Sec. 1204c.
(1) As used in this section:
(a) "Hour" means a period of time of not less than 50 minutes.
(b) "Insurance producer" means a life-health agent or property-casualty agent.
(c) "Life-health agent" means a resident or nonresident individual insurance producer licensed for life, limited life, mortgage redemption, accident and health, or any combination thereof.
(d) "Property-casualty agent" means a resident or nonresident individual insurance producer or solicitor licensed for automobile, fire, multiple lines, any limited or minor property and casualty line, or any combination thereof.
(2) An insurance producer's hours of study accrued under this section shall be reviewed for license continuance every 2 years under a schedule established by the commissioner. The commissioner may establish a schedule for license continuation that staggers license continuation dates to apportion the continuation dates throughout the calendar year. If the system of staggered continuation is adopted, the commissioner may extend the licensure period for some licensees.
(3) Except as provided in subsections (10) to (13), before the review date of each applicable 2-year period provided for under subsection (2), an insurance producer wishing to renew his or her license shall renew his or her license by attending or instructing not less than 24 hours of continuing education classes approved by the commissioner or 24 hours of home study or online training if evidenced by successful completion of course work approved by the commissioner. Of the 24 hours of continuing education required, not less than 3 hours shall be in ethics in insurance classes or course work.
(4) After reviewing recommendations made by the council under section 1204b, the commissioner shall approve a program of study if the commissioner determines that the program increases knowledge of insurance and related subjects as follows:
(a) For a life-health agent program of study, the program offers instruction in 1 or more of the following:
(i) The fundamental considerations and major principles of life insurance.
(ii) The fundamental considerations and major principles of health insurance.
(iii) Estate planning and taxation as related to insurance.
(iv) Industry and legal standards concerning ethics in insurance.
(v) Legal, legislative, and regulatory matters concerning insurance, the insurance code, and the insurance industry.
(vi) Principal provisions used in life insurance contracts, health insurance contracts, or annuity contracts and differences in types of coverages.
(vii) Accounting and actuarial considerations in insurance.
(viii) Principles of agency management, excluding telemarketing or other marketing instruction.
(ix) The fundamental considerations, major principles, and statutory requirements of long-term care insurance.
(b) For a property-casualty agent program of study, the program offers instructions in 1 or more of the following:
(i) The fundamental considerations and major principles of property insurance.
(ii) The fundamental considerations and major principles of casualty insurance.
(iii) Basic principles of risk management.
(iv) Industry and legal standards concerning ethics in insurance.
(v) Legal, legislative, and regulatory matters concerning insurance, the insurance code, and the insurance industry.
(vi) Principal provisions used in casualty insurance contracts, no-fault insurance contracts, or property insurance contracts and differences in types of coverages.
(vii) Accounting and actuarial considerations in insurance.
(viii) Principles of agency management, excluding telemarketing or other marketing instruction.
(5) A provider of a program of study for insurance producers applying for approval or reapproval from the commissioner under this section shall file, on a form provided by the commissioner, a description of the course of study including a description of the subject matter and course materials, hours of instruction, location of classroom, qualifications of instructors, and maximum student-instructor ratio and shall pay a nonrefundable $25.00 filing fee. Any material change in a program of study shall require reapproval by the commissioner. If the information in an application for approval or reapproval is insufficient for the commissioner to determine whether the program of study meets the requirements under subsection (4), the commissioner shall give written notice to the provider, within 15 days after the provider's filing of the application for approval or reapproval, of the additional information needed by the commissioner. An application for approval or reapproval shall be considered approved unless disapproved by the commissioner within 90 days after the application for approval or reapproval is filed, or within 90 days after the receipt of additional information if the information was requested by the commissioner, whichever is later.
(6) A provider of a program of study approved by the commissioner under this section shall pay a provider authorization fee of $500.00 for the first year the provider's program of study was approved under this section and a $100.00 provider renewal fee for each year thereafter that the provider offers the approved program of study.
(7) A person dissatisfied with an approved program of study may petition the commissioner for a hearing on the program or the commissioner on his or her own initiative may request a hearing on a program of study. If the commissioner finds the petition to have been submitted in good faith, that the petition if true shows the program of study does not satisfy the criteria in subsection (4), or that the petition otherwise justifies holding a hearing, the commissioner shall hold a hearing pursuant to chapter 4 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.271 to 24.287, within 30 days after receipt of the petition and upon not less than 10 days' written notice to the petitioner and the provider of the program of study. If the commissioner requests a hearing on a program of study on his or her own initiative, the commissioner shall hold a hearing pursuant to chapter 4 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.271 to 24.287, upon not less than 10 days' written notice to the provider of the program of study.
