A N A C T
RELATING TO INSURANCE
It is enacted by the General Assembly as follows:
SECTION 1. Sections 27-3.1-1, 27-3.1-2, 27-3.1-3, 27-3.1-4, 27-3.1-5, 27-3.1-6, 27-3.1-7, 27-3.1-8, 27-3.1-9 and 27-3.1-10 of the General Laws in Chapter 27-3.1 entitled "Mandatory Prelicensing Education Requirements for Life and Health Insurance Producers" are hereby amended to read as follows:
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 RI General Laws chapter 27-2.3.
27-3.1-2. Course definition -- Advisory board. -- (a) A life insurance and 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 health and accident and health insurance; and
(3) Six (6) hours in relevant state laws in accordance with the life insurance or accident and and health insurance producer's qualification course outline approved by the insurance commissioner and the life insurance and 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 RI CLU society, two (2) representatives of the RI state association of life underwriters, and one representative of the RI 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 and 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 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 and 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 shall make schedules of examinations available to the insurance commissioner in a reasonable time upon request.
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, variable annuities, or accident and health insurance, and relevant state law instruction book in compliance with RI General Laws section 27-3.1-3 and chapter 27-2.3;
(2) Current insurance policies and related forms pertaining to the area of instruction; and
(3) The life insurance or and accident and health insurance producer's qualification course outline in compliance with section 27-3.1-3 and chapter 27-2.3.
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, annuities insurance or, and 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 to the insurance commissioner or the advisory board upon request.
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 agents producer's qualification classroom course. The advisory board shall make the class schedule available to the insurance commissioner in a reasonable time upon request. 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 and health insurance producer's qualification classroom course.
(b) The certificate of completion shall contain the student's full name, residential address, and social security number, 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 which 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. However, 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, annuities 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 and life insurance (A & H) prior to September 1, 1985 shall be exempt.
(d) All applicants for insurance licenses other than life insurance and life insurance (A & H) shall be exempt from this chapter.
(e) All applicants for variable annuity, life insurance, or accident and health and life insurance (A & H) 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 variable annuity, life insurance, or accident and health and life insurance (A & H) 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 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. Title 27 of the General Laws entitled "Insurance" is hereby amended by adding thereto the following chapter:
CHAPTER 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 R.I. general laws section 27-2.3.
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 (1) 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 shall make schedules of examinations available to the insurance commissioner in a reasonable time upon request.
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 R.I. general laws sections 27-3.1-3 and 27-2.3;
(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 R.I. general laws sections 27-3.1-3 and 27-2.3.
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 to the insurance commissioner or the advisory board upon request.
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 to the insurance commissioner in a reasonable time upon request. 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, and social security number, 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 commission at the time which 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. However, 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. This act shall take effect on January 1, 2002.