SUBJECT: LICENSURE WITHOUT EXAMINATION OF GROUP CREDIT PROPERTY INSURANCE AGENTS
DATE: October 24, 2000
Neb.Rev.Stat. §44-4010 (11) requires the Director of Insurance to issue an agent's license without examination if such person meets all other license requirements and such person solicits a kind of insurance that does not require an examination to demonstrate professional competency. Neb.Rev.Stat. §44-3903 (3) specifies that the producer license continuing education requirements found in 44-3901 to 44-3908 do not apply to licensees holding such limited or restricted licenses as the Director may exempt.
Neb.Rev.Stat. §44-201(6) defines credit property insurance as "insurance against loss or damage to personal property used as collateral for securing a loan or to personal property purchased pursuant to a credit transaction, but only insofar as it applies to property sold to or pledged by individual consumers for personal use." An "installment sale" is any transaction, whether or not involving the creation or retention of a security interest, in which a buyer acquires goods or services from a seller pursuant to an agreement which provides for a time-price differential and under which the buyer agrees to pay all or part of the time-sale price in one or more installments.
The Director of Insurance has examined the limited scope of the background needed to secure and furnish information, issue certificates, and otherwise assist in administering group credit property insurance issued in connection with an installment sale transaction. The Director of Insurance has also examined the nature of this coverage. As a result of his examination, the Director of Insurance hereby finds that solicitation of group credit property insurance issued in connection with an installment sale transaction does not require an examination to demonstrate professional competency.
Accordingly, the Director of Insurance will issue an agent license without examination to a person to solicit group installment credit property insurance whose duties are restricted to securing and furnishing information, issuing certificates, and otherwise assisting in administering group credit property insurance issued in connection with an installment sales transaction. The Director of Insurance hereby exempts licensees holding such limited lines agent license from the provisions of Neb.Rev.Stat. §§44-3901 to 44-3908, pursuant to the authority granted to the Director of Insurance by Neb.Rev.Stat. §44-3903. An applicant for such agent license shall meet all other applicable license requirements before a group installment credit property insurance limited lines agent license is issued by the Department of Insurance. A person who has obtained a limited lines agent license to sell group installment credit property insurance may not receive a commission for the services provided under the license. This bulletin is operative on and after November 1, 2000.
L. Tim Wagner
DIRECTOR OF INSURANCE