Which individuals can be excluded from producer licensing and examination requirements?

• A. Insurance company officers, directors, or employees who do not transact insurance and who do not receive commissions for their services
• B. All employees of an insurance company
• C. Brokers who are not employed by an insurer
• D. Individuals who hold a sales license in another state

Answer: (A)

The key idea is that licensing and exams are for people who actually sell, solicit, or negotiate insurance and/or receive commissions. The group that is exempt includes insurance company officers, directors, or employees who do not transact insurance and do not receive commissions for their services. Since they aren’t acting as producers and aren’t compensated for selling insurance, there’s no need for them to obtain a producer license or take the exam.

Other workers don’t fit this exemption. Not all employees are exempt—those who transact insurance or receive commissions would need to be licensed. Independent brokers not employed by an insurer are producers by definition and must be licensed, not exempt. Holding a license in another state doesn’t automatically waive Wisconsin’s licensing and examination requirements for someone who conducts insurance activities in Wisconsin, though there might be other reciprocity arrangements; it isn’t an exemption on its own.