230-RICR-20-50-2. Continuing Education for Insurance Producers (version Adoption, 01/01/2007 to 09/01/2008)

State of Rhode Island and Providence Plantations DEPARTMENT OF BUSINESS REGULATION Division of Insurance 233 Richmond Street Providence, RI 02903 INSURANCE REGULATION 40 CONTINUING EDUCATION FOR INSURANCE PRODUCERS Table of Contents Section 1 Authority Section 2 Purpose Section 3 Definitions Section 4 Applicability Section 5 Exemptions Section 6 Educational Requirements Section 7 Approved Courses Section 8 Continuing Education Advisory Board Section 9 Compliance Section 10 Penalty Section 11 Fees Section 12 Collection of Continuing Education Course Data Section 12 Severability Section 13 Effective Date Section 1 Authority This Regulation is promulgated in accordance with R.I.G.L. §§ 27-3.2-1 et seq. and 42-14-17. Section 2 Purpose The purpose of this chapter is to establish requirements and standards for continuing education programs for individual resident insurance producers. Section 3 Definitions As used in this Regulation: A. “Department” shall mean Department of Business Regulation. B. "NAIC" shall mean National Association of Insurance Commissioners. Page 1 of 6 Reg. # 40 C. "License" shall mean a document issued by the Department authorizing a person to act as an insurance producer for the lines of authority specified in the document. The license itself does not create any authority, actual, apparent or inherent authority, in the holder to represent or commit an insurance carrier. D. "Resident" shall mean a person who either resides in Rhode Island or maintains an office in Rhode Island where the business of producing insurance is transacted and designates Rhode Island as the residence for purposes of licensure. E. “Reciprocal State” shall mean any state which grants nonresident insurance producer licenses to licensed Rhode Island insurance producers without the necessity of examination on the basis of the Rhode Island license. F. “Continuing Education Course Provider” or “Provider” shall mean any person or entity which seeks and receives approval from the Department to provide a continuing education course(s) for insurance producers pursuant to R.I.G. L. § 27- 3.2-1 et seq. Section 4 Applicability This Regulation applies to individual resident insurance producers licensed to engage in the sale of the following lines or class of insurance: 1. Life insurance; 2. Health & Accident and Sickness insurance; 3. Property insurance; 4. Casualty insurance and 5. All other lines of insurance for which an examination is required for licensing Section 5 Exemptions This chapter does not apply to: 1. Those residents holding licenses to sell any kind or kinds of insurance for which an examination is not required; 2. Persons holding a limited line credit insurance license or a license which is otherwise exempted by the Department; 3. Non-resident licensees who meet continuing education requirements established by the insurance department in their home state if the home state is reciprocal with the State of Rhode Island; or Page 2 of 6 Reg. # 40 4. Residents holding a license continuously without a lapse of licensure for twenty- five (25) years and who are age fifty-five (55) at the time of renewal or persons who had held a license for at least twenty (20) years and were at least sixty (60) years of age as of July 3, 2004. A. A lapse has occurred if the producers’ license expired and was not reinstated. B. A producer’s license may be reinstated if the producer submits an Application of License Reinstatement and pays the renewal fee within thirty (30) days of expiration. If the application is submitted more than thirty (30) days after expiration of the license the licensee must pay both the renewal fee and a reinstatement fee. If a license is reinstated it is not considered to have lapsed. Licenses cannot be reinstated more than one year after expiration. C. A producer who reinstates must complete continuing education in exactly the same manner as would have been required if the license was renewed prior to the expiration date. 5. Any exemption granted by the Department. Section 6 Educational Requirements Any person to which this Regulation applies shall, for each twenty four (24) month period beginning with the first renewal of the license, satisfactorily complete approved continuing education courses equivalent to a minimum of twenty four (24) accumulated credit hours with a minimum of five (5) hours in each line of authority for which the producer is licensed and a minimum of three (3) hours in ethics. Producers will not receive credit for a repeat of the same course within the two year renewal cycle. A person teaching any approved course of instruction or lecturing at any approved seminar shall qualify for the same number of classroom hours as would be granted to a person taking and successfully completing that course, seminar, or program. Section 7 Approved Courses The following are the categories of courses that are approved for continuing education credit: 1. Pre-approved Courses a. Any part of the life underwriter training council life course curriculum: twenty-five (25) hours; health course curriculum: twenty-five (25) hours; b. Any part of the American College Certified Life Underwriter (CLU) diploma curriculum: thirty (30) hours; Page 3 of 6 Reg. # 40 c. Any part of the Insurance Institute of America's program in general insurance: twenty-five (25) hours; d. Any part of the American Institute for Property and Liability Underwriter's Chartered Property Casualty Underwriter (CPCU) professional designation program: thirty (30) hours. e. Any part of the certified insurance counselor program: twenty-five (25) hours; f. Any insurance related course approved by the insurance commissioner taught by an accredited college or university, per credit hour granted: fifteen (15) hours; g. Any part of the accredited advisor in insurance program: twenty-five (25) hours; h. Any part of the registered health underwriter (RHU) designation program: thirty (30) hours; 2. Rhode Island approved courses Any course or program of instruction, seminar or correspondence course approved by the Director shall qualify for the number of hours assigned to it by the Director. Courses approved for Rhode Island shall be assigned a unique course number that is valid for a period of two (2) years. Providers are required to resubmit course material at least ninety (90) days prior to the expiration date of the course. Once the course is reviewed and approved, the provider shall be reassigned a new course number. 3. Courses approved in other states Any nationally recognized approved continuing education course, program of instruction, training seminar or correspondence course approved by a reciprocal state shall qualify for the same number of hours assigned to it by the reciprocal state as credit in Rhode Island as if it were approved by the Department. Section 8 Continuing Education Advisory Board The Department will be assisted in the review and approval process of Rhode Island courses by two continuing education advisory boards. The Life, Accident & Health and Sickness Board shall consist of up to six (6) persons considered by the Department to have sufficient experience in the effected lines of insurance as necessary to advise the Department on the approval of courses. Persons who are representatives of the Rhode Island Association of Insurance and Financial Advisors, the Independent Insurance Agents of Rhode Island and the Rhode Island Society of Financial Service Professionals are presumed to have such expertise. The Property & Casualty Board shall consist of up to six (6) persons considered by the Department to have sufficient experience in the effected lines of insurance as necessary to advise the Director on the approval of courses. Page 4 of 6 Reg. # 40 Persons who are representatives of the Independent Insurance Agents of Rhode Island, Rhode Island Association of Insurance and Financial Advisors and the Chartered Property and Casualty Underwriters are presumed to have such expertise. The board members shall be appointed by the Department and shall serve at his or her pleasure. Board Members shall serve indefinite terms unless and until removed by the Department or upon resignation. The Department shall be empowered to fill any unexpired term upon a vacancy. The Boards shall meet at least once a year and additionally as required. The Boards shall advise the Department on the plans and operations of the continuing education program for any person licensed pursuant to this title and not exempt pursuant to the Regulation. Section 9 Compliance 1. Any person licensed pursuant to this title and not exempt under section 5 of this Regulation shall comply with all of the terms and requirements of this chapter. 2. Up to twenty-four (24) excess continuing education credits accumulated during a biennial license cycle may be carried forward through the end of the next renewal period. 3. Residents are required to maintain copies of continuing education course certificates that are issued by the approved course provider. 3. The Department, for good cause shown, may grant an extension of time during which the requirements of this chapter may be completed. Unless the Department finds extraordinary circumstances that extension of time shall not exceed the period of one year. 4. Every person subject to the provisions of this chapter shall furnish, in a form satisfactory to the Department, written certification as to the courses, programs, or seminars of instruction taken and successfully completed by that person. The certification shall be executed by or on behalf of the sponsoring organization. Section 10 Penalty Any person failing to meet the requirements of this chapter and who has not been granted an extension of time within which to comply or who has submitted a false or fraudulent certificate of compliance, shall be subject to any or all of the penalties in R.I.G.L § 42-14-16. Such person will be given the opportunity to dispute the allegations and/or penalty pursuant to R.I.G.L. § 42-35-1 et seq. Section 11 Fees 1. All persons licensed pursuant to R.I.G.L. § 27-2.4-1 et seq. shall pay a fee of five dollars ($5.00) per annum along with continuing education compliance. 2. All Continuing Education Course Providers shall be charged a fee of $25.00 for the approval of each continuing education course submitted for approval. Page 5 of 6 Reg. # 40 Section 12 Collection of Continuing Education Course Data The Department may contract with non-governmental entities, including the NAIC or any affiliates or subsidiaries that the NAIC oversees, to perform any ministerial functions, including the collection of continuing education course data, related to licensing that the Department may deem appropriate. Section 13 Severability If any provision of this Regulation or the application thereof to any person or circumstances is held invalid or unconstitutional, the invalidity or unconstitutionality shall not affect other provisions or applications of this Regulation which can be given effect without the invalid or unconstitutional provision or application, and to this end the provisions of this Regulation are severable. Section 14 Effective Date This Regulation shall be effective as indicated below. EFFECTIVE DATE: January 1, 2007 Page 6 of 6 Reg. # 40