Chapter 04-040

2004 -- H 8165

Enacted 06/09/04

A N A C T

RELATING TO INSURANCE -- MANDATORY PRELICENSING EDUCATION

REQUIREMENTS

Introduced By: Representative Susan A. Story

Date Introduced: February 25, 2004

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 27-3.1 of the General Laws entitled "Mandatory Prelicensing

Education Requirements for Life and Health Insurance Producers" is hereby repealed in its

entirety:

CHAPTER 27-3.1

Mandatory Prelicensing Education Requirements for Life and Health Insurance Producers

27-3.1-1. Issuance of license. -- For the protection of the people of this state, the

insurance commissioner shall not issue any life insurance or accident and health insurance

producer license except in compliance with this chapter and chapter 2.4 of this title.

27-3.1-2. Course -- Definition -- Advisory board. -- (a) A life insurance or accident and

health insurance producer's qualification course shall consist of forty (40) hours of classroom

instruction including:

(1) Twenty-six (26) hours in life insurance and annuities or accident and health;

(2) Eight (8) hours in life insurance or accident and health insurance; and

(3) Six (6) hours in relevant state laws in accordance with the life insurance or accident

and health insurance producer's qualification course outline approved by the insurance

commissioner and the life insurance or accident and health insurance producer's qualification

course advisory board.

(b) The advisory board shall consist of the following five (5) members: two (2)

representatives of R.I. CLU Society, two (2) representatives of the R.I. State Association of Life

Underwriters, and one representative of the R.I. General Agents and Managers Association. All

representatives shall be appointed by their organization's board of directors.

27-3.1-3. Course approval. -- The life insurance or accident and health insurance

producer's qualification course outline must be provided, along with any pertinent information

and/or materials requested by the insurance commissioner or the advisory board, for approval of

the insurance commissioner and the advisory board prior to being offered and any change in the

course outline and/or course must be approved by the insurance commissioner and the advisory

board prior to being implemented.

27-3.1-4. School approval. -- A school that offers the life insurance or accident and

health insurance producer's qualification classroom course must be approved by the insurance

commissioner and operated by or for an insurance company, insurance company association, or

insurance agents association, or by another insurance trade association, a public school, or an

institution of higher learning. Accredited institutions of higher learning are exempt from this rule.

27-3.1-5. Examinations. -- A final examination covering the field of instruction shall be

given at the end of each life insurance or accident and health insurance producer's qualification

classroom course, unless a final examination is given at the end of each major area of instruction.

A schedule of examinations for each course shall be furnished to the advisory board prior to the

beginning of the course. The advisory board, upon request, shall make schedules of examinations

available to the insurance commissioner in a reasonable time.

27-3.1-6. Study aids. -- Each school shall, prior to the commencement of the life

insurance or accident and health insurance producer's qualification classroom course, furnish each

student with a copy of each of the following:

(1) The current edition of the life insurance or accident and health insurance, and

relevant state law instruction book in compliance with section 27-3.1-3 and chapter 2.4 of this

title;

(2) Current insurance policies and related forms pertaining to the area of instruction; and

(3) The life insurance or accident and health insurance producer's qualification course

outline in compliance with section 27-3.1-3 and chapter 2.4 of this title.

27-3.1-7. Qualifications of instructors. -- Instruction in life insurance or accident and

health insurance producer's qualification classroom courses shall be provided by instructors with

at least two (2) years of experience in the areas of life insurance or accident and health insurance,

or a degree from a four (4) year accredited institution of higher learning with major course work

in insurance. Documentation of the instructor's experience or education shall be maintained by

the employing company or school and made available, upon request, to the insurance

commissioner or the advisory board.

27-3.1-8. Class schedule. -- Each school shall furnish a class schedule, containing dates

and times classes meet, to the advisory board prior to the beginning of a life insurance or accident

and health producer's qualification classroom course. The advisory board, upon request, shall

make the class schedule available to the insurance commissioner in a reasonable time. A

representative of the insurance commissioner and/or a member of the advisory board is permitted

to visit the class at any time for the purpose of monitoring activity.

