Current through Register Vol. 49, No. 9, September, 2024
SECTION 1.
PURPOSE
The purpose of Rule 50 is to establish requirements and standards
for continuing education for natural persons licensed as insurance producers
("producers") by the Arkansas Insurance Commissioner (the
"Commissioner").
SECTION 2.
AUTHORITY
This Rule is issued under the authority vested in the
Commissioner by Ark. Code Ann. §
23-61-108, and
the Arkansas Administrative Procedure Act, codified at Ark. Code Ann.
§§
25-15-201, et
seq., and Ark. Code Ann. §
23-64-304(a),
as amended by Act 1203 of 2003 and Act 1697 of 2005.
SECTION 3
EXEMPTIONS
A. This Rule shall not apply to the following
individuals:
1. Persons holding licenses for
which an examination is not required;
2. Adjusters and limited adjusters;
3. Any limited or restricted license the
Commissioner may exempt;
4. Any
person, licensed as a resident producer prior to July 1, 2003, who is at least
sixty (60) years of age;
5. Any
person, licensed as a resident producer prior to July 1, 2003, who has held a
license as a producer, insurance consultant or broker for a period of at least
fifteen (15) consecutive years;
6.
Third-party administrators who do not solicit business;
7. Non-resident producers, non-resident
consultants, and/or non-resident adjusters;
8. Licensed insurance consultants;
9. Nonresident producers in the first full
year of resident licensing following the year after a change in the state of
domicile or residency to the State of Arkansas; but thereafter annually or
otherwise in accordance with insurance continuing education laws, and rules of
the Commissioner;
10. Any producer
called to active duty in any branch of the United States military services
including, but not limited to, the United States Coast Guard and Reserves,
during the entire period of active duty service;
11. The exceptions contained in Subsections
(A)(4) and (5) of this Section are no longer applicable to insurance producers
who became resident licensees after July 1, 2003, or insurance producers who
have let the Arkansas producer license lapse and have become re-licensed;
and
12. Individuals (or an
appointed guardian or person with an appropriately worded power of attorney)
with grave or debilitating illnesses or injuries may write for an extension for
no more than twelve (12) months, for completion of the annual CE hours required
for a particular calendar year. The request must be accompanied by a written
doctor's statement confirming the medical history under review and with a
medical estimate as to how long the individual will be unable to function
normally enough to complete the rule requirements. The request from the
producer must include his/her mail or electronic mail note that he/she is
voluntarily waiving the private or confidential nature of the illness or injury
in order to qualify for this extension. With similar documentation, including a
signed note from the attending physician and a privacy waiver from and signed
by the patient, producers (or the relative's appointed guardian or person with
an appropriately worded power of attorney) may also file for an extension due
to the terminal or debilitating illness of a grandparent, parent, spouse,
sibling, or child. The Commissioner has discretion to grant such time
extensions for good cause under Ark. Code Ann. §
23-64-304(b),
but only up to one (1) year; and may deny requests from any producer failing,
or who has in the past failed, to comply with Arkansas laws or rules, or failed
to comply within any extended time period granted by the Commissioner under
this subsection.
B.
Newly licensed producers for the initial full line of authority must be
licensed for one (1) full year prior to renewal of the license, before
continuing education requirements are imposed. Example: If a new producer
becomes licensed in June of 2005, and the expiration of the license is February
2, 2006, the producer must pay the renewal fee, but continuing education is not
due until February 2, 2007, because the exemption period of one (1) year has
not been reached prior to the 2006 expiration date.
SECTION 4.
EDUCATIONAL
REQUIREMENTS
A. Number of Course Hours
Upon the effective date of this Rule, any non-exempt persons
licensed as producers shall, annually on or before their birthdays, complete
those courses of instruction approved by the Commissioner and equivalent to the
following:
1. A total of eight (8)
hours of instruction which must include one (1) hour of ethics for a life
and/or accident and health line(s) of authority;
2. A total of eight (8) hours of instruction
which must include one (1) hour of ethics for a property and/or casualty
line(s) of authority;
3. A total of
eight (8) hours of instruction which must include one (1) hour of ethics for
personal lines of authority; and
4.
A total often (10) hours of instruction which must include one (1) hour of
ethics for producers holding dual licenses for life and/or accident and health
as well as property and/or casualty and/or personal lines.
