A company's human-resources coordinator enrolls employees under the firm's group insurance policy: explaining available coverages, calculating the insurance charge, helping complete enrollment applications, and delivering certificates. The coordinator receives a fixed salary with no commission, and the pay does not vary with the number enrolled or the premium generated. Does the coordinator need an insurance producer license?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Va. Code § 38.2-1822(G) excuses from producer licensing a person whose employment responsibilities include enrolling individuals under a group insurance policy, provided the person receives no commission or other valuable consideration for the enrollments and the compensation is in no manner contingent on the number of individuals enrolled or the premium generated. The statute defines enrolling individuals to include informing people of available coverages, calculating the insurance charge, assisting with applications, preparing and delivering certificates, and answering questions. The two pay-structure conditions are what keep the coordinator outside the licensing net the Commission and the Virginia Bureau of Insurance administer.
Why the other options are wrong
- A) Explaining coverages is expressly part of the statutory definition of enrolling individuals, which the exemption covers.
- B) Preparing and delivering certificates of insurance is itself a listed enrollment activity within the exemption.
- D) Group coverage remains regulated; the exemption is conditional on the pay structure, not a blanket carve-out.
Memory hook
Group enrollment is license-free only when pay is flat and commission-free.