Senate Bill No. 307
(By Senator Anderson)
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[Introduced March 12, 1997; referred to the
Committee on Banking and Insurance.]
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A BILL to amend and reenact section two, article twelve, chapter
thirty-three of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to allowing
insurance agents who are moving to West Virginia from
another state to use their class hours and competency test
scores from the other state to obtain their license in West
Virginia.
Be it enacted by the Legislature of West Virginia:
That section two, article twelve, chapter thirty-three of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 12. AGENTS, BROKERS, SOLICITORS AND EXCESS LINE.
§33-12-2. Qualifications.
(a) For the protection of the people of West Virginia, the
commissioner shall not issue, renew or permit to exist any
agent's, broker's or solicitor's license except to an individual
who:
(a) (1) Is eighteen years of age or more.
(b) (2) Is a resident of West Virginia, except that a
broker's license shall be issued only to nonresidents, and except
for nonresident life and accident and sickness agents as provided
in section eight of this article.
Effective the first day of June, one thousand nine hundred
ninety-one, brokers, licenses shall cease to exist. Licensing of
nonresidents for property casualty will be made pursuant to
section eight-a of this article.
(c) (3) Is, in the case of an agent applicant, appointed as
agent by a licensed insurer for the kind or kinds of insurance
for which application is made, subject to issuance of license,
or, in the case of a solicitor applicant, appointed as solicitor
by a licensed resident agent, subject to issuance of license,
except that on or after the first day of June, one thousand nine
hundred ninety, no solicitor's license will be issued which is
not a renewal of an existing license.
(d) (4) Does not intend to use the license principally for
the purpose, in the case of life or accident and sickness
insurance, of procuring insurance on himself, members of his
family or his relatives; or, as to insurance other than life and
accident and sickness, upon his property or insurable interests
of those of his family or his relatives or those of his employer,
employees or firm, or corporation in which he owns a substantial
interest, or of the employees of such the firm or corporation, or
on property or insurable interests for which the applicant or any
such relative, employer, firm or corporation is the trustee,
bailee or receiver. For the purposes of this provision, a
vendor's or lender's interest in property sold or being sold under contract or which is the security for any loan, shall not
be deemed to constitute property or an insurable interest of such
the vendor or lender.
(e) (5) Satisfies the commissioner that he is trustworthy
and competent. The commissioner may test the competency of an
applicant for a license under this section by examination. Each
examinee shall pay a twenty-five dollar examination fee for each
examination to the commissioner who shall deposit said
examination fee into the state treasury for the benefit of the
state fund, general revenue. The commissioner may, at his
discretion, designate an independent testing service to prepare
and administer such examination subject to direction and approval
by the commissioner, and examination fees charged by such the
service shall be paid by the applicant.
(f) (6) For new agents first licensed on or after the first
day of July, one thousand nine hundred eighty-nine, completes a
program of insurance education as established below.
There is hereby created the board of insurance agent
education. The board of insurance agent education shall consist
of the commissioner of insurance and six members appointed by the
commissioner. The members appointed by the commissioner shall be
two licensed property and casualty insurance agents, one licensed
life insurance agent, one licensed health and accident insurance
agent, one representative of a domestic insurance company, and
one representative of a foreign insurance company: Provided,
That no board shall be appointed that fails to include companies
or agents for companies representing at least two thirds of the
net written insurance premiums in the state. Each member shall serve a term of three years and shall be eligible for
reappointment.
(1) (A) The board of insurance agent education shall
establish the criteria for a program of insurance education and
submit the proposal for the approval of the commissioner on or
before the thirty-first day of December of each year.
(2) (B) 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
article: Provided, That any person who was a licensed agent,
broker or solicitor on the first day of July, one thousand nine
hundred eighty-nine, and who subsequently terminates the
contractual relationship with the insurer or employing agent, may
have that license renewed within five years of such termination
without complying with the competency testing provisions of
subdivision (e) (5) or the education provisions of subdivision
(f) (6)of this section.
(b) Insurance agents who are moving to West Virginia from
another state shall be permitted to use their competency test
scores and class hours from the other state to satisfy the
requirements of subdivisions (5) and (6), subsection (a) of this
section.
NOTE: The purpose of this bill is to allow insurance agents who are moving to West Virginia from another state to use their
class hours and competency test scores from the other state to
obtain their license in West Virginia.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.