§ 8-449. License required; exceptions

   (a) In general. -- Except as otherwise provided in this section, a person must obtain a license issued under Title 10, Subtitle 1 of this article before the person acts as an insurance producer for a fraternal benefit society.

(b) Officers or employees excepted. -- Subsection (a) of this section does not apply to a regular salaried officer or employee of a licensed society who:

   (1) devotes substantially all of the officer's or employee's services to activities other than soliciting insurance contracts; and

   (2) does not receive, for soliciting insurance contracts, a commission or other compensation that is directly dependent on the amount of business obtained.

(c) Part-time solicitation excepted. --

   (1) Subsection (a) of this section does not apply to a fraternal benefit insurance producer or representative of a society that devotes, or intends to devote, less than 50% of the person's time to selling, soliciting and negotiating insurance contracts for the society.

   (2) For the purposes of paragraph (1) of this subsection, a person is presumed to be devoting, or intending to devote, 50% or more of the person's time to selling, soliciting or negotiating insurance contracts for a society if, in the preceding calendar year, the person has sold, solicited and negotiated:

      (i) life insurance contracts that, in the aggregate, exceed $ 200,000 of coverage for all lives insured for the preceding calendar year;

      (ii) a permanent life insurance contract offering more than $ 10,000 of coverage on an individual life;

      (iii) a term life insurance contract offering more than $ 50,000 of coverage on an individual life;

      (iv) any insurance contracts other than life that the society may write that insure the lives of more than 25 individuals; or

      (v) any variable life insurance or variable annuity contract.

HISTORY: An. Code 1957, art. 48A, § 344A, 344B; 1995, ch. 36; 1997, ch. 183, § 1; 2001, ch. 731, § 1.