B. Course Approval
Subject to submission and approval of the Commissioner, the
courses or programs of instruction successfully completed which shall be deemed
to meet the Commissioner's standards for continuing education requirements
are:
1. Any part of the Life
Underwriting Training Council Life Courses Curriculum and Health
Courses;
2. Any part of the
American College "CLU" diploma curriculum;
3. Any part of the Insurance Institute of
America's Program in general insurance;
4. Any part of the American Institute for
Property and Liability Underwriters' Chartered Property Casualty Underwriter
professional designated program;
5.
Any part of the Certified Insurance Counselor Program;
6. Any course offered by Certified Health
Consultant;
7. Any course offered
by Registered Health Consultant;
8.
Any insurance related course approved by the Commissioner and offered by an
accredited college or university;
9. Any course or program of instruction,
seminar, or meeting sponsored by any authorized insurer, recognized producers'
association, insurance trade association, or any independent program of
instruction;
10. Any correspondence
courses, including, but not limited to, correspondence courses offered via the
Internet, subject to the following:
a. All
correspondence courses must have a sealed and numbered written examination
which measures the licensee's knowledge of the information. Course providers
may also add oral or electronic correspondence courses, with oral or electronic
examinations. Electronic filings with the Arkansas Insurance Department's
License Division ("License Division") are encouraged and permitted;
b. All correspondence course examinations
must be proctored;
c. Proctors must
provide an affidavit attesting under oath or affirmation that the
correspondence or electronic course examination was proctored, that the
examination was provided in a manner specified by the correspondence course
provider, and that they are not part of or aware of any efforts to circumvent
the requirements of the examination, as provided in Appendix G;
d. Appendix G must accompany the filing of
the Appendix H roster with the License Division. Correspondence course
providers shall maintain all records or electronic copies of records on
proctors and proctored examinations;
e. Any person with no family or financial
relationship to the licensed producer may proctor an examination under this
Rule;
f. Course providers' filings
must explain how correspondence course exams will not be duplicated for any two
(2) test takers; and
g.
Correspondence courses approved and subsequently purchased by the producer,
prior to the effective date of this Rule, may be governed by this Rule; however
course providers must contact the License Division to reconfirm credit
hours.
11. Any other
course or program approved by the Commissioner.
12. Subject to approval by the Commissioner,
the active annual membership of the licensed producer in local, regional,
state, or national professional insurance organizations or associations may be
approved for up to two (2) annual hours of instruction. These hours shall be
credited upon timely filing with the Commissioner or his designee appropriate
written evidence acceptable to the Commissioner of such active membership in
the organization or association.
C. Course Hour Valuation
1. The Commissioner shall assign the number
of continuing education hours for which approved courses qualify.
2. Key Components - Filings must include and
clearly demonstrate:
a. Material that is
current, relevant, accurate, and that includes valid reference materials,
graphics and interactivity;
b.
Clearly defined objectives and course completion criteria;
c. Specific instructions to register,
navigate, and complete the course work.
d. Technical support/provider representative
available during business hours;
e.
Process to authenticate student identity; and f. Method for measuring the
student's successful completion of course material and for evaluating the
learning experience.
3.
Acceptable Procedures to determine Appropriate Number of Credit Hours -Select
and File one (1) of three (3) Methods below per Course:
a. Method A:
i. 600-700 words (standard font size) = one
(1) text page;
ii.
Textbooks/workbooks/other printed material - one (1) credit for every fifteen
(15) pages;
iii. Three (3) screens
with an aggregate total of approximately 600- 700 words - one (1) text
page;
iv. Forty-five (45) screens -
one (1) hour of credit;
v. Divide
total screens by forty-five (45) - total number of credit hours; iv. Multiply
number of hours by 1.00 for a basic level course; 1.25 for an intermediate
level; 1.50 for an advanced course for additional study time = total number of
credit hours (fractional hours rounded up if.50 or above and rounded down if
.49 or less).
b. Method
B:
i. Divide total number of words by one
hundred eighty (180) (documented average reading time) = number of minutes to
read material;
ii. Divide number of
minutes by fifty (50) = credit hours;
iii. Multiply number of hours by 1.00 for a
basic level course; 1.25 for an intermediate level; 1.50 for an advanced course
for additional study time = total number of credit hours (fractional hours
rounded up if.50 or above and rounded down if.49 or less).
c. Method C
Oral Presentations: Providers may use the timed outline method
for speeches and other oral presentations intended for continuing education
credits. Providers should file a detailed description of the proposed subject
of the program or course, including a timed course outline, list of any
resource materials, and list of speakers or instructors or proctors.
D.
