Pre-licensure Education and Continuing Education

STATE OF NEBRASKA DEPARTMENT OF INSURANCE Ann M. Frohman Director 941 O Street • Suite 400 • Lincoln, Nebraska 68508-3639 • Phone (402) 471-2201 • Facsimile (402) 471-4610 http://www.doi.ne.gov An Equal Opportunity/Affirmative Action Employer Dave Heineman Governor January 21, 2010 CB-82 (Amended) BULLETIN SUBJECT: PRE-LICENSURE EDUCATION AND CONTINUING EDUCATION Legislative Bill 855 was enacted by the One Hundredth Legislature, Second Session, 2008. This notice explains the major changes impacting the requirements for the pre-licensing education and continuing education of insurance producers and/or consultants. LB 855 was effective July 18, 2008. The following changes are currently in effect. Pre-Licensure Education Effective July 18, 2008, persons must complete pre-licensing education requirements prior to application for an insurance producer’s and/or consultant’s license as follows: • Life Insurance: Completion of at least 6 hours of education on insurance industry ethics in addition to 14 hours of education in the area of life insurance. • Accident and Health or Sickness Insurance: Completion of at least 6 hours of education on insurance industry ethics in addition to 14 hours of education in the area of accident and health or sickness insurance. • Property Insurance: Completion of at least 6 hours of education on insurance industry ethics in addition to 14 hours of education in the area of property insurance. • Casualty Insurance: Completion of at least 6 hours of education on insurance industry ethics in addition to 14 hours of education in the area of casualty insurance. • Personal Lines Property and Casualty Insurance: Completion of at least 6 hours of education on insurance industry ethics in addition to 14 hours of education in the area of personal lines property and casualty insurance. 1 of 4 WITHDRAWN CB-82 (Amended) January 21, 2010 • Title Insurance: Completion of at least 6 hours of education on insurance industry ethics in addition to 6 hours of education in the area of title insurance. • Crop Insurance: Completion of at least 3 hours of education on insurance industry ethics in addition to 3 hours of education in the area of title insurance. The prelicensing education requirements shall not apply to an individual who, at the time of application for an insurance producer license, is applying for qualification for the life insurance line of authority and has: • the certified employee benefit specialist designation (CEBS); • the chartered financial consultant designation (ChFC); • the certified insurance counselor designation (CIC); • the certified financial planner designation (CFP); • the chartered life underwriter designation (CLU); • the fellow life management institute designation (FLMI); or • the Life Underwriting Training Council fellow designation (LUTCF). The prelicensing education requirements shall not apply to an individual who, at the time of application for an insurance producer license, is applying for qualification for the accident and health or sickness line of authority and has: • the registered health underwriter designation (RHU); • the certified employee benefit specialist designation (CEBS); • the registered employee benefit consultant designation (REBC); or • the health insurance associate designation (HIA). The prelicensing education requirements shall not apply to an individual who, at the time of application for an insurance producer license, is applying for qualification for the property insurance, casualty insurance, or personal lines property and casualty insurance line of authority and has: • the accredited advisor in insurance designation (AAI); • the associate in risk management designation (ARM); • the certified insurance counselor designation (CIC); or • the chartered property and casualty underwriter designation (CPCU). The prelicensing education requirements shall not apply to an individual who, at the time of application for an insurance producer license: • has a college degree with a concentration in insurance from an accredited education institution; • is an individual described in Neb.Rev.Stat. §§44-4056 or 44-4058; or • holds such limited or restricted licenses as follows: Credit, Motor Club, Pre- Paid Legal, Surety, Travel, or Variable. 2 of 4 WITHDRAWN CB-82 (Amended) January 21, 2010 Persons completing the pre-licensure education requirements shall have up to one year from the date of completion to take the written examination. For further clarification of these standards, please refer to Neb.Rev.Stat. §§44-3909 to 3913 and 210 Neb. Admin. R. & Reg. 67. Continuing Education Guidelines For purposes of the determination of the number of continuing education activities to be performed by a licensee under the recently adopted guidelines, the term “twoyear period” shall mean the period commencing on the date of licensing and ending on the date of expiration of the licensee’s first license effective for not less than two years and each succeeding 24-month period. For those two-year periods commencing before January 1, 2010: • Licensees qualified to solicit property and casualty insurance must complete 21 hours of approved continuing education activities in each twoyear period commencing before January 1, 2010. • Licensees qualified to solicit life, accident and health or sickness, property, casualty, or personal lines property and casualty insurance must complete 6 hours of approved continuing education activities for each line of insurance, including each miscellaneous line, in which he or she is licensed in each two-year period commencing before January 1, 2010. • In each two-year period, licensees must also complete 3 hours of approved continuing education activities on insurance industry ethics in addition to other required activities. For those two-year periods commencing on or after January 1, 2010: • Licensees qualified to solicit life, accident and health or sickness, property, casualty, or personal lines property and casualty insurance must complete 21 hours of approved continuing education activities in each two-year period commencing on or after January 1, 2010. • In each two-year period, licensees must also complete 3 hours of approved continuing education activities on insurance industry ethics in addition to other required activities. 3 of 4 WITHDRAWN CB-82 (Amended) January 21, 2010 Other Lines of Insurance • Licensees qualified to solicit ONLY crop insurance must complete 3 hours of approved continuing education activities in each two-year period. • Licensees qualified to solicit any lines of insurance other than those previously mentioned must complete 6 hours of approved continuing education activities in each two-year period for each line, including miscellaneous lines in which he or she is licensed. • Variable Life and Variable Annuity products shall NOT trigger additional continuing education requirements. General Guidelines • Licensees who are NOT insurance producers must complete 21 hours of approved continuing education activities in each two-year period. • A licensee will not be allowed to repeat a continuing education activity for credit within a two-year period. • No licensee will be required to complete more than 24 cumulative hours in any two-year period. • In each two-year period, every licensee must show the Department that he or she completed the required hours of approved continuing education activities for each line of insurance in which he or she is licensed as a resident insurance producer. For further clarification of these standards, please refer to Neb.Rev.Stat. §§44-3901 to 3908 and 210 Neb. Admin. R & Reg. 38. Ann M. Frohman Director 4 of 4 WITHDRAWN