(1)

1. (a) The commissioner may require applicants for any particular license type under Section 31A-23a-106 to pass a line of authority examination as a requirement for a license, except that an examination may not be required of applicants for:

   1. (i) licenses under Subsection 31A-23a-106(2)(c); or
   2. (ii) other limited line license lines of authority recognized by the commissioner or the Title and Escrow Commission by rule as provided in Subsection 31A-23a-106(3).

2. (b) The examination described in Subsection (1)(a):

   1. (i) shall reasonably relate to the line of authority for which it is prescribed; and
   2. (ii) may be administered by the commissioner or as otherwise specified by rule.

(2) The commissioner shall waive the requirement of an examination for a nonresident applicant who:

1. (a) applies for an insurance producer license in this state;
2. (b) has been licensed for the same line of authority in another state; and

3. (c)

   1. (i) is licensed in the state described in Subsection (2)(b) at the time the applicant applies for an insurance producer license in this state; or

   2. (ii) if the application is received within 90 days of the cancellation of the applicant's previous license:

      1. (A) the prior state certifies that at the time of cancellation, the applicant was in good standing in that state; or
      2. (B) the state's producer database records maintained by the National Association of Insurance Commissioners or the National Association of Insurance Commissioner's affiliates or subsidiaries, indicates that the producer is or was licensed in good standing for the line of authority requested.