Senate Bill No. 644
(By Senators Palumbo and Kessler)
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[Introduced March 19, 2009; referred to the Committee on Banking
and Insurance.]
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A BILL to amend and reenact §33-12-8 of the Code of West Virginia,
1931, as amended, relating to insurance producers and
solicitors and continuing education; and removing the two-hour
credit for continuing education by belonging to a state,
regional or national professional insurance organization or
association.
Be it enacted by the Legislature of West Virginia:
That §33-12-8 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 12. INSURANCE PRODUCERS AND SOLICITORS.
§33-12-8. Continuing education required.
The purpose of this provision is to provide continuing
education under guidelines set up under the Insurance
Commissioner's office, with the guidelines to be set up under the
Board of Insurance Agent Education.
(a) This section applies to individual insurance producers
licensed to engage in the sale of the following types of insurance:
(1)
Life. -- Life insurance coverage on human lives, including
benefits of endowment and annuities, and may include benefits in
the event of death or dismemberment by accident and benefits for
disability income;
(2)
Accident and health or sickness. -- Insurance coverage for
sickness, bodily injury or accidental death and may include
benefits for disability income;
(3)
Property. -- Property insurance coverage for the direct or
consequential loss or damage to property of every kind;
(4)
Casualty. -- Insurance coverage against legal liability,
including that for death, injury or disability or damage to real or
personal property;
(5)
Variable life and variable annuity products. -- Insurance
coverage provided under variable life insurance contracts and
variable annuities;
(6)
Personal lines. -- Property and casualty insurance
coverage sold to individuals and families for primarily
noncommercial purposes; and
(7) Any other line of insurance permitted under state laws or
regulations.
(b) This section does not apply to:
(1) Individual insurance producers holding limited line credit insurance licenses for any kind or kinds of insurance offered in
connection with loans or other credit transactions or insurance for
which an examination is not required by the commissioner, nor does
it apply to any limited or restricted license as the commissioner
may exempt; and
(2) Individual insurance producers selling credit life or
credit accident and health insurance.
(c) (1) The Board of Insurance Agent Education as established
by section seven of this article shall develop a program of
continuing insurance education and submit the proposal for the
approval of the commissioner on or before December 31, of each
year. No program may be approved by the commissioner that includes
a requirement that any individual insurance producer complete more
than twenty-four hours of continuing insurance education
biennially. No program may be approved by the commissioner that
includes a requirement that any of the following individual
insurance producers complete more than six hours of continuing
insurance education biennially:
(A) Individual insurance producers who sell only preneed
burial insurance contracts; and
(B) Individual insurance producers who engage solely in
telemarketing insurance products by a scripted presentation which
scripted presentation has been filed with and approved by the
commissioner.
(C) The biennium mandatory continuing insurance education
provisions of this section become effective on the reporting period
beginning July 1, 2006.
(2) The commissioner and the board, under standards
established by the board, may approve any course or program of
instruction developed or sponsored by an authorized insurer,
accredited college or university, agents' association, insurance
trade association or independent program of instruction that
presents the criteria and the number of hours that the board and
commissioner determine appropriate for the purpose of this section.
(d) Individual insurance producers licensed to sell insurance
and who are not otherwise exempt shall satisfactorily complete the
courses or programs of instructions the commissioner may prescribe.
(e) Every individual insurance producer subject to the
continuing education requirements shall furnish, at intervals and
on forms as may be prescribed by the commissioner, written
certification listing the courses, programs or seminars of
instruction successfully completed by the person. The
certification shall be executed by, or on behalf of, the
organization sponsoring the courses, programs or seminars of
instruction.
(f) Subject to the approval by the commissioner, the active
annual membership by an individual insurance producer in an
organization or association recognized and approved by the commissioner as a state, regional or national professional
insurance organization or association may be approved by the
commissioner for up to two hours of continuing insurance education:
Provided, That not more than two hours of continuing insurance
education may be awarded to an individual insurance producer for
membership in a professional insurance organization during a
biennial reporting period. Credit for continuing insurance
education pursuant to this subdivision may only be awarded to
individual insurance producers who are required to complete more
than six hours of continuing education biennially.
(g) (f) Individual insurance producers who are required to
complete more than six hours of continuing education biennially and
who exceed the minimum continuing education requirement for the
biennial reporting period may carry-over a maximum of six credit
hours only into the next reporting period.
(h) (g) Any individual insurance producer failing to meet the
requirements mandated in this section and who has not been granted
an extension of time, with respect to the requirements, or who has
submitted to the commissioner a false or fraudulent certificate of
compliance shall have his or her license automatically suspended
and no further license may be issued to the person for any kind or
kinds of insurance until the person demonstrates to the
satisfaction of the commissioner that he or she has complied with
all of the requirements mandated by this section and all other applicable laws or rules.
(i) (h) The commissioner shall notify the individual insurance
producer of his or her suspension pursuant to subsection (h) of
this section by certified mail, return receipt requested, to the
last address on file with the commissioner pursuant to subsection
(e), section nine of this article. Any individual insurance
producer who has had a suspension order entered against him or her
pursuant to this section may, within thirty calendar days of
receipt of the order, file with the commissioner a request for a
hearing for reconsideration of the matter.
(j) (i) Any individual insurance producer who does not
satisfactorily demonstrate compliance with this section and all
other laws applicable thereto as of the last day of the biennium
following his or her suspension shall have his or her license
automatically canceled and is subject to the education and
examination requirements of section five of this article.
(k) (j) The commissioner is authorized to hire personnel and
make reasonable expenditures considered necessary for purposes of
establishing and maintaining a system of continuing education for
insurers. The commissioner shall charge a fee of $25 to continuing
education providers for each continuing education course submitted
for approval which shall be used to maintain the continuing
education system. The commissioner may, at his or her discretion,
designate an outside administrator to provide all of or part of the administrative duties of the continuing education system subject to
direction and approval by the commissioner. The fees charged by
the outside administrator shall be paid by the continuing education
providers. In addition to fees charged by the outside
administrator, the outside administrator shall collect and remit to
the commissioner the $25 course submission fee.
NOTE: The purpose of this bill is to remove the two hour
credit for continuing education by belonging to a state, regional
or national professional insurance organization or association.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.