KRS 304.9-090: Exceptions to licensure requirements.

(1) Nothing in this subtitle shall be construed to require an insurer to obtain a license as

an insurance producer. As used in this section, the term "insurer" does not include

an insurer's officers, directors, employees, subsidiaries, or affiliates.

(2) A license as an insurance producer shall not be required of the following:

(a) An officer, director, or employee of an insurer or of an insurance producer,

provided that the officer, director, or employee does not receive any

commission or other valuable consid eration on policies written or sold to

insure risks residing, located, or to be performed in this state, and:

1. The officer, director, or employee's activities are devoted to functions

that are executive, administrative, managerial, clerical, or a combina tion

of these, and are only indirectly related to the sale, solicitation, or

negotiation of insurance; or

2. The officer, director, or employee's function relates to underwriting, loss

control, inspection, or the processing, adjusting, investigating, or settling

of a claim on a contract of insurance; or

3. The officer, director, or employee is acting in the capacity of a special

agent or agency supervisor assisting insurance producers where the

officer's, director's, or employee's activities are limited to providing

technical advice and assistance to licensed insurance producers and do

not include the sale, solicitation, or negotiation of insurance;

(b) The individual secures and furnishes information for the purpose of group life

insurance, group property a nd casualty insurance, group annuities, group or

blanket accident and health insurance, or for the purpose of enrolling

individuals under plans, issuing certificates under plans, or otherwise assisting

in administering plans; or performs administrative ser vices related to a mass

marketed property and casualty insurance, where no commission is paid to the

individual for the service;

(c) An employer or association or its officers, directors, employees, or the trustees

of an employee trust plan, to the extent that the employers, officers,

employees, directors, or trustees are engaged in the administration or

operation of a program of employee benefits for the employer's or

association's own employees or the employees of its subsidiaries or affiliates,

which program involves the use of insurance issued by an insurer, as long as

the employers, associations, officers, directors, employees, or trustees are not

in any manner compensated, directly or indirectly, by the insurer issuing the

contracts;

(d) Employees of i nsurers or organizations employed by insurers who are

engaging in the inspection, rating, or classification of risks, or in the

supervision of the training of insurance producers who are not individually

engaged in the sale, solicitation, or negotiation of insurance;

(e) An individual or business entity whose activities in this state are limited to

advertising without the intent to solicit insurance in this state through

communications in printed publications or other forms of electronic mass

media whose distribution is not limited to residents of the state, provided that

the individual or business entity does not sell, solicit, or negotiate insurance

that would insure risks residing, located, or to be performed in this state;

(f) An individual or business e ntity who is not a resident of this state who sells,

solicits, or negotiates a contract of insurance for commercial property and

casualty risks to an insured with risks located in more than one (1) state

insured under that contract, provided that the indiv idual or business entity is

otherwise licensed as an insurance producer to sell, solicit, or negotiate that

insurance in the state where the insured maintains its principal place of

business and the contract of insurance insures risks located in that state; or

(g) A salaried full -time employee who counsels or advises his or her employer

relative to the insurance interest of the employer or of the subsidiaries or

business affiliates of the employer, provided that the employee does not sell,

solicit, or negotiate insurance or receive a commission.