(a) No person shall act as or hold himself or herself out to be an agent, subagent, counselor, adjuster, or insurance agency in this state unless such person first procures a license from the Commissioner.

(b) No agent or subagent shall solicit or take applications for, procure, or place for others any kind of insurance for which such agent or subagent is not then licensed and for which a certificate of authority is not currently on file with the Commissioner; provided, however, no certificate of authority shall be required for:

(1) An agent who places insurance with or through another agent involving 12 or fewer policies or certificates of insurance in any one calendar year;

(2) An agent who places surplus lines insurance with or through a surplus lines broker, only with respect to such surplus lines insurance; or

(3) An agent who, with agreement of an insurer, places a specific policy or risk with such insurer provided the insurer within 15 days of the acceptance of the risk files with the Commissioner an application for a specific certificate of authority in such form and manner as may be prescribed by the Commissioner.

(c) No insurer or agent doing business in this state shall pay, directly or indirectly, any commissions or any other valuable consideration to any person for services as an agent, subagent, or adjuster within this state, unless such person is duly licensed in accordance with this article.

(d) An insurer may pay a commission or other valuable consideration to a licensed insurance agency in which all employees, stockholders, directors, or officers who solicit, negotiate, or effectuate insurance contracts are qualified insurance agents, subagents, or counselors holding currently valid licenses as required by the laws of this state; and an agent, subagent, or counselor may share any commission or other valuable consideration with such a licensed insurance agency.

(e) No person, partnership, or corporation other than a duly licensed adjuster, agent, subagent, or counselor shall pay or accept any commission or other valuable consideration except as provided in subsections (c) and (d) of this Code section.

(f) This Code section shall not prevent the payment or receipt of renewal or deferred commissions by any agency or a person on the grounds that the licensee has ceased to be an agent, subagent, or counselor nor prevent the receipt or payment of any commission by a person who has been issued a temporary license pursuant to this chapter.

(g) Any person who has been licensed as an agent for ten consecutive years or more and who does not perform any of the functions specified in paragraph (3) of subsection (a) of Code Section 33-23-1 other than receipt of renewal or deferred commissions shall be exempt from the requirement to maintain at least one certificate of authority; provided, however, that if such person wishes to again perform any of the other functions specified in said paragraph, such person must obtain approval from the Commissioner and comply with the requirements of this chapter, including without limitation the requirements for certificate of authority.

(h) Any person who willfully violates this Code section shall be guilty of a misdemeanor and, upon conviction thereof, shall be subject to punishment as provided in Code Section 17-10-3, relating to punishment for misdemeanors.