
10 commissioner a process fee as provided in
W.S. 26-4-101.
11 Upon receiving the service the commissioner
shall promptly
12 forward a copy thereof by registered or
certified mail,
13 with return receipt requested, to the
nonresident licensee
14 at his business address last of record with
the
15 commissioner.
16
17 (c) Process
served upon the commissioner and copy
18 thereof forwarded as provided in this
section for all
19 purposes constitutes personal service
thereof upon the
20 licensee.
21
22 26-9-141 26-9-231. Continuing
education.
23
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1 (a) Resident agents,
brokers, solicitors insurance
2 producers, title agents licensed pursuant to W.S.
3 26-23-318,
service representatives, adjusters, nonresident
licensees not exempted under
subsection (f) of this
section, and other resident
persons required to be licensed
6 under this chapter shall annually complete ten (10)
7 classroom hours of continuing education. This requirement
8 does not apply to nonresident
licensees, those persons who
9 hold licenses for any kinds of insurance for which an
10 examination is not
required, nor shall it apply to any such
11 limited or
restricted licenses as the commissioner may
12 exempt.
13
14 (b) Any
person teaching any approved continuing
15 education course or lecturing at any approved
seminar shall
16 qualify for the same number of classroom
hours granted to
17 the person taking the course or seminar.
18
19 (c) The
commissioner may promulgate rules and
20 regulations necessary to carry out the
purposes of this
21 section.
22
23 (d) Persons
licensed between January 1 and June 30 of
24 any year shall complete ten (10) hours of
continuing
Page 64
1
education for that year. Persons licensed between July 1
2 and
December 31 of any year shall complete five (5) hours
3 of
continuing education for that year.
4
5 (e) Up to five (5) classroom hours
may be carried
6
forward to the next year. For good cause shown, the
7
commissioner may grant an extension of up to one (1) year
8 to
complete the required continuing education.
9
10 (f) Every
person subject to this section shall
11 furnish, in a form satisfactory to the
commissioner,
12 written certification as to the courses,
programs or
13 seminars of instruction taken by that
person. The
14 certification shall be executed by or on
behalf of the
15 sponsoring organization within a sixty (60)
day period
16 following the course, program or seminar. A nonresident
licensee
required to complete continuing education in his
state
of domicile is exempt from the provisions of this
section. A nonresident licensee domiciled in a state
without
a continuing education requirement is subject to
the
requirements of this section.
22
23 (g) The
commissioner is authorized to assess every
24 person subject to this section an annual fee
of fifteen
Page 65
1
dollars ($15.00) in addition to the annual license fee, for
2 the
support of continuing education. The annual fee for
3
support of continuing education shall be deposited in the
4 general
fund.
5
6 (h) Any person failing to meet the
requirements of
7
this section and who has not been granted an extension of
8
time within which to comply, or who has submitted to the
9
commissioner a false or fraudulent certificate of
10 compliance shall, after a notice and opportunity for
11 hearing, be
subject to the suspension of all licenses
12 issued until the person demonstrates to the
satisfaction of
13 the commissioner that he has complied with
all requirements
14 of this section.
15
16 Section 4. W.S. 26-9-138 is renumbered as 26-9-232.
17
18 Section 5. W.S. 26-1-102(a)(xxvi),
26-4-101(a)(vii),
19 26-9-101 through 26-9-103, 26-9-105
through 26-9-115,
20 26-9-117 through 26-9-123, 26-9-127,
26-9-128, 26-9-131
21 through 26-9-133, 26-9-136, 26-9-137
and 26-11-113(a)(i)(D)
22 are repealed.
23
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1 Section 6. This act is effective January 1, 2002.
2
3 (END)
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