State RegulationsVA specificDifficulty 2/5
An insurer's full-time, salaried office manager in Virginia performs executive and clerical work connected to insurance sales but never sells, solicits, or negotiates policies and receives no commission. Is a producer license required?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Va. Code § 38.2-1821.1 excepts from producer licensing an insurer's or producer's officers, directors, and employees whose activities are executive, administrative, managerial, or clerical and only indirectly related to insurance sales, provided they receive no direct or indirect commission. The recurring pattern of the exception is no selling, soliciting, or negotiating and no commission, which the office manager satisfies. The Commission and the Virginia Bureau of Insurance enforce the boundary: start selling or take commissions, and the exception evaporates.
Why the other options are wrong
- A) Work connected to sales is licensable only when it involves selling, soliciting, or negotiating or commission-based pay; purely administrative work is excepted.
- B) No posting or notice mechanism conditions the exception.
- C) Employer certification is not the test; the employee's activity and pay structure are.
Memory hook
Salaried, selling-free, commission-free — the trio that keeps an employee unlicensed.