hb4479 enr

ENROLLED
H. B. 4479

(By Delegates Beane, Mahan,

Hutchins, H. White and Paxton)

[Passed March 8, 2000; in effect from passage.]

AN ACT to amend and reenact sections two and three, article twelve, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, all relating to authorizing the insurance commissioner to grant provisional licensure to an applicant for an insurance agent's license pending the applicant's appointment by a licensed insurer.

Be it enacted by the Legislature of West Virginia:

That sections two and three, 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 the firm or corporation, or on property or insurable interests for which the applicant or any 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 the 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 the examination subject to direction and approval by the commissioner, and examination fees charged by the 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 kind 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.

(g) The commissioner may issue a provisional license to any agent applicant meeting the qualifications set forth in section two of this article, but who has not been appointed as agent by a licensed insurer.

(1) Notwithstanding other provisions of the code to the contrary, an individual so licensed:

(A) May not solicit, negotiate, effect or countersign insurance contracts or otherwise transact insurance;

(B) Is not subject to the continuing education requirements set forth in section two-a of this article; and

(2) A provisional license may be upgraded to an agent's license upon the appointment of the applicant as agent by a licensed insurer subject to the same requirements for licensing of agents in general.

(3) The commissioner may suspend, revoke or refuse to upgrade a provisional license for any of the same causes and pursuant to the same procedures as are applicable to suspension or revocation of licenses of agents in general under article twelve of this chapter.

(4) There shall be no fee for a provisional license.
§33-12-3. Application.

(a) Application for an agent's, broker's or solicitor's license or renewal thereof shall be made to the commissioner upon a form prescribed by him or her and shall contain the applicant's name, social security number and the information and supporting documents as the commissioner may require, and the commissioner may require the application to be made under the applicant's oath.

(b) If for an agent's license, other than for a provisional license, the application shall show the kinds of insurance to be transacted, and shall be accompanied by the written appointment of the applicant as agent by at least one licensed insurer for each kind of insurance for which application is made.

(c) If for a solicitor's license, the application shall be accompanied by written appointment of the applicant as solicitor by a licensed agent.

(d) If for a broker's license, the application shall be accompanied by a statement upon a form prescribed by the commissioner as to the trustworthiness and competency of the applicant, signed by at least three licensed resident agents of this state.

(e) Willful misrepresentation of any fact in any application or any documents in support thereof is a violation of this chapter.