Chap. 293.-An ACT to provide for the examination by the State Corporation
Commission of certain applicants for license as an insurance agent or solicitor ;
to provide for the issuance and revocation of certificates of qualification; fees;
exceptions. [fH B 311]

Approved March 30, 1942

1. Be it enacted by the General Assembly of Virginia, as follows:
Section 1. On and after August first, nineteen hundred and forty-
two, no individual shall be issued a certificate of registration, or license,
as an agent for a fire, casualty or surety insurance company or association,
except title and ocean marine insurance companies or associations, and
no individual shall be issued a certificate of registration, or license, as a
solicitor to solicit fire, casualty or surety business for any insurance agent
or insurance agency, as provided in section forty-two hundred and
thirty-five and section forty-two hundred and thirty-five-b of the Code
of Virginia, unless such individual holds a certificate of qualification
issued by the State Corporation Commission, as hereinafter provided.

Section 2. The State Corporation Commission, or its representative
or representatives, shall conduct examinations for certificates of qualifi-
cation not less than four times each year, at times and places to be fixed
by the Commission. Each applicant, whether he proposes to engage in
the insurance business on a full-time basis or on a part-time basis, shall
pass a written examination prescribed by the Commission and shall satisfy
the Commission that he has a sufficient knowledge of the class and sub-
division of the insurance business in which he proposes to engage to
conduct the same intelligently.

Section 3. Each applicant for an examination shall make a written
application to the Commission, at least fifteen days prior to the date of
examination, in such form and containing such information as the Com-
mission may prescribe. Every applicant to take any written examination
shall, at the time of applying therefor, pay a fee of five dollars, which
shall be collected by the Commission and shall be paid directly into the
State treasury and placed to the credit-of the fund for the maintenance of
the Bureau of Insurance, provided further, however, that upon the death
or inability further to act as an insurance agent licensed for a given
company, the Commission may, in its discretion, issue a temporary
license to another person, enabling such other person to represent such
insurance company, upon application made to the Commission upon
forms to be prescribed by them. Such license shall continue only until the
holder is afforded opportunity to take the examination, but not to exceed
a period of three months. . | |

Section 4. Each such applicant who has satisfied the Commission
that he is of good character, bears a good reputation for honesty, has
passed a written examination, as prescribed by the Commission, and has
satisfied the Commission that he has sufficient knowledge of the class and
sub-division of the insurance business in which he proposes to engage to
conduct the same intelligently, shall be entitled to and shall receive a
certificate of qualification in such form and size as the Commission shall
prescribe, which certificate of qualification shall be prominently displayed
in his place of business.

_ Section 5. Any person, who, on August first nineteen hundred and
forty-two, shall hold a certificate of registration, or license, as an insur-
ance agent for any fire, casualty or surety insurance company, or a certi-
ficate of registration, or license, as an insurance solicitor to solicit fire,
casualty or surety business for any insurance agent or agency, shall, upon
application to the Commission on forms to be prescribed by it, be en-
titled to and shall receive a certificate of qualification without being re-
cH. 293] ACTS OF ASSEMBLY 417

quired to take the written examination or to comply with the other re-
quirements of this act. , ,

Section 6. Before the issuance of such certificate the applicant
shall pay to the State Corporation Commission a fee of two dollars, which
shall be paid directly into the State treasury and placed to the credit of
the fund for the maintenance of the Bureau of Insurance.

Section 7. Any revocation or refusal of a certificate, or certificates,
of registration, or license, as agent of a fire, casualty or surety insurance
company by the Commission under the provisions of section forty-two
hundred and thirty-five of the Code of Virginia, or any revocation, or
refusal of a certificate, or certificates, of registration, or license, as an
insurance solicitor to solicit fire, casualty or surety business for any in-
surance agent or agency, by the Commission under the provisions of
section forty-two hundred and thirty-five-b of the Code of Virginia, or
any failure on the part of any such agent or solicitor or any prospective
agent or solicitor, to secure or renew a certificate, or certificates, of resig-
tration, or license, as agent of a fire, casualty or surety insurance com-
pany, or as solicitor to solicit fire, casualty or surety business for any
insurance agent or agency for a period of ninety days after securing a
certificate of qualification, or after lapse, or cancellation, of such certifi-
cate, or certificates, of registration, or license, formerly held, shall serve
to revoke the certificate of qualification granted to the holder of such
certificate under this act, and no individual whose certificate of qualifica-
tion 1s revoked, as provided herein, shall again be issued such a certificate
of qualification without first complying with all of the requirements of this
act.

Section 8. The expenses incurred by the Commission in the per-
formance of the duties prescribed by this act shall be paid out of the
funds for the maintenance of the Bureau of Insurance as other expenses
of the Bureau are paid.

Section 9. A certificate of qualification shall not be required as a
prerequisite to the issuance of an agent’s certificate of registration, or
license, (1) of any person who shall act thereunder as insurance agent
only in reference to the issuance of accident insurance tickets primarily
for the purpose of covering risks of travel, and who is a ticket-selling
agent or representative of a railroad company, steamship company, car-
rier by air or public bus carrier, (2) nor of any persons licensed to sell
life insurance, personal accident insurance and health insurance or any
of the three types of insurance, whether individual or group.

This act shall not apply to representatives of fraternal benefit so-
cieties nor to representatives of any mutual fire insurance company con-
ducting business exclusively in this State and on the mutual plan, which
pays its losses wholly from assessments upon its members.