(a) No individual shall engage in the business of an insurance consultant until a license therefor has been issued to him or her by the Commissioner; provided, however, that no consultant license shall be required of the following:

(b) An application for a license to act as an insurance consultant shall be made to the Commissioner on forms prescribed by the Commissioner. Within a reasonable time after receipt of a properly completed application form the Commissioner shall hold a written examination for the applicant, and may conduct investigations and propound interrogatories concerning the applicant's qualifications, residence, business affiliations, and any other matter which he or she deems necessary or advisable to determine compliance with this chapter or for the protection of the public.

(c) In advance of rendering any service as a consultant, a written agreement on a form approved by the Commissioner, shall be prepared by the consultant, and shall be signed by both the consultant and the client. The agreement shall outline the nature of the work to be performed by the consultant and shall state his or her fee for the work. The consultant shall retain a copy of the agreement for not less than two years after completion of the services. The copy shall be available to the Commissioner.

(d) No person may concurrently hold a consultant's license and an insurance producer's, surplus lines insurance broker's, or limited lines producer's license in any line.

(e) No licensed consultant may employ, be employed by, or be in partnership with nor receive any remuneration whatsoever, from any licensed insurance producer, surplus lines insurance broker, limited lines producer, or insurer arising out of his or her activities as a consultant.

(f) The license shall be valid for not longer than 24 months and may be renewed biennially and extended in the same manner as an insurance producer's license.

(g) All requirements and standards relating to the denial, revocation, or suspension of an insurance producer's license, including penalties, shall apply to the denial, revocation, and suspension of an insurance consultant's license as nearly as practicable.

(h) A consultant is obligated under his or her license, to serve with objectivity and complete loyalty the interests of his or her client alone; and to render his or her client such information, counsel, and service as within the knowledge, understanding, and opinion, in good faith of the licensee, best serves the client's insurance needs and interests.

(i) Prior to the issuance of a license to an insurance consultant, the applicant shall file with the Commissioner, and thereafter for as long as the license remains in effect, shall keep in force a bond in the penal sum of not less than $5,000.00 with an authorized corporate surety approved by the Commissioner. The aggregate liability of the surety for any and all claims on any bond shall in no event exceed the penal sum thereof. No bond shall be terminated unless at least 60 days' prior written notice thereof is given by the surety to the licensee and the Commissioner. Upon termination of the license for which the bond was in effect, the Commissioner shall notify the surety within ten working days. All surety protection under this subsection is to inure to the benefit of the aggrieved parties. (Amended 1973, No. 217 (Adj. Sess.), § 12; 1975, No. 78, § 2; 2001, No. 97 (Adj. Sess.), § 10.)