§ 4802. Consultants
(a) An individual shall not engage in the business of an insurance consultant until being
issued a consultant license by the Commissioner; provided, however, that a consultant
license shall not be required of the following:
(1) attorneys licensed to practice law in this State acting in their professional capacity;
(2) a duly licensed insurance producer or surplus lines insurance broker;
(3) a trust officer of a bank acting in the normal course of his or her employment; or
(4) an actuary or a certified public accountant who provides information, recommendations,
advice, or services in his or her professional capacity.
(b) An application for a license to act as an insurance consultant shall be made to the
Commissioner on forms prescribed by the Commissioner. Within a reasonable time after
receipt of a properly completed application form, the Commissioner shall hold a written
examination for the applicant and may conduct investigations and propound interrogatories
concerning the applicant’s qualifications, residence, business affiliations, and any
other matter that he or she deems necessary or advisable to determine compliance with
this chapter or for the protection of the public.
(c) In advance of rendering any service as a consultant, a written agreement on a form
approved by the Commissioner shall be prepared by the consultant and shall be signed
by both the consultant and the client. The agreement shall outline the nature of the
work to be performed by the consultant and shall state his or her fee for the work.
The consultant shall retain a copy of the agreement for not less than two years after
completion of the services. The copy shall be available to the Commissioner.
(d) No person may concurrently hold a consultant’s license and an insurance producer’s,
surplus lines insurance broker’s, or limited lines producer’s license in any line.
(e) No licensed consultant may employ, be employed by, or be in partnership with nor receive
any remuneration whatsoever, from any licensed insurance producer, surplus lines insurance
broker, limited lines producer, or insurer arising out of his or her activities as
a consultant.
(f) The license shall be valid for not longer than 24 months and may be renewed biennially
and extended in the same manner as an insurance producer’s license.
(g) All requirements and standards relating to the denial, revocation, or suspension of
an insurance producer’s license, including penalties, shall apply to the denial, revocation,
and suspension of an insurance consultant’s license as nearly as practicable.
(h) A consultant is obligated under his or her license to serve with objectivity and complete
loyalty the interests of his or her client alone; and to render his or her client
such information, counsel, and service as within the knowledge, understanding, and
opinion, in good faith of the licensee, best serves the client’s insurance needs and
interests.
(i) Prior to the issuance of a license to an insurance consultant, the applicant shall
file with the Commissioner, and thereafter for as long as the license remains in effect,
shall keep in force a bond in the penal sum of not less than $5,000.00 with an authorized
corporate surety approved by the Commissioner. The aggregate liability of the surety
for any and all claims on any bond shall in no event exceed the penal sum thereof.
No bond shall be terminated unless at least 60 days’ prior written notice thereof
is given by the surety to the licensee and the Commissioner. Upon termination of the
license for which the bond was in effect, the Commissioner shall notify the surety
within 10 working days. All surety protection under this subsection is to inure to
the benefit of the aggrieved parties. (Amended 1973, No. 217 (Adj. Sess.), § 12; 1975, No. 78, § 2; 2001, No. 97 (Adj. Sess.), § 10; 2021, No. 105 (Adj. Sess.), § 228, eff. July 1, 2022.)