Certificates and Evidence of CE Completion
Certificates of Completion (see Appendix E) which were issued to
producers prior to the effective date of Emergency Rule 50 will be valid for
filing with the Commissioner for two (2) years from the date of the completion
of the course. On the effective date of Emergency Rule 50 course providers will
no longer be required to issue Certificates of Completion. Instead, filing of
CE completion will be evidenced by the course provider filing with the
Department an Appendix H roster within twenty (20) days from the completion of
the course of instruction. Upon the specific request of producers, course
providers may continue to issue Certificates of Completion or other evidence of
course completion, but no filing of such is to be made with the
Department.
E. Course
Repetition
Courses may not be repeated within a 2-year period of time. This
does not apply to one (1) hour ethics courses.
SECTION 5.
COURSE PROVIDER
APPROVAL
A. Forms. The following forms
are prescribed by the Commissioner and are attached as exhibits to this Rule.
All forms are available upon request to the Department or via the Department's
web site at:
http://www.insurance.arkansas.gov/License/divpage.htmAPPENDIX A Course Application for Continuing Education
APPENDIX B Course Valuation
APPENDIX C Change in Curriculum or Instructor
APPENDIX D Application for Approval as Instructor
APPENDIX E Individual Certificate of Completion
APPENDIX F Request for Exemption
APPENDIX G Affidavit of Proctor
APPENDIX H Continuing Education Providers Reporting Roster, with
Instructions
B. Application
for approval as a provider shall be submitted to the License Division not less
than sixty (60) days prior to the expected use of the program. A provider shall
include the following information in duplicate:
1. Detailed description of the subject of the
program or course including a course outline, list of any resource materials,
and list of speakers or instructors.
2. Completion of Appendices A and B and D for
the initial certification, and completion of Appendices C and D upon any change
in curriculum or instructor or proctor. Additionally, the Commissioner will
accept, in lieu of Appendix "A" to this Rule, the most recent edition "Uniform
Continuing Education Reciprocity Course Filing Form" published by the National
Association of Insurance Commissioners. Similarly, the Commissioner may accept,
in lieu of Appendices "B" through "H" to this Rule, the most recent editions of
comparable forms published by the National Association of Insurance
Commissioners.
3. Schedules of
classes, seminars and meetings for all locations.
C. Changes in schedules are to be filed with
the Insurance Department no later than two (2) weeks before such program or
course is offered.
SECTION
6.
INSTRUCTOR QUALIFICATIONS
A. A person teaching any approved course of
instruction or lecturing at any approved seminar or meeting shall qualify for
one (1) hour credit for each hour presenting and/or attendance.
B. Instructors must have had specific
insurance training or educational experiences satisfactory to and approved by
the Commissioner in order to be certified to teach any part of any approved
course. Each instructor must have two (2) or more years of specific insurance
experience and/or education related to and in each part of the insurance
training program in which he instructs and must be approved prior to teaching
any course, or any part of a course, by the Commissioner. Applicants for
approval as an instructor shall complete and submit Appendix D to the License
Division.
C. No person will be
approved as an instructor who has received disciplinary action by the Arkansas
Insurance Department, the Insurance Department of another state, or any similar
regulatory body or court. The Commissioner shall have the authority to waive
this requirement for good cause shown in a written filing.
SECTION 7.
PROGRAM REVIEW
Representatives of the Insurance Commissioner shall have the
authority to visit a course or program and review its offering at any time
including, but not limited to, curriculum records and attendance
records.
SECTION 8.
FEES AND COMPLIANCE
A. For each
completed course, an approved course provider shall file with the Commissioner
or his/her designee a roster in hard copy or electronic form as prescribed in
Appendix H. The course provider shall file the Appendix H roster with the
Commissioner in a timely manner, but not later than twenty (20) days from the
completion of the course of instruction. A vendor is an individual,
corporation, or legal entity hired by the Commissioner to facilitate the
electronic functions of this Rule. The Commissioner may require providers to
submit the course providers' Appendix H per course on a hard-copy or an
electronic medium to the Department, or may require the provider to submit
information to an outside vendor or other parties contracting with the
Commissioner to maintain and update insurance licensees' continuing education
data.
B. Every person/producer
subject to this Rule shall tender a maximum $10 CE filing fee in the manner and
at the time as directed by the Commissioner or by a vendor of the Commissioner.
On or before their birthdate each year, Arkansas resident producers who are
required to meet continuing education requirements, must pay an annual $10.00
continuing education filing fee, simultaneously with the other fees required to
renew or continue licensure.
C.
Excess educational hours accumulated during any annual period may be carried
forward only to the next annual period, subject to other limitations in this
Rule. Continuing education carried forward to the following calendar year shall
expire upon commencement of the third (3rd) annual
period following completion of the hours.
