H. B. 4705
(By Delegates H. White, Dempsey, L. White,
Kominar, Cann and Romine)
[Introduced February 25, 2000; referred to the
Committee on Banking and Insurance then Government Organization.]
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, relating to continuing
education requirements for insurance agents.
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 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 prohibits 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; and
(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 two thousand one, 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 triennium 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 triennium which is on topics specific to health
maintenance organizations.
No program shall may be approved by the commissioner that
includes a requirement that any agent complete more than thirty
twenty-four hours of continuing insurance education biennially
triennially. No program shall may 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 triennially:
(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 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 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) 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 triennium 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.
(i) The commissioner is authorized to hire personnel and make
reasonable expenditures as deemed considered 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.