Arkansas Administrative Code
Agency 054 - Arkansas Insurance Department
Rule 054.00.99-006 - Rule and Regulation 50 - Agents Continuing Education
Universal Citation: AR Admin Rules 054.00.99-006
Current through Register Vol. 49, No. 9, September, 2024
SECTION 1. PURPOSE
The purpose of this Rule and Regulation is to establish requirements and standards for continuing education for natural persons licensed as insurance agents or brokers by the Commissioner.
SECTION 2. AUTHORITY
This Rule is issued under the authority vested in the Commissioner of Insurance ("Commissioner") by Ark. Code Ann. Section 23-64-304(a), as amended by Act 1004 of 1997.
SECTIONS. EFFECTIVE DATE AND APPLICABILITY
This Rule and Regulation shall be effective April 15, 1998 and shall be applicable to those persons licensed to act as an insurance agent or broker, who must comply with Ark. Code Ann. §§ 23-64-301, et seq., on and after July 1, 1998, for the sale of the following types of insurance:
A. Life and disability
insurance.
B. Property and casualty
insurance.
C. All lines of
insurance for which an exammination is required for licensing.
SECTION 4. EXEMPTIONS
A. This Rule and Regulation shall not apply
to the following individuals:
1. Persons
holding licenses for which an examination is not required.
2. Adjusters and limited adjusters and
consultants.
3. Any limited or
restricted license the Commissioner may exempt.
4. Any person who is at least sixty (60)
years of age.
5. Any person who has
held a license as an agent, solicitor, 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
agents, non-resident consultants or brokers.
8. Licensed insurance consultants for life,
disability, property or casualty insurance, or for other lines of insurance;
and
9. Nonresident agents and
brokers 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 and regulations of the
commissioner.
B. All
persons requesting exemption from compliance under Subsection (A)(4) and (5)
only shall complete and file with the License Division of the Arkansas
Insurance Department the form as found in Appendix F.
C. Newly licensed agents and brokers during
the calendar year in which the applicant first received an Arkansas license
shall not be required to comply with continuing education requirements;
continuing education requirements shall be due on the licensee's birthday in
the first annual period after first renewal of the license (i.e. one year from
first renewal of the license).
SECTION 5. EDUCATIONAL REQUIREMENTS
A. Effective July 1, 1998, any non-exempt
persons licensed as agents or brokers shall, before each annual period on their
birthday, complete those courses of instruction approved by the Commissioner
and equivalent to the following:
1. A total
of eight (8) hours of instruction for a life and disability license or life or
disability licenses.
2. A total of
eight (8) hours of instruction for a property and/or casualty
license.
3. A total of ten (10)
hours of instruction for those other persons holding dual licenses for life
and/or disability and property and/or casualty.
B. 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
(CPCU) professional designated program.
5. Any part of the Certified Insurance
Counselor Program.
6. Any course
offered by Certified Health Consultant (CHC).
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 agents' association or insurance trade
association or any independent program of instruction.
10. Any correspondence courses, including,
but not limited to, correspondence courses offered via the Internet. Any
correspondence course, subject to the following:
i. 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.
ii. All correspondence course examinations
must be proctored.
iii. Proctors
must provide an affidavit attesting under oath that the 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.
iv. Appendix G must
accompany the licensee's completed Certificate, Appendix E. Correspondence
course providers shall maintain all records on proctors and proctored
examinations.
v. A proctor must be
registered annually with and be acceptable to the Commissioner. Proctors may
not serve for examinations of: family members or relatives or dependents,
employers or supervisors, employees or subordinates, partners or joint
venturers or co-owners, current or former teachers or pupils, neighbors or
personal friends or significant others, or for anyone in whom the proctor has
an economic or other interest in assuring the successful outcome of the
examination.
vi. Course providers'
filings must explain how correspondence course exams will not be duplicated for
any two (2) test takers.
vii.
Correspondence courses approved and subsequently purchased by the agent or
broker, prior to the re-adoption date of this Rule, shall not 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
agent or broker 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. The
Commissioner shall assign the number of continuing education hours for which
approved courses qualify.
SECTION 6. COURSE PROVIDER APPROVAL
A. Application for approval as a provider
shall be submitted to the License Division of the Arkansas Insurance Department
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 or proctors.
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.
3.
Schedules of classes, seminars and meetings for all locations.
B. 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 7. INSTRUCTOR QUALIFICATIONS
A. A person teaching any approved course of
instruction or lecturing at any approved seminar or meeting shall qualify for
the same number of educational hours for that course as would be granted to a
person taking and successfully completing such course, seminar or
program.
B. Instructors must have
had specific insurance training or educational experiences satisfactory and
approved by the State Insurance Commissioner in order to be certified to teach
any part of any approved course. Each instructor must have five (5) 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 State
Insurance Commissioner. Applicants for approval as an instructor shall complete
and submit Appendix D to the License Division of the Arkansas Insurance
Department.
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.
SECTION 8. 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 9. FEES AND COMPLIANCE
A. Every
person subject to this Regulation shall furnish, in a form satisfactory to the
Commissioner, written certification as to the courses, programs and seminars of
instruction taken and successfully completed by such person. Such certification
shall be executed by or on behalf of the course provider and may be in the form
prescribed in Appendix E, The Commissioner shall provide direction to the
vendor as to the form used. Each licensee or the approved course provider may
make the filing for the licensee to the Commissioner or his designee. The
Commissioner may require vendors to submit the agent's Certificate of
Completion of Continuing Education hours on an electronic media to the
Department, and may require the vendor 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 subject to this Rule and
Regulation and who furnishes to the Commissioner or Vendor of the Commissioner,
written certification as to the courses or programs of instruction taken and
successfully completed shall tender a filing fee as directed by the
Commissioner or Vendor of the Commissioner under his approval.
C. Excess educational hours accumulated
during any annual period may be carried forward only to the next annual period.
Excess hours in the amount required pursuant to this rule may be carried
forward to the next calendar year. Contnuing education carried forward to the
following calendar year shall expire upon commencement of the third year
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 10. PENALTIES
Upon failure of any agent or broker to comply with Ark. Code Ann, Section 23-64-301, et seq., the Commissioner shall take the steps enumerated in Ark. Code Ann. Section 23-64-304(d) against such individual's license. Failure to comply with this Rule may result in imposition of penalties contained in § 23-64-216, as amended, or other applicable laws or rules.
SECTION 11. 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.
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