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12  AN ACT concerning insurance agents and brokers; providing for the li--
13    censing of agents; regarding continuing education requirements; con--
14    cerning the certification of agents by companies; amending K.S.A. 40--
15    241i and K.S.A. 1996 Supp. 40-240f and repealing the existing sections.-
16
17  Be it enacted by the Legislature of the State of Kansas:-
18    Section 1.  K.S.A. 1996 Supp. 40-240f is hereby amended to read as -
19  follows: 40-240f. (a) For purposes of this section:-
20    (1)  ``Biennial due date'' means March 31, 1991, and March 31 of each -
21  odd-numbered year thereafter. Effective January 1, 1997, the term shall -
22  mean the date of birth of the licensed agent who is required to complete -
23  C.E.C.'s and report the completion of such C.E.C.'s to the commissioner -
24  pursuant to this section, except that such due date shall not be earlier -
25  than two years from the date of the agent's initial licensure.-
26    (2)  ``Approved subject'' or ``approved course'' means any educational -
27  presentation involving insurance fundamentals, insurance law, insurance -
28  policies and coverage, insurance needs, insurance risk management, in--
29  surance agency management or other areas, which is offered in a class, -
30  seminar or other similar form of instruction, and which has been approved -
31  by the commissioner or the commissioner's designee under this section -
32  as expanding skills and knowledge obtained prior to initial licensure or -
33  developing new and relevant skills and knowledge.-
34    (3)  ``C.E.C.'' means continuing education credit. One C.E.C. is at -
35  least 50 minutes of each clock hour of instruction or the C.E.C. value -
36  assigned by the commissioner or the commissioner's designee. The -
37  C.E.C. values shall be assigned in whole units. The commissioner or the -
38  commissioner's designee shall assign a C.E.C. value to each approved -
39  subject on a case-by-case basis.-
40    (4)  ``Biennium'' means the period beginning on the effective date of -
41  this section and ending on March 31, 1991, and each two-year period -
42  thereafter. Effective January 1, 1997, for those agents who were born in -
43  an odd-numbered year, the term shall mean the period starting with the -
44  -
HB 2071--Am. by S-
                                     

 1  agent's biennial due date in 1997 and each two-year period thereafter, -
 2  for those agents who were born in an even-numbered year, the term shall -
 3  mean the period starting with the agent's biennial due date in 1998 and -
 4  each two-year period thereafter.-
 5    (5)  ``Inactive agent'' means a licensed agent who presents evidence -
 6  satisfactory to the commissioner which demonstrates that such agent will -
 7  not do any act toward transacting the business of insurance for not less -
 8  than two but not more than six years from the date such evidence is -
 9  received by the commissioner. Such additional periods may be granted -
10  by the commissioner upon further presentation of evidence satisfactory -
11  to the commissioner.-
12    (b) (1)  Every licensed agent who is an individual and holds a property -
13  or casualty qualification, or both, shall biennially obtain a minimum of -
14  twelve C.E.C.'s in courses certified as property and casualty which, on -
15  and after April 1, 1995, shall include at least one hour of instruction in -
16  insurance ethics. No more than three C.E.C.'s shall be in insurance -
17  agency management.-
18    (2)  Every licensed agent who is an individual and holds a life, accident -
19  and health, or variable contracts qualification, or any combination thereof, -
20  shall biennially complete twelve C.E.C.'s in courses certified as life, ac--
21  cident and health, or variable contracts which, on and after April 1, 1995, -
22  shall include at least one hour of instruction in insurance ethics. No more -
23  than three C.E.C.'s shall be in insurance agency management.-
24    (3)  Every licensed agent who is an individual and holds a crop only -
25  qualification shall biennially obtain a minimum of two C.E.C.'s in courses -
26  certified as crop under the property and casualty category.-
27    (4)  Every licensed agent who is an individual and is licensed only for -
28  title insurance shall biennially obtain a minimum of four C.E.C.'s in -
29  courses certified by the board of abstract examiners as title under the -
30  property and casualty category.-
31    (5)  Every licensed agent who is an individual and holds a life insur--
32  ance license solely for the purpose of selling life insurance or annuity -
33  products used to fund a prearranged funeral program and whose report -
34  of compliance required by subsection (f) of this section is accompanied -
35  by a certification from an officer of each insurance company represented -
36  that the agent transacted no other insurance business during the period -
37  covered by the report shall biennially obtain a minimum of two C.E.C.'s -
38  in courses certified as life or variable contracts under the life, accident -
39  and health, or variable contracts category.-
40    (c)  Individual agents who hold licenses with both a property or ca--
41  sualty qualification, or both, and a life, accident and health, or variable -
42  contracts qualification, or any combination thereof, and who earn C.E.C.'s -
43  from courses certified by the commissioner or the commissioner's des--
44  -
HB 2071--Am. by S-
                                     

