Senate Bill No. 382

(By Senators Bailey and Buckalew)

____________

[Introduced March 20, 1997; referred to the Committee
on Banking and Insurance.]
____________




A BILL to amend and reenact section two-a, article twelve, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to further amend said article by adding thereto a new section, designated section eighteen-a, all relating to continuing education for insurance agents, brokers, solicitors and excess line brokers; providing for inactive status; and transfer to active status.

Be it enacted by the Legislature of West Virginia:
That section two-a, article twelve, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that said article be further amended by adding thereto a new section, designated section eighteen-a, all to read as follows:
ARTICLE 12. AGENTS, BROKERS, SOLICITORS AND EXCESS LINE.
§33-12-2a. Continuing education required.

The purpose of this provision is to provide continuing education under guidelines set up under the insurance commissioner's office effective the first day of July, one thousand nine hundred ninety-two, with the guidelines to be set up under the board of insurance agent education. Nothing in this section shall prohibit an individual from receiving commissions which have been vested and earned while that individual maintained an approved insurance agent's license.
(a) This section applies to persons licensed to engage in the sale of the following types of insurance:
(1) Life insurance, annuity contracts, variable annuity contracts and variable life insurance;
(2) Sickness, accident and health insurance;
(3) All lines of property and casualty insurance; and
(4) All other lines of insurance for which an examination is required for licensing.
(b) This section does not apply to:
(1) Persons holding resident 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 such limited or restricted license as that the commissioner may exempt;
(2) Individuals selling credit life or credit accident and health insurance.
(c)(1) The board of insurance agent education as established by section two 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. Each year after the first day of July, one thousand nine hundred ninety-seven eight, the program shall contain a requirement that any person appointed to be an agent on behalf of a licensed health maintenance organization at any time during the relevant biennium year must, as a component of his or her mandatory continuing insurance education, complete a minimum of six hours of continuing insurance education during the biennium period beginning the first day of January and ending on the thirty-first day of December which is on topics specific to health maintenance organizations.
No program shall be approved by the commissioner that includes a requirement that any agent complete more than thirty six hours of continuing insurance education biennially annually. No program shall be approved by the commissioner that includes a requirement that any of the following individuals complete more than six hours of continuing insurance education biennially annually:
(A) Insurance agents who sell only preneed burial insurance contracts; and
(B) Insurance agents who engage solely in telemarketing insurance products by a scripted presentation which scripted presentation has been filed with and approved by the commissioner.
(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) Persons 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 person, 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) Any person, failing to meet the requirements mandated in this section, and who has not been granted an extension of time, with respect to such requirements, or who has submitted to the commissioner a false or fraudulent certificate of compliance shall, after a hearing thereon, which hearing may be waived by the person, be subjected to suspension of all licenses issued for any kind or kinds of insurance. No further license may be issued to the person for any kind or kinds of insurance until he or she has demonstrated 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) Hearings for the violation of any provision of this section, and the administrative procedure prior to, during and following these hearings, shall be conducted in accordance with the provisions of article two of this chapter.
(h) The commissioner is authorized to hire personnel and make reasonable expenditures as deemed necessary for purposes of establishing and maintaining a system of continuing education for insurers.
§33-12-18a. Inactive status; transfer to active status.
(a) Any agent, solicitor or broker not under suspension, who does not desire to sell insurance in this state, may, upon written request to the commissioner, be enrolled as inactive.
(b) Any inactive agent, solicitor or broker not under suspension may transfer to active status upon written request to the commissioner. Upon the filing of such request, and the payment of the license fee for the current year as required by section six of this article, and upon a completion of six hours of mandatory continuing insurance education within the calendar year he or she chooses to transfer to active status, the agent, solicitor or broker shall be transferred to active status.

NOTE: The purpose of this bill is to reduce the number of continuing education hours an agent, broker, solicitor or excess line broker must complete to renew his license. The bill further creates active and inactive status for agents, brokers, solicitors and excess line brokers.

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

§33-12-18a is new; therefore, strike-throughs and underscoring have been omitted.