PRINTER'S NO. 2381
No. 1886 Session of 1987
INTRODUCED BY MAYERNIK, TRELLO, PETRONE, VEON AND COY,
OCTOBER 27, 1987
REFERRED TO COMMITTEE ON INSURANCE, OCTOBER 27, 1987
AN ACT
1 Amending the act of May 17, 1921 (P.L.789, No.285), entitled, as
2 amended, "An act relating to insurance; establishing an
3 insurance department; and amending, revising, and
4 consolidating the law relating to the licensing,
5 qualification, regulation, examination, suspension, and
6 dissolution of insurance companies, Lloyds associations,
7 reciprocal and inter-insurance exchanges, and certain
8 societies and orders, the examination and regulation of fire
9 insurance rating bureaus, and the licensing and regulation of
10 insurance agents and brokers; the service of legal process
11 upon foreign insurance companies, associations or exchanges;
12 providing penalties, and repealing existing laws," requiring
13 agents and brokers to undergo continuing education.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. The act of May 17, 1921 (P.L.789, No.285), known
17 as The Insurance Department Act of one thousand nine hundred and
18 twenty-one, is amended by adding sections to read:
19 Section 603.1. Continuing Education for Agents.--(a) Each
20 person licensed under the provisions of this act as an insurance
21 agent shall annually satisfactorily complete such courses or
22 programs of instruction as may be approved by the Insurance
23 Commissioner in the minimum number of classroom hours as
1 follows:
2 (1) Any individual agent holding a license issued subsequent
3 to the effective date of this section shall, during each of the
4 first four 12-month periods following the date of its original
5 issue satisfactorily complete courses or programs of instruction
6 or attend seminars equivalent to a minimum of 16 classroom hours
7 of instruction, with a maximum of 64 accumulated classroom hours
8 for the 48-month period.
9 (2) Any individual agent holding a license issued prior to
10 the effective date of this section, or who has complied with
11 clause (1), shall for each 12-month period satisfactorily
12 complete courses or programs of instruction or attend seminars
13 equivalent to 15 classroom hours of instruction.
14 (b) The courses or programs of instruction successfully
15 completed which shall be deemed to meet the Insurance
16 Commissioner's standards for continuing educational requirements
17 and the number of classroom hours for which they are equivalent
18 are as follows:
19 (1) Any part of the Life Underwriting Training Council Life
20 Course Curriculum - 50 hours; Health Course - 25 hours.
21 (2) Any part of the American College "CLU" diploma
22 curriculum - 30 hours.
23 (3) Any part of the Insurance Institute of America's program
24 in general insurance - 20 hours.
25 (4) Any part of the American Institute for Property and
26 Liability Underwriters' Chartered Property Casualty Underwriter
27 (CPCU) professional designation program - 30 hours.
28 (5) Any part of the Certified Insurance Counselor program -
29 20 hours.
30 (6) Any insurance related course approved by the Insurance
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1 Commissioner taught by an accredited college or university per
2 credit hour granted - 15 hours.
3 (7) Any course or program of instruction or seminar
4 developed or sponsored by any authorized insurer, recognized
5 agents association or insurance trade association or any
6 independent program of instruction, shall, subject to the
7 approval of the Insurance Commissioner, qualify for the
8 equivalency of the number of classroom hours assigned thereto by
9 the Insurance Commissioner.
10 (c) A person teaching any approved course of instruction or
11 lecturing at any approved seminar shall qualify for the same
12 number of classroom hours as would be granted to a person taking
13 and successfully completing such course, seminar or program.
14 (d) Any person previously licensed as an agent whose license
15 was not in effect on the effective date of this section shall
16 comply with all of the terms and requirements of subsection
17 (a)(1).
18 (e) Any person previously licensed as an agent whose license
19 was in effect on the effective date of this section, or who has
20 complied with subsection (a)(1), shall comply with all of the
21 terms and requirements of subsection (a)(2).
22 (f) Excess classroom hours accumulated during any one-year
23 period may be carried forward to the next year.
24 (g) For good cause shown, the Insurance Commissioner may
25 grant an extension of time during which the requirements imposed
26 by subsection (a) may be completed, but such extension of time
27 shall not exceed the period of one year.
28 (h) Every person subject to this section shall furnish, in a
29 form satisfactory to the Insurance Commissioner, written
30 certification as to the courses, programs or seminars of
19870H1886B2381 - 3 -
1 instruction which he has taken and successfully completed.