 1  ignee as qualifying for credit in any class, may apply those C.E.C.'s toward -
 2  either the property or casualty continuing education requirement or to -
 3  the life, accident and health, or variable contracts continuing education -
 4  requirement. However, a C.E.C. shall not be applied to satisfy both the -
 5  biennial property or casualty requirement, or both, and the biennial re--
 6  quirement for life, accident and health, or variable contracts, or any com--
 7  bination thereof.-
 8    (d)  An instructor of an approved subject shall be entitled to the same -
 9  credit as a student completing the study.-
10    (e) (1)  An individual agent who has been licensed for more than one -
11  year shall, on or before the biennial due date, file a report with the com--
12  missioner that such agent has met the continuing education requirements -
13  for the previous biennium ending on such biennial due date. Every in--
14  dividual agent shall maintain a record of all courses attended together -
15  with a certificate of attendance for the remainder of the biennium in -
16  which the courses were attended and the entire biennium immediately -
17  following.-
18    (2)  If the required report showing proof of continuing education -
19  completion is not received by the commissioner by the biennial due date, -
20  the individual agent's qualification and corresponding license or licenses -
21  shall be automatically suspended for a period of 90 calendar days or until -
22  such time as the agent satisfactorily demonstrates completion of the con--
23  tinuing education requirement whichever is sooner and a penalty of $100 -
24  shall be assessed for each license suspended. If the required proof of -
25  continuing education completion and the monetary penalty is not fur--
26  nished within 90 calendar days of the biennial due date, the individual -
27  agent's qualification and corresponding license or licenses will expire. The -
28  commissioner may waive the penalties of this subsection upon writ--
29  ten application by the agent in cases of extreme hardship.-
30    (3)  An applicant for an individual agent's license who previously held -
31  a license which expires on or after May 1, 1989, because of failure to meet -
32  continuing education requirements and who seeks to be relicensed shall -
33  pass the examination required for issuance of the new qualification and -
34  license and provide evidence that appropriate C.E.C.'s have been com--
35  pleted for the prior biennium. The commissioner may waive the penalties -
36lties  of this subsection upon written application by the agent in cases of extreme -
37eme  hardship.-
38    (4)  An applicant for an individual agent's license who previously held -
39d  a license which expired on or before April 30, 1989, for failure to meet -
40t  the minimum educational requirements contained in K.S.A. 40-240b, and -
41  amendments thereto, as it existed prior to the passage of this act and who -
42  seeks to be relicensed shall pass the examination required for issuance of -
43uance  the new license.-
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HB 2071--Am. by S-
                                     

 1    (4)  An applicant for an individual agent's license who previ--
 2  ously held a license which expired on or before April 30, 1989, for -
 3  failure to meet the minimum educational requirements contained -
 4  in K.S.A. 40-240b, and amendments thereto, as it existed prior to -
 5  the passage of this act and who seeks to be relicensed shall pass -
 6  the examination required for issuance of the new license.-
 7    (5) (4) (5)  Upon written application by an individual agent, the com--
 8  missioner may, in cases involving medical hardship or military service, -
 9  extend the time within which to fulfill the minimum continuing educa--
10  tional requirements for a period of not to exceed 180 days.-
11    (6) (5) (6)  This section shall not apply to inactive agents as herein -
12  defined during the period of such inactivity. Upon return to active status -
13  or expiration of the maximum inactive period, the agent shall have the -
14  remainder of the current calendar year plus the next calendar year to -
15  comply with the continuing education requirement.-
16    (f) (1)  A course, program of study, or subject shall be submitted to -
17  and certified by the commissioner or the commissioner's designee in or--
18  der to qualify for purposes of continuing education.-
19    (2)  The following information shall be furnished with each request -
20  for certification:-
21    (A)  Name of provider or provider organization;-
22    (B)  course title;-
23    (C)  date course will be offered;-
24    (D)  location where course will be offered;-
25    (E)  outline of the course including a schedule of times when subjects -
26  will be presented;-
27    (F)  names and qualifications of instructors;-
28    (G)  number of C.E.C.'s requested; and-
29    (H)  a nonrefundable course fee in the amount of $50 per course or -
30  $250 per year for all courses, and a nonrefundable annual provider fee of -
31  $100.-
32    (3)  Upon receipt of such information, the commissioner or commis--
33  sioner's designee shall grant or deny certification as an approved subject -
34  and indicate the number of C.E.C.'s that will be recognized for the sub--
35  ject. Each approved subject or course shall be assigned by the commis--
36  sioner or commissioner's designee to one or both of the following classes:-
37    (A)  Property and casualty or-
38    (B)  life insurance (including annuity and variable contracts) and ac--
39  cident and health insurance.-
40    (4)  A course or subject shall have a value of at least one C.E.C.-
41    (5)  A provider seeking approval of a course for continuing education -
42  credit shall provide for the issuance of a certificate of attendance to each -
43  person who attends a course offered by it. The certificate shall be signed -
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HB 2071--Am. by S-
                                     