27-3.1-9. Certification of students. -- (a) A certificate of completion shall be issued to

each person satisfactorily completing the life insurance or accident and health insurance

producer's qualification classroom course.

(b) The certificate of completion shall contain the student's full name, residential

address, name of the course, beginning and ending date of the course, numerical score of grade,

name of the school, and signatures of the instructor and school official.

(c) The certificate of completion is required in order to sit for the state license

examination and the student shall be responsible for submitting the certificate of completion to

the insurance commissioner at the time that the state life insurance or accident and health

insurance producer's examination is taken.

27-3.1-10. Exemptions. -- (a) Approved courses in insurance offered by an accredited

institution of higher learning, approved by the insurance commissioner, for which college credit

is assigned, shall not be subject to this chapter. An individual satisfying the educational

requirements by completing courses of insurance offered by an accredited institution of higher

learning approved by the insurance commissioner, for which college credit is assigned, shall

have:

(1) A four (4) year degree from an accredited institution of higher learning with major

course work in insurance; or

(2) Completed three (3) semester hours of college credit, or its equivalent, in life

insurance or accident and health insurance, and relevant state law.

(b) Individuals holding CLU designations shall be exempt from this chapter with the

following stipulation: individuals holding CLU designations shall satisfactorily complete and be

issued a certificate of completion for the relevant state laws portion of the life insurance or

accident and health insurance producer's qualification course; self study is permitted and the state

law portion of the state life insurance or accident and health insurance producer's examination

must be taken and passed.

(c) All persons licensed for life insurance or accident and health insurance prior to

September 1, 1985 shall be exempt.

(d) All applicants for life insurance or accident and health insurance licensed for a period

not less than two (2) years in any other state shall be exempt from this chapter; provided, that the

other state shall accept the credentials and qualifications of a person licensed for life insurance or

accident and health insurance in this state and that the applicants shall satisfactorily complete and

be issued a certificate of completion for the relevant state laws portion of the life insurance or

accident and health insurance producer's qualification course; self study is permitted and the state

law portion of state life insurance or accident and health insurance producer's examination must

be taken and passed.

     SECTION 2. Chapter 27-3.3 of the General Laws entitled "Mandatory Prelicensing

Education Requirements for Property and Casualty Insurance Producers" is hereby repealed in its

entirety.

CHAPTER 27-3.3

Mandatory Prelicensing Education Requirements for Property and Casualty Insurance Producers

27-3.3-1. Issuance of license. -- For the protection of the people of this state, the

insurance commissioner shall not issue any property and casualty insurance producer license

except in compliance with this chapter and chapter 2.4 of this title.

27-3.3-2. Course definition -- Advisory board. -- (a) A property and casualty insurance

producer's qualification course shall consist of thirty-two (32) hours of classroom instruction

including:

(1) Twenty-six (26) hours in property and casualty insurance;

(2) Six (6) hours in relevant state laws in accordance with the property and casualty

insurance producer's qualification course outline approved by the insurance commissioner and the

property and casualty insurance producer's qualification course advisory board.

(b) The advisory board shall consist of the following three (3) members: one

representative of R.I. CPCU Society; and two (2) representatives of the Independent Insurance

Agents of Rhode Island. All representatives shall be appointed by their organization's board of

directors.

27-3.3-3. Course approval. -- The property and casualty insurance producer's

qualification course outline must be provided, along with any pertinent information and/or

materials requested by the insurance commissioner or the advisory board, for approval of the

insurance commissioner and the advisory board prior to being offered and any change in the

course outline and/or course must be approved by the insurance commissioner and the advisory

board prior to being implemented.

27-3.3-4. School approval. -- A school that offers the property and casualty insurance

producer's qualification classroom course must be approved by the insurance commissioner and

operated by or for an insurance company, insurance company association, or insurance agents

association, or by another insurance trade association, a public school, or an institution of higher

learning. Accredited institutions of higher learning are exempt from this rule.