(8) If after a hearing under subsection (7) the commissioner finds that the program of study does not satisfy the requirements under subsection (4), the commissioner shall state, in a written order mailed first-class to the petitioner and provider of the program of study, his or her findings and the date upon which the commissioner will revoke approval of the program of study which date shall be within a reasonable time of the issuance of the order.
(9) A certificate of attendance or instruction of an approved program of study or a certificate of successful completion of course work shall be filed as directed by the commissioner on a form prescribed by the commissioner and shall indicate the name and number of the course of study, the number of hours, dates of completion, and the name and number of schools attended or taught by the insurance producer or the evidence of successful completion of course work. A representative of the approved program of study shall file the form and a fee of $1.00 per hour for course credit for each insurance producer license renewal as directed by the commissioner within 30 days after the insurance producer completes the program. A copy of the form shall also be mailed first-class to the insurance producer who attended, taught, or successfully completed the program of study. The commissioner may enter into contracts to provide for the administrative functions of this subsection.
(10) The commissioner shall waive the continuing education requirements of this section for an insurance producer if the producer is unable to comply with the continuing education requirements of this section due to military service or if the commissioner determines that enforcement of the requirements would cause a severe hardship. The commissioner shall waive the continuing education requirements of this section for the following insurance producers:
(a) An insurance producer who is licensed to write only travel or baggage insurance policies and whose employment is for a purpose other than the sale of those policies.
(b) An insurance producer who is licensed to write only limited line credit insurance.
(11) The commissioner may enter into reciprocal continuing education agreements with insurance commissioners from other states.
(12) If an insurance producer has not met his or her continuing education requirements by the expiration date of his or her license, the insurance producer shall have a 90-day grace period in which to meet the continuing education requirements of this section. During the 90-day grace period, the insurance producer shall not solicit or sell new policies of insurance, bind coverage, or otherwise act as an insurance producer except that the insurance producer may continue to service policies previously sold and may receive commissions on policies previously sold. If the insurance producer has not met his or her continuing education requirements by the expiration of the 90-day grace period, the insurance producer's license shall be canceled. An insurance producer whose license has been canceled under this section may reapply for license to act as an insurance producer under section 1204, except that the program of study requirements under section 1204 shall not be waived.
(13) An insurance producer who has sold his or her insurance business and who has not met the continuing education requirements of this section shall not solicit or sell new policies of insurance, bind coverage, or otherwise act as an insurance producer except that the insurance producer may continue to service policies previously sold and may receive commissions on policies previously sold as well as receive partial commissions on policies of insurance sold by a purchasing insurance producer. An insurance producer who is in the process of selling his or her insurance business and who has not met the continuing education requirements of this section shall not solicit or sell new policies of insurance, bind coverage, or otherwise act as an insurance producer except that the insurance producer may continue to service policies previously sold and may receive commissions on policies previously sold as well as receive partial commissions on policies of insurance sold by a purchasing insurance producer, for a period not to exceed 12 months after the selling insurance producer's license review date under subsection (2). An insurance producer whose license has been canceled and who wishes to resume soliciting or selling new policies of insurance, bind coverage, or otherwise act as an insurance producer and who has not met the continuing education requirements within the immediately preceding 2-year period may reapply for license to act as an insurance producer under section 1204.
History: Add. 1992, Act 1, Eff. Jan. 1, 1993 ;-- Am. 1992, Act 84, Eff. Jan. 1, 1993 ;-- Am. 1994, Act 48, Imd. Eff. Mar. 25, 1994 ;-- Am. 1996, Act 466, Eff. Mar. 31, 1997 ;-- Am. 1998, Act 540, Imd. Eff. Jan. 20, 1999 ;-- Am. 2001, Act 228, Eff. Mar. 1, 2002 ;-- Am. 2005, Act 247, Eff. Feb. 1, 2006 ;-- Am. 2006, Act 109, Imd. Eff. Apr. 7, 2006 ;-- Am. 2006, Act 442, Imd. Eff. Oct. 19, 2006 ;-- Am. 2008, Act 574, Eff. Jan. 1, 2010
Popular Name: Act 218
Last modified: October 10, 2016