H. B. 2836
(By Delegates Beane, Johnson, Amores,
H. White, Facemyer and L. White)
[Introduced February 19, 1999; referred to the
Committee on Banking and Insurance then Government Organization.]
A BILL to amend and reenact sections two and two-a, article
twelve, chapter thirty-three of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, all
relating to changing insurance agent education procedures by
exempting from educational requirements persons who have
been licensed in good standing in other states, and by
authorizing the insurance commissioner to automatically
suspend the insurance license of those persons who fail to
meet continuing insurance education requirements.
Be it enacted by the Legislature of West Virginia:
That sections two and 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, all to
read as follows:
ARTICLE 12. AGENTS, BROKERS, SOLICITORS AND EXCESS LINE.
§33-12-2. Qualifications.
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) Is eighteen years of age or more.
(b) 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) 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) 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 or herself, members of his or her family or his or her relatives; or, as to insurance other
than life and accident and sickness, upon his or her property or
insurable interests of those of his or her family or his or her
relatives or those of his or her employer, employees or firm, or
corporation in which he or she owns a substantial interest, or of
the employees of such 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 vendor or lender.
(e) Satisfies the commissioner that he or she 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 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.
(f) 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: Provided,
That a written waiver from the insurance education requirements
for life, accident and sickness, or property and casualty
insurance may be granted to any person who can demonstrate to the
satisfaction of the commissioner that he or she has been licensed
as a resident agent in good standing in another state within the
sixty-day period immediately preceding his or her application for
a resident license in West Virginia. The waiver, if granted,
does not exempt the applicant from an examination pertaining to
the laws of this state for each kinds of insurance for which
application is made.
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) 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) 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) or the education provisions of subdivision (f) of
this section.
§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 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, 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 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
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
hours of continuing insurance education biennially. 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:
(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. 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 he or she has demonstrated such time as 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) 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. The commissioner
shall notify the person 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 section twenty-nine of this article. Any person who
has had a suspension order entered against him or her pursuant to
this section may, within thirty calender days of receipt of the
order, file with the commissioner a request for a hearing for
reconsideration of the matter.
(h) Any person 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 two of this article.
(h) (i) 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.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.