27-3.3-5. Examinations. -- A final examination covering the field of instruction shall be

given at the end of each property and casualty insurance producer's qualification classroom

course, unless a final examination is given at the end of each major area of instruction. A

schedule of examinations for each course shall be furnished to the advisory board prior to the

beginning of the course. The advisory board, upon request, shall make schedules of examinations

available to the insurance commissioner in a reasonable time.

27-3.3-6. Study aids. -- Each school shall, prior to the commencement of the property

and casualty insurance producer's qualification classroom course, furnish each student with a

copy of each of the following:

(1) The current edition of the property and casualty insurance and relevant state law

instruction book in compliance with section 27-3.1-3 and chapter 2.4 of this title;

(2) Current insurance policies and related forms pertaining to the area of instruction; and

(3) The property and casualty insurance producer's qualification course outline in

compliance with section 27-3.1-3 and chapter 2.4 of this title.

27-3.3-7. Qualifications of instructors. -- Instruction in property and casualty insurance

producer's qualification classroom courses shall be provided by instructors with at least two (2)

years of experience in the areas of property and casualty insurance, or a degree from a four (4)

year accredited institution of higher learning with major course work in insurance.

Documentation of the instructor's experience or education shall be maintained by the employing

company or school and made available, upon request, to the insurance commissioner or the

advisory board.

27-3.3-8. Class schedule. -- Each school shall furnish a class schedule, containing dates

and times classes meet, to the advisory board prior to the beginning of a property and casualty

producer's qualification classroom course. The advisory board shall make the class schedule

available, upon request, to the insurance commissioner in a reasonable time. A representative of

the insurance commissioner and/or a member of the advisory board is permitted to visit the class

at any time for the purpose of monitoring activity.

27-3.3-9. Certification of students. -- (a) A certificate of completion shall be issued to

each person satisfactorily completing the property and casualty insurance producer's qualification

classroom course.

(b) The certificate of completion shall contain the student's full name, residential

address, name of the course, beginning and ending date of the course, numerical score of grade,

name of the school, and signatures of the instructor and school official.

(c) The certificate of completion is required in order to sit for the state license

examination and the student shall be responsible for submitting the certificate of completion to

the insurance commissioner at the time that the state property and casualty insurance producer's

examination is taken.

27-3.3-10. Exemptions. -- (a) Approved courses in insurance offered by an accredited

institution of higher learning, approved by the insurance commissioner, for which college credit

is assigned, shall not be subject to this chapter. An individual satisfying the educational

requirements by completing courses of insurance offered by an accredited institution of higher

learning approved by the insurance commissioner, for which college credit is assigned, shall

have:

(1) A four (4) year degree from an accredited institution of higher learning with major

course work in insurance; or

(2) Completed three (3) semester hours of college credit, or its equivalent, in property

and casualty insurance, and relevant state law.

(b) Individuals holding CPCU designations shall be exempt from this chapter with the

following stipulation: individuals holding CPCU designations shall satisfactorily complete and be

issued a certificate of completion for the relevant state laws portion of the property and casualty

insurance producer's qualification course; self-study is permitted and the state law portion of the

state property and casualty insurance producer's examination must be taken and passed.

(c) All persons licensed for property and casualty insurance prior to September 1, 1985

shall be exempt.

(d) All applicants for property and casualty insurance licensed for a period not less than

two (2) years in any other state shall be exempt from this chapter; provided, that the other state

shall accept the credentials and qualifications of a person licensed for property and casualty

insurance in this state and that the applicants shall satisfactorily complete and be issued a

certificate of completion for the relevant state laws portion of the property and casualty insurance

producer's qualification course; self-study is permitted and the state law portion of state property

and casualty insurance producer's examination must be taken and passed.

     SECTION 3. Section 27-2.4-21 of the General Laws in Chapter 27-2.4 entitled "Producer

Licensing Act" is hereby amended to read as follows:

27-2.4-21. Regulations. -- The insurance commissioner may, in accordance with Rhode

Island law, promulgate reasonable rules and regulations as are necessary or proper to carry out the

purposes of this chapter.,including, but not limited to, prelicensing requirements for applicants for

an insurance producer license.

     SECTION 4. This act shall take effect upon passage.

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LC02474

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