AZ Circular Letter 1999-02: Administration of Continuing Education Laws; Arizona Revised Statutes, Title 20, Chapters 18 and 19

STATE OF ARIZONA DEPARTMENT OF INSURANCE JANE DEE HULL 2910 NORTH 44th STREET, SUITE 210 CHARLES R. COHEN Governor PHOENIX, ARIZONA 85018-7256 Director of Insurance (602) 912-8456 (Phone) (602) 912-8452 (FAX) CIRCULAR LETTER 1999-2 To: Arizona Resident Insurance Licensees From: Charles R. Cohen, Director of Insurance Date: April 30, 1999 Re: Administration of Continuing Education Laws; Arizona Revised Statutes, Title 20, Chapters 18 and 19 Arizona Revised Statutes, Title 20, Chapters 18 and 19 establish continuing education (CE) requirements for certain agents, bail bond agents, brokers, surplus lines brokers, managing general agents, solicitors and service representatives. Licensees must evidence completion of their CE requirement as part of the license renewal process. The first group of licensees required to evidence completion of the CE requirement will have licenses expiring July 31, 1999. The following licensees are excluded from the CE requirement: • A resident licensee, other than a bail bond agent, who does not hold a nonresident license in another state. All bail bond agents are required to fulfill the CE requirement. • A nonresident licensee whose home state does not have a CE requirement. • A nonresident licensee who completed CE requirements in a home state and whose home state will, when considering applications from Arizona residents, accept Arizona’s CE requirement in lieu of their own CE requirement. The states that have agreed to reciprocate in this fashion are identified on the Licensing Section Internet Website (www.state.az.us/id/licensing/licensing.htm) or from a recording on the Insurance Licensing Hotline (602-912-8470). • Individuals who upon renewal of their insurance license will have been licensed in Arizona for less than one year. Licensees subject to the CE requirement must, during their license term, complete between 20 and 50 hours of approved courses offered by approved providers, as follows: continued on the reverse continued from the reverse • Individuals licensed with only one of the following lines of authority must complete 20 hours of CE. Lines of authority are: • Life • Disability • Life and Disability (considered one line of authority) • Property and Casualty • Individuals licensed with more than one line of authority must complete 30 hours of CE. • Individuals licensed as bail bond agents must complete 20 hours of bail bond education in addition to any other CE requirements. For example, a bail bond agent also licensed as a life and disability agent would need to complete 40 hours of CE, 20 for the bail bond agent license and 20 for the life and disability agent license. Upon completing each course, a licensee will receive a Certificate of Completion. Originals of all Certificates must be submitted to the Department with the licensee’s renewal application as evidence of fulfilling the CE requirement. Licensee’s are required to retain copies of the Certificates of Completion in their records until the second renewal date after the period for which the CE credits were earned. A licensee who took CE courses during the license term that were not approved by Arizona’s CE Administrator may earn credit if the course providers and courses are subsequently approved by the CE Administrator. Licensees who have already taken courses they believe should qualify for CE credit should encourage the course providers to submit provider and course applications to Experior Assessments, Inc. (formerly Insurance Testing Corporation), the CE Administrator. If the providers and courses are approved, the providers will be able to issue Certificates of Completion for the courses the licensee previously completed. If a licensee takes more than the required number of credit hours, the excess cannot be carried into the next license period. If a licensee fails to complete the required number of credit hours before the license expires, the license will expire and the agent will be prohibited from transacting insurance in Arizona. Within six months after the license expires, the licensee can renew the license by completing the required number of CE credit hours, submitting an application and paying a $100 late fee. Experior has the responsibility for reviewing and approving applications from prospective course providers and approving the courses to be offered. To obtain a list of available courses, call Experior’s fax back system (800-899-4184) or visit their Internet Website (www.i-t-c.com). For answers to questions concerning CE requirements, consult the Licensing Section Website (www.state.az.us/id/licensing/licensing.htm) or call the Insurance Licensing Hotline (602-912-8470).