Insurance Producers’ Examination and Licensing Procedures and Standards

PURPOSE: This rule specifies application forms and fees for insurance producers and explains insurance producer licensing standards and procedures. (1) Application Forms. The following forms have been adopted and approved for filing with the department: (A) The Uniform Application for Individual Insurance Producer License form (Form UA-IP), adopted by the NAIC on May 10, 2006, or any form which substantially comports with the specified form; and (B) The Uniform Application for Business Entity Insurance Producer License form (Form UA-BEP), adopted by the NAIC on May 10, 2006, or any form which substantially comports with the specified form. (2) Application and Fees. Application for licensure as an individual insurance producer or business entity producer shall contain the information/requirements outlined in sections 375.015 to 375.018, RSMo and this rule and may be submitted by electronic means to the National Insurance Producer Registry (NIPR) or other system(s) as the director may designate. (A) Initial Licensure. 1. Resident Individual Insurance Producer. A. A completed Form UA-IP; and B. One hundred dollar ($100) application fee. 2. Nonresident Individual Insurance Producer. A. A completed Form UA-IP; and B. One hundred dollar ($100) application fee. 3. Resident Business Entity Insurance Producer. A. A completed Form UA-BEP; B. One hundred dollar ($100) application fee; C. List of Missouri-licensed producers conducting business on behalf of the business entity; and D. Domestic corporations, limited liability companies, or limited liability partnerships must include a certificate of good standing, certificate of incorporation, or certificate of organization issued by the secretary of state and dated within the past year. Partnerships must include a copy of the fictitious name registration as issued by the secretary of state. 4. Nonresident Business Entity Insurance Producer. A. A completed Form UA-BEP; B. One hundred dollar ($100) application fee; and C. List of Missouri-licensed producers conducting business on behalf of the business entity. 5. Organizational Credit Business Entity. A. A completed Form UA-BEP; B. One hundred dollar ($100) application fee; C. A list of employees to whom the business entity has paid, within the preceding twelve (12) months, any salary or commission for the sale, solicitation, or negotiation of credit insurance contracts; and D. An additional fee of eighteen dollars ($18) per employee with whom the business entity has contracted to pay any salary or commission for the sale, solicitation, or negotiation of credit insurance contracts following licensure. (B) Renewal Application. 1. Individual Producers. A. An updated Form UA-IP. If applying for renewal through NIPR, the application is deemed submitted at the time of fee payment pursuant to the producer’s continuing duty to amend the application in sections 375.018 and 375.141, RSMo; and B. One hundred dollar ($100) application fee. 2. Business Entity Producers. A. An updated Form UA-BEP. If applying for renewal through NIPR, the application is deemed submitted at the time of fee payment pursuant to the producer’s continuing duty to amend the application in sections 375.018 and 375.141, RSMo; B. One hundred dollar ($100) application fee; and C. List of Missouri-licensed producers conducting business on behalf of the business entity. 3. Organizational Credit Business Entity. A. An updated Form UA-BEP. If applying for renewal through NIPR, the application is deemed submitted at the time of fee payment pursuant to the producer’s continuing duty to amend the application in sections 375.018 and 375.141, RSMo; B. One hundred dollar ($100) application fee; C. An updated list of employees to whom the business entity has paid, within the preceding twelve (12) months, any salary or commission for the sale, solicitation, or negotiation of credit insurance contracts; and D. An additional fee of eighteen dollars ($18) per employee with whom the business entity has contracted to pay any salary or commission for the sale, solicitation, or negotiation of credit insurance contracts following licensure. (C) All fees must be paid by cashier’s check, money order, company check, or electronic funds transfer. Fees submitted with electronic applications shall be paid by electronic funds transfer, credit card, or other methods approved by any designee under this rule. (D) Application and/or renewal fees are not refundable if the application is refused by the director or withdrawn by the applicant. (3) Examination Procedures. (A) Before an individual may be licensed to sell certain lines of insurance, the applicant must first take and pass an examination testing both the individual’s knowledge regarding the line(s) of insurance the individual proposes to sell and the individual’s knowledge of the insurance statutes and regulations. The examination must be taken and passed prior to submitting an application for a license to the department. The lines of insurance for which an examination is required prior to licensure are life insurance, accident and health insurance, property insurance, casualty insurance, variable life insurance and variable annuities, personal lines insurance, crop insurance, title insurance, and prepaid legal services. (B) The department contracts with an independent testing service, which administers the examinations referred to in subsection (3)(A). In order to take an examination, an individual must register and pay the appropriate fee to the independent testing service designated by the department. Instructions may be obtained from the independent testing service or the department. (C) Once an individual has passed an ex - amination, the applicant has one (1) year from the date of the examination in which to submit an application for licensure to the department. Failure to submit an application within this time period will necessitate the individual taking and passing the examination again before the applicant may be licensed. (4) Other Lines of Insurance Authority. In addition to the lines of authority authorized by section 375.018, RSMo, producers may be granted licensure in the following lines of insurance pursuant to the authority granted in section 375.018.1(8), RSMo: (A) Title Insurance. Pursuant to section 381.115, RSMo and 20 CSR 700-8.100, title agents may be licensed as individual insurance producers and title agencies may be licensed as business entity producers. (B) Travel Insurance. An application for license to sell travel insurance shall comply with the requirements of section (2) of this rule. (C) Crop Insurance. An application for license to sell crop insurance pursuant to section 375.018.2, RSMo shall comply with the requirements of section (2) of this rule. (D) Prepaid Legal. An application for license to sell prepaid legal service plans pursuant to section 379.901, RSMo shall comply with the requirements of section (2) of this rule. (5) Individuals applying for a nonresident producer license who have not been licensed in their home state for the same line(s) of authority as applying for in this state shall take and pass the appropriate Missouri-specific examination(s), if applicable, for licensure in those lines before a license may be granted. AUTHORITY: section 374.045, RSMo 2000.* This rule was previously filed as 4 CSR 190-12.020. Original rule filed Aug. 5, 1974, effective Aug. 15, 1974. Amended: Filed Dec. 23, 1975, effective Jan. 2, 1976. Amended: Filed July 15, 1976, effective Dec. 20, 1976. Amended: Filed Oct. 14, 1977, effective March 13, 1978. Amended: Filed July 12, 1979, effective Nov. 15, 1979. Amended: Filed Oct. 14, 1981, effective Jan. 15, 1982. Amended: Filed Dec. 14, 1982, effective April 11, 1983. Emergency amendment filed May 30, 1985, effective June 10, 1985, expired Oct. 8, 1985. Amended: Filed Jan. 17, 1986, effective June 28, 1986. Amended: Filed July 5, 1988, effective Nov. 1, 1988. Amended: Filed Feb. 16, 1994, effective Aug. 28, 1994. Amended: Filed April 12, 1999, effective Nov. 30, 1999. Amended: Filed July 12, 2002, effective Feb. 28, 2003. Amended: Filed Sept. 15, 2005, effective March 30, 2006. Amended: Filed Nov. 30, 2007, effective July 30, 2008. *Original authority: 374.045, RSMo 1967, amended 1993, 1995. Op. Atty. Gen. No. 145, Scharz (9-15-66). A corporation may not be a licensed insurance agent. Therefore, an insurance company cannot pay agent a commission to a corporate insurance agency.