20-2662. Insurance producer qualifications; reports

A. A person may not sell or offer for sale in this state any variable contracts unless the person is licensed as a life insurance producer by the department and files with the director evidence that the person is licensed by the financial industry regulatory authority as a principal or a registered representative and that the person is authorized to solicit or sell variable contracts by an insurer admitted to transact variable contract business in this state.

B. A person may not sell or offer for sale in this state any variable group contracts unless the person is licensed as a life insurance producer by the department and is authorized to solicit or sell variable group contracts by an insurer who is admitted to transact variable group contract business in this state.

C. Any examination that is administered by the department to determine if a person is eligible for licensing as an insurance producer may include any questions that the director deems appropriate and that concern the history, purpose, regulation and sale of variable contracts or variable group contracts.

D. Any person who is qualified to sell or offer to sell variable contracts or variable group contracts under this article shall immediately report to the director:

1. The suspension or revocation of the insurance producer's license in any other state or territory of the United States.

2. The imposition of any disciplinary sanction, including the suspension or expulsion of the insurance producer from membership, or suspension, revocation or denial of the insurance producer's registration by any national securities exchange, national securities association or federal, state or territorial agency that has jurisdiction over securities or variable contracts.

3. The entry of a judgment or injunction against the insurance producer for conduct involving fraud, deceit or misrepresentation or a violation of any insurance or securities law.

E. The director may reject an application or suspend, revoke or refuse to renew an insurance producer's qualification to sell or offer to sell variable contracts on any ground that would bar the applicant or insurance producer from being licensed to sell other life insurance contracts in this state. The rules that apply to a proceeding relating to the suspension or revocation of an insurance producer's license also apply to a proceeding for the suspension or revocation of an insurance producer's qualification to sell or offer to sell variable contracts.