2 (i) Any individual insurance agent failing to meet the
3 requirements imposed upon him by this section and who has not
4 been granted an extension of time within which to comply
5 pursuant to subsection (g), or who has submitted to the
6 Insurance Commissioner a false or fraudulent certificate of
7 compliance therewith shall, after a hearing thereon which
8 hearing may be waived by such person, be subject to the
9 suspension of his agent's license, and no further agent's
10 license shall be issued to him until such time as he shall have
11 demonstrated to the satisfaction of the Insurance Commissioner
12 that he has complied with all of the requirements of this
13 section.
14 (j) The Insurance Commissioner may, in accordance with law,
15 promulgate such rules and regulations as may be necessary to
16 implement the requirement of continuing education for persons
17 licensed as insurance agents.
18 Section 622.1. Continuing education for brokers.--(a) Each
19 person licensed under the provisions of this act as an insurance
20 broker shall, annually satisfactorily complete such courses or
21 programs of instruction as may be approved by the Insurance
22 Commissioner in the minimum number of classroom hours as
23 follows:
24 (1) Any individual broker holding a license issued
25 subsequent to the effective date of this section shall, during
26 each of the first four 12-month periods following the date of
27 its original issue, satisfactorily complete courses or programs
28 of instruction or attend seminars equivalent to a minimum of 16
29 classroom hours of instruction, with a maximum of 64 accumulated
30 classroom hours for the 48-month period.
19870H1886B2381 - 4 -
1 (2) Any individual broker holding a license issued prior to
2 the effective date of this section, or who has complied with
3 clause (1), shall for each 12-month period satisfactorily
4 complete courses or programs of instruction or attend seminars
5 equivalent to 15 classroom hours of instruction.
6 (b) The courses or programs of instruction successfully
7 completed which shall be deemed to meet the Insurance
8 Commissioner's standards for continuing educational requirements
9 and the number of classroom hours for which they are equivalent
10 are as follows:
11 (1) Any part of the Life Underwriting Training Council Life
12 Course Curriculum - 50 hours; Health Course - 25 hours.
13 (2) Any part of the American College "CLU" diploma
14 curriculum - 30 hours.
15 (3) Any part of the Insurance Institute of America's program
16 in general insurance - 20 hours.
17 (4) Any part of the American Institute for Property and
18 Liability Underwriters' Chartered Property Casualty Underwriter
19 (CPCU) professional designation program - 30 hours.
20 (5) Any part of the Certified Insurance Counselor program -
21 20 hours.
22 (6) Any insurance related course approved by the Insurance
23 Commissioner taught by an accredited college or university per
24 credit hour granted - 15 hours.
25 (7) Any course or program of instruction or seminar
26 developed or sponsored by any authorized insurer, recognized
27 agents association or insurance trade association or any
28 independent program of instruction, shall, subject to the
29 approval of the Insurance Commissioner, qualify for the
30 equivalency of the number of classroom hours assigned thereto by
19870H1886B2381 - 5 -
1 the Insurance Commissioner.
2 (c) A person teaching any approved course of instruction or
3 lecturing at any approved seminar shall qualify for the same
4 number of classroom hours as would be granted to a person taking
5 and successfully completing such course, seminar or program.
6 (d) Any person previously licensed as a broker whose license
7 was not in effect on the effective date of this section shall
8 comply with all of the terms and requirements of subsection
9 (a)(1).
10 (e) Any person previously licensed as a broker whose license
11 was in effect on the effective date of this section, or who has
12 complied with subsection (a)(1), shall comply with all of the
13 terms and requirements of subsection (a)(2).
14 (f) Excess classroom hours accumulated during any one-year
15 period may be carried forward to the next year.
16 (g) For good cause shown, the Insurance Commissioner may
17 grant an extension of time during which the requirements imposed
18 by subsection (a) may be completed, but such extension of time
19 shall not exceed the period of one year.
20 (h) Every person subject to this section shall furnish, in a
21 form satisfactory to the Insurance Commissioner, written
22 certification as to the courses, programs or seminars of
23 instruction which he has taken and successfully completed.
24 (i) Any individual insurance agent failing to meet the
25 requirements imposed upon him by this section and who has not
26 been granted an extension of time within which to comply
27 pursuant to subsection (g), or who has submitted to the
28 Insurance Commissioner a false or fraudulent certificate of
29 compliance therewith shall, after a hearing thereon which
30 hearing may be waived by such person, be subject to the
19870H1886B2381 - 6 -
1 suspension of his broker's license, and no further broker's
2 license shall be issued to him until such time as he shall have
3 demonstrated to the satisfaction of the Insurance Commissioner
4 that he has complied with all of the requirements of this
5 section.
6 (j) The Insurance Commissioner may, in accordance with law,
7 promulgate such rules and regulations as may be necessary to
8 implement the requirement of continuing education for persons
9 licensed as insurance brokers.
10 Section 2. This act shall take effect in six months.
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