Pre-Licensing Course (40 Hour)

DATE: May 10, 2002 RE: Pre-Licensing Course (40 Hour) TO: All Forty-Hour Providers The Department of Insurance (the Department) has been made aware that some of our authorized providers offering the pre-licensing course are not complying with the Code of Alabama, 1975, Section 27-7-5. Pursuant to 27-7-5(3): an individual must complete a pre-licensing course of study consisting of 40 classroom hours or equivalent individual instruction on the general principles of insurance, the course to be taught only by those educational institutions, junior or senior colleges, technical colleges, trade schools, insurance companies, or insurance trade organizations which hold written authority from the commissioner to issue certificates of completion. We are receiving complaints that the following abuses are occurring: Students are receiving written materials for home study (overnight course lessons); Students are encouraged not to purchase the required textbook(s); Students are not being instructed on insurance and ethics but on how to pass the exam; and Unstructured classes, unorganized curriculums. From the cited abuses, "the equivalent individual instruction" language of the statute is being misused. The above practices do not constitute equivalent individual instruction. While the Department is not mandating forty actual hours of classroom instruction and the law does not require such, there must be meaningful education and instruction given to applicants. The Department will not tolerate abuse by providers, producers and/or applicants, as such activity will subject those to disciplinary actions, which include, but are not limited to, suspension and/or revocation of license and penalties. Furthermore, the Department expects anyone aware of the above practices to notify us immediately. Therefore, this bulletin serves as notice that the Department expresses concern regarding the above practices and urges all providers to conform to the full extent of the law in qualifying applicants for licensure. ALL PROVIDERS ARE DIRECTED TO SUPPLY A COPY OF THIS BULLETIN TO EACH OF THEIR PRODUCERS LICENSED IN THE STATE OF ALABAMA.