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Introduced Version Senate Bill 750 History

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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 750

(By Senator Oliverio)

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[Introduced February 18, 2008; referred to the Committee on Banking and Insurance.]

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A BILL to amend and reenact §33-12-5, §33-12-8, §33-12-14 and §33-12-17 of the Code of West Virginia, 1931, as amended; and to amend and reenact §33-12B-5 and §33-12B-9 of said code, all relating to requiring a waiting period after a third failure on the licensing examination; allowing for continuing education credit for active annual membership in professional organizations or associations; requiring nonresidents who move to West Virginia to complete prelicensing education and examination when their prior state does not grant waivers to individuals who formerly were licensed in West Virginia; establishing penalties for failure to pay annual continuation fees; requiring a waiting period after a third failure on adjuster's license examination; and permitting nonresident adjusters to not maintain an office in this state.

Be it enacted by the Legislature of West Virginia:
That §33-12-5, §33-12-8, §33-12-14 and §33-12-17 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that §33-12B-5 and §33-12B-9 of said code be amended and reenacted, all to read as follows:
ARTICLE 12. INSURANCE PRODUCERS AND SOLICITORS.
§33-12-5. Application of examination.

(a) A resident individual applying for an insurance producer license shall pass a written examination unless exempt pursuant to section fourteen of this article. The examination shall test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer and the insurance laws and regulations of this state. Examinations required by this section may be developed and conducted under rules and regulations prescribed by the Insurance Commissioner.
(b) The Insurance Commissioner may make arrangements, including contracting with an outside testing service, for administering examinations and collecting the nonrefundable fee set forth in subdivision (8), subsection (a), section six of this article.
(c) Each individual applying for an examination shall remit a nonrefundable fee as prescribed by the Insurance Commissioner as set forth in subdivision (8), subsection (a), section six of this article.
(d) An individual who fails to appear for the examination as scheduled or fails to pass the examination, shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination.
(e) An individual who fails to pass examination is limited to seven additional attempts to pass the examination: Provided, That after every third unsuccessful attempt to pass the examination, an individual is required to wait four weeks before he or she may take the examination again.
§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 the thirty-first day of December 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 the first day of July, two thousand six.
(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. Subject to approval by the commissioner, the active annual membership of the individual insurance producer in local, regional, state or national professional insurance organizations or associations may be approved for up to two annual hours of instruction. These hours shall be credited upon timely filing with the commissioner or his or her designee appropriate written evidence acceptable to the commissioner of the active membership in the organization or association.
(f) 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.
(g) The commissioner shall notify the individual insurance producer of his or her suspension pursuant to subsection (f) 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.
(h) 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.
(i) 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 twenty-five dollars 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 twenty-five dollar course submission fee.
§33-12-14. Exemption from examination.
(a) An individual who applies for an insurance producer license in this state who was previously licensed for the same lines of authority in another state may not be required to complete any prelicensing education or examination. This exemption is only available if the individual is currently licensed in that state or if the application is received within ninety days of the cancellation of the applicant's previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state's producer database records, maintained by the national association of insurance commissioners, its affiliates or subsidiaries, indicate that the producer is or was licensed in good standing for the line of authority requested.
(b) An individual licensed as an insurance producer in another state who moves to this state shall make application within ninety days of establishing legal residence to become a resident licensee pursuant to section five of this article. No prelicensing education or examination shall be is required of that individual to obtain any line of authority previously held in the prior state except where the insurance commissioner determines otherwise by regulation if his or her prior state will grant similar waivers to West Virginia licensed insurance producers. For nonresidents from states which will not reciprocate on waivers for West Virginia licensed insurance producers, the nonresident licensed in the prior state for less than one year shall complete prelicensing education and pass the appropriate examination required by this article. Nonresidents licensed in the nonwaiver prior state for one or more years shall pass the West Virginia licensure examination, but may apply for a waiver of prelicensing education.
§33-12-17. Expiration of license; renewal.
(a) The commissioner may, in his or her discretion, fix the dates of expiration of respective licenses for individual insurance producers and solicitors in any manner as is considered by him or her to be advisable for an efficient distribution of the work load of his or her office. If the expiration date so fixed would upon first occurrence shorten the period for which license fee has theretofore been paid, no refund of unearned fee shall be made; and if the expiration date so fixed would upon first occurrence lengthen the period for which license fee had theretofore been paid, the commissioner shall charge no additional fee for the lengthened period. If another date is not so fixed by the commissioner, each license shall, unless continued as herein above provided, expire at midnight on the thirty-first day of May next following the date of issuance. The commissioner shall renew annually on the date as provided for in this section the license of the licensee who qualifies and makes application therefor, and has paid the fees set forth in section thirteen, article three of this chapter; and section ten of this article. Failure to pay the fees set forth in section thirteen, article three of this chapter; and section ten of this article, on or before the date required by the commissioner shall result in the following actions: If more than thirty days have elapsed since the due date, payment shall be double the annual continuation fee. If more than sixty days have elapsed since the due date, payment shall be triple the annual continuation fee. If more than ninety days have elapsed since the due date, the agent's license may be summarily suspended with all appointing companies being notified. Reinstatement of the license shall require payment in an amount triple the annual continuation fee. If more than ninety days have elapsed since the date of the suspension, the commissioner may automatically cancel or revoke the license without further hearing or notice.
(b) All producer licenses of insurance agencies shall expire at midnight on the thirtieth day of June following the date of issuance. The commissioner shall renew annually the license of all licensees who qualify and make application therefor and have paid the fees set forth in section ten of this article.
ARTICLE 12B. ADJUSTERS.
§33-12B-5. Qualifications for adjuster's license; examinations; exemptions.

