CHAPTER 541

An Act to amend the Code of Virginia by adding in Chapter 7 of Title 38.1
a new article designated Article 2.1, consisting of sections numbered
88.1-801.1 through 38.1-801.9, inclusive, to provide for the qualification
of life insurance and accident and sickness insurance agents. [8 862]

Approved March 30, 1956

Be it enacted by the General Assembly of Virginia: ;
1. That the Code of Virginia be amended by adding in Chapter 7 of Title
38.1 a new article designated Article 2.1 consisting of sections numbered
88.1-301.1 through 38.1-301.9, inclusive, as follows:

Article 2.1
Qualification of Life Agents

§ 38.1-301.1. Certificates of qualification required of life agents—On
and after May first, nineteen hundred fifty-seven every individual who
desires to obtain a license as a life agent shall first obtain a certificate of
qualification from the Commission, but for the purposes of this article the
term “life agent” shall not be construed as applying to agents of cooperative
nonprofit life benefit companies as defined in Chapter 10 of this title, agents
of life and casualty cooperative or assessment companies as defined in
Chapter 11 of this title, agents of burial societies as defined in Chap 12
of this title, or ticket-selling agents of a railroad or steamship company,
carrier by air, or public bus carrier, who shall act as agents in the sale of
travel accident insurance to individuals.

§ 38.1-301.2. Certificates of qualification of ex-service men previously
licensed as life agents.—Any person who held a life agent’s license bearing
an effective date on or after May first, nineteen hundred fifty-three, and
who returns from service in the armed forces, shall, upon application to the
Commission on forms prescribed by it within two years from the date of
his honorable discharge, be entitled to and receive a certificate of qualifica-
tion without being required to take a written examination or to comply
with the other requirements of § 38.1-301.3, or to pay the fee required by
§ 38.1-301.5 unless such fee has not theretofore been paid. This section
shall not apply to any agent whose application for a license has been re-
fused or whose license has been suspended or revoked under the provisions
of § 38.1-311.

§ 38.1-301.38. Examination for qualification of life agents —The Com-
mission shall conduct examinations for certificates of qualification for life
agents to be held not less than monthly each year, at such times and places
as it prescribes. Each applicant shall pass a written examination prescribed
by the Commission, and shall satisfy the Commission that he has a sufficient
knowledge of the kind of insurance business in which he proposes to en-
gage to conduct the same intelligently ; provided, however, that no written
examination shall be required of an applicant for a life agent’s license
whose company certifies to the Commission that he has successfully com-
pleted an agents’ training course given by his company and which is con-
sidered by the Commission reasonably adequate to assure that he is
qualified; and provided further, however, that where the Commission is
also satisfied from the application and references furnished with the
agent’s application for license that he will sell only insurance on which
premiums are payable monthly or oftener, no examination of such agent
shall be required.

§ 38.1-301.4. Temporary licenses for life agents; when issued.—A
temporary life agent’s license shall be issued by the Commission in the
following circumstances:
CH. 541] ACTS OF ASSEMBLY W771

(1) Upon the death of an agent, to his personal representative, surviv-
ing consort, employee or next of kin; . _.

(2) Upon the inability of an agent to act because of sickness, injury or
mental incapacity, to his consort, next of kin, employee or legal repre-
sentative;

(3) Upon the sale of an agent’s business, to the purchaser of the
business, or to any person employed in such business;

(4) To an applicant for a license as an agent of a company that has or
conducts for its agents a training course reasonably adequate, in the opinion
of the Commission, for such purpose; .

(5) To an applicant for a license whose duties for the company he
represents or proposes to represent will require that he regularly or from
time to time collect premiums on policies of industrial life or industrial
accident and sickness insurance; for the purposes of this provision, policies
of industrial life insurance and policies of industrial accident and sickness
ingucaniee is that insurance on which premiums are payable monthly or
oftener.

Before any such temporary license is issued the applicant shall file with
the Commission an application in writing in such form and containing such
information as the Commission may prescribe. No written examination
shall be required of the applicant, but no license shall be issued until the
Commission is satisfied that the applicant is trustworthy and competent to
serve. A temporary license shall be for a period of six months; but one
holding a temporary license shall not thereby be prevented from securing
a life agent’s license by meeting the requirements for the latter, nor shall
a temporary license be required before one may obtain a life agent’s license.

§ 38.1-301.5. Application for examination for certificate of qualifica-
tion for life agents; fee required.—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 Commission prescribes. Each applicant shall, at the time of applying to
take any examination, pay a fee of five dollars, which shall be collected by
the Commission and be paid directly into the State treasury and placed to
the credit of the fund for the maintenance of the division or bureau of the
Commission established for the administration of the insurance laws of the
State. The fee shall not be refundable. If the applicant fails to appear for
the examination within six months from the date his application is filed
with the Commission, the application shall be considered withdrawn.

§ 38.1-301.6. Issue of certificate of qualification to applicants previ-
ously licensed as life agents._-Any person who on or after May first, nine-
teen hundred fifty-five, was licensed as an agent to solicit, negotiate or effect
life insurance and annuity contracts or accident and sickness insurance,
shall, upon application to the Commission on such forms as may be pre-
scribed by it, be entitled to and shall receive a certificate of qualification
to solicit, negotiate or effect the kinds of insurance for which he is licensed
on that date without being required to take the written examination pre-
scribed by this article or to comply with the other requirements thereof.

§ 38.1-301.7. Issue of certificate of qualification for life agents.—
Each applicant who has satisfied the Commission that he is of good char-
acter, that he bears a good reputation for honesty, that he has met the
requirements of this article, and that he has sufficient knowledge of the
class and kind of insurance business in which he proposes to engage to
conduct the same intelligently, shall be entitled to and shall receive a certifi-
cate of qualification in such form as the Commission prescribes, provided,
however, that any applicant who meets the requirements of § 38.1-301.3
by the completion of an agent’s training course as provided therein shall
pay a fee of two dollars for such certificate which shall be paid directly
772 ACTS OF ASSEMBLY [vA., 1956

into the State treasury and placed to the credit of the fund for the mainte-
nance of the division or bureau of the Commission established for the ad-
ministration of the insurance laws of the State.

§ 38.1-801.8. Revocation, etc., of license revokes qualification.—If
the Commission refuses to grant or revokes a license as agent, and such
license was issued upon a certificate of qualification obtained under the
provisions of this article, or if any agent or prospective agent fails to obtain
any such license for a period of ninety days after obtaining the certificate
of qualification, or after a lapse or cancellation of any such license for-
merly held, the certificate of qualification shall likewise be revoked. Except
as otherwise provided in § 88.1-301.2, no individual whose certificate of
qualification is revoked as provided herein shall again be issued a certificate
of qualification without first complying with all of the requirements of this
article applicable to obtaining new certificates.

§ 38.1-301.9. Reciprocal agreement with other states——The Com-
mission may enter into a reciprocal agreement with an appropriate official
of any other state waiving the written examination required by this article
of any applicant residing in such other state provided:

(1) That a written examination is required of applicants for an agent’s
license in such other state;

(2) That the appropriate official of such other state certifies that
the applicant holds a currently valid license as a life agent in such other
state and has either passed such written examination or was the holder
of an agent’s license prior to the time such written examination was re-
quired; and

(3) That the applicant was licensed as a life agent prior to the time
such written examination was required.

2. This act shall become effective April one, nineteen hundred fifty-seven