WHAT CAN MY NEW , UNLICENSED EMPLOYEE DO ? written by Beth Smoller , KAIA
From our montly mailbox comes another frequent question we see at KAIA . We know hiring continues to be a challenge and a frequent inquiry is what a newly hired , unlicensed employee can and can ’ t do once she or he begins work at the insurance agency .
This would apply to any unlicensed employee , but we know most of our agencies get all of their employees licensed , so new hires are the most frequent example we see .
K . S . A . 40-4904 is the Uniform Insurance Agents Licensing Act and it is the governing statutory framework for all licensed insurance agents in Kansas . K . S . A . 40-214 makes it unlawful for any person to transact the business of insurance unless such person is duly authorized to transact such business , but the
Uniform Insurance Agents Licensing Act provides more information about transacting insurance business .
Based upon these statutes , we provide the following guidelines for licensed and unlicensed personnel in your insurance agency . These guidelines are by no means all-inclusive and there may be other scenarios that need clarification . We are happy to provide clarification , however , the Kansas Insurance Department is the final arbiter regarding these rules and we always encourage our members to reach out to it for clarity and guidance .
Unlicensed employees CANNOT :
U Sell , solicit , or negotiate insurance contracts .
12 KANSAS INSURANCE AGENT & BROKER