D. For good cause shown, the Commissioner may
grant an extension of time during which the requirements may be
completed.
SECTION 9.
PENALTIES
A. Upon failure of any
producer to comply with Ark. Code Ann. §§
23-64-301,
et seq., the Commissioner shall take the steps enumerated in Ark. Code Ann.
§
23-64-304(d)
against such individual's license. Failure to comply with this Rule may result
in imposition of penalties contained in Ark. Code Ann. §
23-64-216,
as amended, or other applicable laws or rules.
B. Any licensee fined under Ark. Code Ann.
§
23-64-304(d)
may request that the Commissioner seal the licensee's records at the Department
regarding the fine. The underlying conduct of any licensee whose record has
been sealed under Ark. Code Ann. §
23-64-304
shall be deemed as a matter of law never to have occurred, and the licensee is
not required to disclose the violation on any subsequent application after the
records are sealed.
SECTION
10.
SEVERABILITY
Any section or provision of this Rule held by the court to be
invalid or unconstitutional will not affect the validity of any other section
or provision.
SECTION 11.
EFFECTIVE DATE AND APPLICABILITY
The purpose of final Rule 50 is to replace in its entirety
Emergency Rule 50, "Producers Continuing Education", which was issued by the
Commissioner with an effective date of June 15, 2006. Final Rule 50 shall be
effective on and after October 20, 2006 and shall be applicable to those
persons licensed to act as an insurance producer or continuing education course
provider, or proctor, who must comply with Ark. Code Ann. §§
23-64-301,
et seq., and other laws for continuation of producers' licenses and for the
sale of the following types of insurance, as duplicates of or in addition to
any listed elsewhere in this Rule:
A.
Life, and/or accident and health insurance,
B. Property and/or casualty insurance,
and
C. Personal lines.
(signed by Julie Benafield Bowman)
________________________________
JULIE BENAFIELD BOWMAN
INSURANCE COMMISSIONER
STATE OF ARKANSAS
(October 20, 2006)
DATE
ARKANSAS INSURANCE DEPARTMENT
APPENDIX A
COURSE APPLICATION FOR CONTINUING EDUCATION
CREDIT
FOR USE WITH RULE 50
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here to view image
ARKANSAS INSURANCE DEPARTMENT
APPENDIX B
COURSE VALUATION FOR USE WITH RULE 50
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ARKANSAS INSURANCE DEPARTMENT
APPENDIX C
CHANGE IN CURRICULUM OR INSTRUCTOR FOR USE WITH RULE
50
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ARKANSAS INSURANCE DEPARTMENT
APPENDIX D
APPLICATION FOR APPROVAL AS INSTRUCTOR FOR USE WITH RULE
50
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ARKANSAS INSURANCE DEPARTMENT
APPENDIX E
INDIVIDUAL CERTIFICATE OF COMPLETION FOR USE WITH RULE
50
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ARKANSAS INSURANCE DEPARTMENT
APPENDIX F
REQUEST FOR EXEMPTION
FOR USE WITH RULE 50
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ARKANSAS INSURANCE DEPARTMENT
APPENDIX G
AFFIDAVIT OF PROCTOR
FOR USE WITH RULE 50
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APPENDIX H
CONTINUING EDUCATION PROVIDERS
REPORTING ROSTER OF CONTINUING EDUCATION COMPLETION
FOR USE WITH RULE 50
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ARKANSAS INSURANCE DEPARTMENT
1200 WEST THIRD STREET
LITTLE ROCK AR 72201
PHONE: 501-371-2750
Instructions for Appendix H
Continuing Education Providers Reporting Roster For Use
with Rule 50
Complete Items 1-12.
1.
Provider Name-complete name of CE course provider
2. Provider Number-the number assigned to the
provider by the Insurance Department
3. Provider Contact Name-the individual staff
should contact for questions on the form
4. Phone Number-the provider's number staff
should call for questions on the form
5. Date of Roster Submission-date the form is
being sent to the Insurance Department; but in any event no later than twenty
(20) days after the completion of the course
6. Course Title-the name of the course taken
by the producer
7. License
number-producer's license number assigned by the Department
8. Name of Producer-print the name of the
producer (full legal name)
9.
Signature of producer-the producer must sign the roster, Appendix H
10. Date of completion-the date the course
was completed by the producer
11.
Course Number-the number assigned by the Department to the course
12. Credit Hours-the hours credited for
completion of the course when approved by the Department
If you should have any questions regarding this form, please
contact the Department License Division at 501-371-2750; or email
insurance.license@arkansas.gov.
