A. A resident individual applying for an insurance producer license shall pass an examination within the one year period that precedes the date the director received the individual’s license application unless the individual is exempt pursuant to section 20-288. The examination shall test the knowledge of the individual concerning the lines of authority for which the application is made, the duties and responsibilities of an insurance producer and the insurance laws of this state.

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B. For an individual called into active military service after passing the examination, the one year period prescribed by subsection A of this section shall be extended by the number of days that the individual was in active military service, not to exceed a total of one and one-half years. An individual applying for an insurance producer license pursuant to this subsection shall include with the license application a copy of the documentation from the armed forces showing the period of time that the individual was in active military service. For the purposes of this subsection, active military service does not include periodic and routine service as a military reservist.

C. The director shall make the examination available to applicants for licenses with such frequency as shall meet the reasonable convenience of both the director and applicants, but at least every sixty days. The director may reasonably prescribe by rule the time, places and conduct of examinations. Except as provided in subsection H of this section, the director may require a reasonable waiting period before examination of an applicant who failed to pass a previous similar examination.

D. The director shall ensure that all examinations are given, conducted and graded in a fair and impartial manner and without unfair discrimination as among individuals examined. At the director’s discretion, any written examination may be supplemented by an oral examination of the applicant. The director shall inform the applicant of the result of the examination within thirty days after the examination.

E. The director may appoint one or more advisory committees to make recommendations to the director as to the scope, type and conduct of written examinations under this article. The members of the committee shall serve without pay and without expense to the state.

F. An individual who fails to appear for the examination as scheduled or who fails to pass the examination shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination.

G. An individual shall not take an examination for a line of authority for which the individual already holds a license in this state.

H. The director shall not allow an individual to take an examination administered for any line of license authority pursuant to this section more than four times within a twelve month period. If an individual fails an examination for a specific line of authority four times, the individual may not take an examination for that line of authority for one year. For the purposes of this subsection, an individual who fails an examination that covers more than one line of license authority is considered to have failed the examination for each individual line of license authority.