 1  by either the course instructor or the provider's authorized representa--
 2  tive. Providers shall also maintain a list of all persons who attend courses -
 3  offered by them for continuing education credit for the remainder of the -
 4  biennium in which the courses are offered and the entire biennium im--
 5  mediately following.-
 6    (6)  The commissioner may grant approval to specific programs of -
 7  study that have appropriate merit, such as programs with broad national -
 8  or regional recognition, notwithstanding the lack of a request for certifi--
 9  cation. The fee prescribed by subsection(f)(2)(H) of this section shall not -
10  apply to approvals granted hereunder.-
11    (7)  The C.E.C. value assigned to any course, program of study or -
12  subject, other than a correspondence course or other course pursued by -
13  independent study, shall in no way be contingent upon passage or satis--
14  factory completion of any examination given in connection with such -
15  course, program of study or subject.-
16    (g)  The commissioner shall provide, upon request, a list of all ap--
17  proved continuing education courses currently available to the public.-
18    (h)  An individual agent who studies an insurance subject indepen--
19  dently, other than an agent's examination, approved by the commissioner -
20  or commissioner's designee, and who passes an independently monitored -
21  examination, shall receive credit for the C.E.C.'s assigned by the com--
22  missioner or commissioner's designee as recognition for the approved -
23  subject. No other credit shall be given for independent study.-
24    (i)  The commissioner may waive the continuing education require--
25  ments imposed by this act for nonresident agents who provide evidence -
26  of compliance with continuing education requirements imposed by their -
27  state of domicile.-
28    Sec. 2.  K.S.A. 40-241i is hereby amended to read as follows: 40-241i. -
29    (a) Any company authorized to transact business in this state may, upon -
30  determining that the agent is of good business reputation and, if an in--
31  dividual, has had experience in insurance or will immediately receive a -
32  course of instruction in insurance and on the policies and policy forms of -
33  such company, certify such agent as the agent of the company under the -
34  license in effect for the agent. The certification shall be made to the -
35  commissioner on a form prescribed by the commissioner within 15 30 -
36  days of appointment of the agent by the company. Such appointment -
37  shall be effective immediately and shall remain in effect until May 1, -
38  unless the commissioner is notified to the contrary or the license of the -
39  certified agent is terminated. The A nonrefundable certification fee set -
40  forth in K.S.A. 40-252, and amendments thereto, shall be paid in accor--
41  dance with the billing procedures established by the commissioner. The -
42  certification fee shall not be returned for any reason, and failure of the -
43  company to certify an agent within 15 30 working days of such agent's -
44  -
HB 2071--Am. by S-
                                     

 1  appointment shall subject the company to a penalty of not more than $25 -
 2  per calendar day from the date of appointment to the date proper certi--
 3  fication is recorded by the insurance department.-
 4    (b)  Certification of other than an individual agent will automatically -
 5  include each licensed insurance agent who is an officer, director, partner, -
 6  employee or otherwise legally associated with the corporation, association, -
 7  partnership or other legal entity appointed by the company. The required -
 8  annual certification fee shall be paid for each licensed agent certified by -
 9  the company at the time of the original certification of the agency and -
10  any continuation thereof.-
11    (c)  With respect to insurance on growing crops, evidence satisfactory -
12  to the commissioner that the agent is qualified to transact insurance in -
13  accordance with standards or procedures established by any branch of -
14  the federal government shall be deemed to be the equivalent of certifi--
15  cation by a company.-
16    (d)  Duly licensed insurance agents transacting business in accordance -
17  with the provisions of article 41 of chapter 40 of the Kansas Statutes -
18  Annotated, and amendments thereto, shall be deemed to be certified by -
19  a company for the kinds of insurance permitted under the license in effect -
20  for the agent.-
21    Sec. 3.  K.S.A. 40-241i and K.S.A. 1996 Supp. 40-240f are hereby -
22  repealed.-
23    Sec. 4.  This act shall take effect and be in force from and after its -
24  publication in the statute book.-
25  -