(a) For the protection of the people of West Virginia, the commissioner shall not issue, renew or permit to exist any adjuster's license, except to an individual who:
(1) Is eighteen years of age or more.
(2) Is a resident of West Virginia, except for nonresident adjusters as provided in section nine of this article.
(3) Satisfies the commissioner that he or she is trustworthy and competent.
(b) For purposes of subdivision (3) of subsection (a) herein, the commissioner may, at his or her
discretion, test the competency of an applicant for a license under this section by examination. If such an examination is required by the commissioner, each examinee shall pay a twenty-five dollar examination fee for each examination to the commissioner which fees shall be used for the purposes set forth in section thirteen, article three of this chapter. The commissioner may, at his or her 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 service shall be paid by the applicant.
(c) (1) Any applicant who is engaged in the practice of professional insurance adjusting prior to the first day of July, one thousand nine hundred eighty-nine, shall be is exempt from the examination requirement of subsection (b) of this section.
(2) The commissioner may require a waiting period of four weeks before reexamination of an applicant who thrice failed to pass previous similar examinations. This waiting period applies after every third unsuccessful attempt.
(d) The requirements of this section shall not apply to licenses issued to emergency adjusters as defined in section eleven-a of this article.
§33-12B-9. Licensing of nonresident adjusters.

An individual otherwise complying with the provisions of this chapter, who is a resident of another state and who is a licensed adjuster of such that state, may be licensed as a nonresident adjuster in this state, if the state of resident of such the nonresident has established, by law or regulation, like requirements for the licensing of a resident of this state as a nonresident adjuster. A licensed, nonresident adjuster is not required to maintain an office in this state.



NOTE: The purpose of this bill is to require waiting periods after three failures on examinations for adjuster and insurance producer licenses; allowing for continuing education credit for active annual membership in professional organizations or associations; requiring nonresidents licensed in another state who move to West Virginia to complete prelicensing education and pass the appropriate examination when their prior state will not grant waivers to individual licensed in West Virginia who move to that state; establishing penalties for failure to pay annual continuation fees; and permitting nonresident adjusters to not maintain offices in this state.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
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