Which individuals are not required to obtain a producer license or undergo examinations because they do not transact insurance or receive commissions?

• A. Insurance company officers, directors, or employees who do not transact insurance and who do not receive commissions
• B. Independent adjusters
• C. Reinsurance brokers
• D. Board members of an insurer

Answer: (A)

The main idea is that producer licensing is for people who actively sell, solicit, or negotiate insurance and who earn commissions. Those inside an insurer who don’t engage in selling or earning commissions aren’t required to hold a producer license.

The best choice fits this exemption exactly: insurance company officers, directors, or employees who do not transact insurance and who do not receive commissions. They’re part of the insurer but not involved in selling or placing policies, so nothing they do triggers the need for a producer license or for taking producer exams.

Independent adjusters, reinsurance brokers, and board members do not fit that exemption. Independent adjusters handle claims and are typically licensed as adjusters rather than producers. Reinsurance brokers place risks with reinsurers and are treated as producers for licensing purposes. Board members, unless they also hold officer or employee roles involving non-transacting activities, don’t automatically qualify for the exemption designed for those who don’t transact insurance or earn commissions.