HB 125

Sponsor
Session
Regular Session 2018
Title
Insurance Dept, licensure of producers and service representatives, continuing education for renewals, civil penalties, provisions for extension deleted, Secs. 27-8A-1, 27-8A-2 am'd.
Description

Under existing law, the Department of Insurance licenses insurance producers and service representatives who are required to complete 24 hours of continuing education in connection with the biennial renewal of license, but are permitted to request an extension and renew when complying with the continuing education requirements

Existing law also authorizes a waiver of penalties for failure to renew

Also under existing law, the only punishment authorized to be imposed by the Insurance Commissioner against an insurance producer or service representative failing to complete the continuing education requirements is the suspension of a license

This bill would specify that insurance producers and service representatives would be required to complete any continuing education requirement in order to renew an insurance producer or service representative license and would delete the provisions for extensions to complete continuing education requirements as provided in this part of the licensure law

This bill would also authorize the Insurance Commissioner to assess a fine in lieu of suspension of license for violating the continuing education requirements by an insurance producer or service representative

Relating to insurance; to amend Sections 27-8A-1 and 27-8A-2 of the Code of Alabama 1975, relating to the licensing of insurance producers and service representatives by the Department of Insurance; to specify that insurance producers and service representatives are required to complete any continuing education requirements prior to renewing a license; to delete the provisions for extensions; and to authorize the Insurance Commissioner to assess a fine in lieu of suspension of a license for violation of the continuing education requirements.

Subjects
Insurance Department
View Original PDF: HB 125 - Introduced - PDF

Under existing law, the Department of Insurance licenses insurance producers and service representatives who are required to complete 24 hours of continuing education in connection with the biennial renewal of license, but are permitted to request an extension and renew when complying with the continuing education requirements

Existing law also authorizes a waiver of penalties for failure to renew

Also under existing law, the only punishment authorized to be imposed by the Insurance Commissioner against an insurance producer or service representative failing to complete the continuing education requirements is the suspension of a license

This bill would specify that insurance producers and service representatives would be required to complete any continuing education requirement in order to renew an insurance producer or service representative license and would delete the provisions for extensions to complete continuing education requirements as provided in this part of the licensure law

This bill would also authorize the Insurance Commissioner to assess a fine in lieu of suspension of license for violating the continuing education requirements by an insurance producer or service representative

Relating to insurance; to amend Sections 27-8A-1 and 27-8A-2 of the Code of Alabama 1975, relating to the licensing of insurance producers and service representatives by the Department of Insurance; to specify that insurance producers and service representatives are required to complete any continuing education requirements prior to renewing a license; to delete the provisions for extensions; and to authorize the Insurance Commissioner to assess a fine in lieu of suspension of a license for violation of the continuing education requirements.

Section 1

Sections 27-8A-1 and 27-8A-2, Code of Alabama 1975, are amended to read as follows:

§27-8A-1.

(a) Any individual licensed in this state as an insurance producer or service representative for the lines of insurance listed in subsection (b), and not exempt under subsection (c), shall satisfactorily complete a minimum of 24 classroom hours biennially of courses, programs of instruction, or seminars as may be approved by the commissioner pursuant to this chapter, three hours of which shall be on the topic of insurance producer ethics, reported to the commissioner on a biennial basis in conjunction with the license renewal cycle. No person holding licenses licensed for more than one line or type of insurance authority shall be required to complete a greater number of classroom hours than is required of a person holding a license for a single line or type of insurance authority.

(b) This chapter shall apply to all individuals licensed in this state as insurance producers and service representatives for the following kinds of insurance:

(1) The life lines of authority.

(2) The property lines of authority.

(3) All other lines of insurance for which an examination is required for licensing.

(4) Any combination thereof.

(c) The continuing education requirements of this chapter shall not apply to:

(1) Any person exempt from licensing pursuant to subsection (b) of Section 27-3-27.

(2) Any person licensed only for any kind or kinds of insurance for which an examination is not required by law of this state.

(3) Any person licensed only for limited lines insurance.

(4) Newly licensed producers and service representatives for 12 months following the effective date of their license.

(d) In lieu of the 24 hours required in subsection (a), any producer or service representative employed by another producer or by an insurer to work only in the office of the employer and who is not licensed as a nonresident in any other state shall satisfactorily complete a minimum of 12 classroom hours biennially, two hours of which shall be on the topic of insurance producer ethics.

(e) Any individual exempt from the requirements of this section immediately prior to January 1, 2013, shall continue to be exempt from the requirements of this section after the effective date of this amendatory act, for so January 1, 2013, as long as the individual remains exempt as set forth in this section as it existed immediately prior to January 1, 2013, unless the license is permitted to expire or is otherwise terminated and remains out of effect for a period of 12 consecutive months, in which case the exemption shall no longer be applicable.

§27-8A-2.

(a) Any person failing to meet the requirements imposed by this chapter, and who has not been granted an extension of time pursuant to this chapter, 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, may be subjected subject to the suspension of all licenses issued for any kind or kinds of insurance or to a civil fine as further provided in this section, and no further license shall be issued to the person for any kind or kinds of insurance until the person shall have has demonstrated to the satisfaction of the commissioner that he or she has complied with all of the requirements of the chapter and all other laws applicable thereto. In lieu of suspension of a license and in the sole discretion of the commissioner, a licensee may be subject to a civil fine in an amount not to exceed ten thousand dollars ($10,000) after a hearing, which may be waived by the licensee.

(b) The commissioner may grant a three-month extension for complying with the continuing education requirement under this chapter. To receive an extension under this subsection, a licensee shall file a request with the commissioner on a form provided by the commissioner. After a licensee files a request for an extension, the license of the licensee remains in effect until the commissioner makes a decision on the request. If the commissioner denies a licensee's request for an extension, the licensee shall complete continuing education requirements under this chapter within thirty days after the commissioner notifies the licensee of the denial.

(c) The commissioner may grant an extension for more than three months upon a showing that the licensee is unable to perform the normal duties of an insurance producer or upon other similar special circumstances as may be approved by the commissioner."

Section 2

This act shall become effective January 1, 2019, upon its passage and approval by the Governor or its otherwise becoming law.

No articles found.
Action Date Chamber Action
March 6, 2018HEngrossed
March 6, 2018HAssigned Act No. 2018-196.
March 6, 2018HForwarded to Governor on March 6, 2018 at 5:40 p.m. on March 6, 2018.
March 6, 2018HClerk of the House Certification
March 6, 2018HEnrolled
March 6, 2018SSignature Requested
March 6, 2018HPassed Second House
March 6, 2018SMotion to Read a Third Time and Pass adopted Roll Call 620
March 6, 2018SThird Reading Passed
February 20, 2018SRead for the second time and placed on the calendar
February 8, 2018HEngrossed
February 8, 2018SRead for the first time and referred to the Senate committee on Banking and Insurance
February 8, 2018HMotion to Read a Third Time and Pass adopted Roll Call 269
February 8, 2018HMotion to Adopt adopted Roll Call 268
February 8, 2018HInsurance Amendment Offered
February 8, 2018HThird Reading Passed
February 1, 2018HRead for the second time and placed on the calendar 1 amendment
January 9, 2018HRead for the first time and referred to the House of Representatives committee on Insurance
2018-03-06
Chamber: Senate
Result: Passed
2018-02-08
Chamber: House
Result: Passed
2018-02-08
Chamber: House
Result: Passed