Session of 1999
HOUSE BILL No. 2052
By Committee on Insurance
9 AN ACT concerning insurance agents and brokers; relating to continuing
10 education requirements; amending K.S.A. 1998 Supp. 40-240f and re-
11 pealing the existing section.
13 Be it enacted by the Legislature of the State of Kansas:
14 Section 1. K.S.A. 1998 Supp. 40-240f is hereby amended to read as
15 follows: 40-240f. (a) For purposes of this section:
16 (1) "Biennial due date" means March 31, 1991, and March 31 of each
17 odd-numbered year thereafter. Effective January 1, 1997, the term shall
18 mean the date of birth of the licensed agent who is required to complete
19 C.E.C.'s and report the completion of such C.E.C.'s to the commissioner
20 pursuant to this section, except that such due date shall not be earlier
21 than two years from the date of the agent's initial licensure.
22 (2) "Approved subject" or "approved course" means any educational
23 presentation involving insurance fundamentals, insurance law, insurance
24 policies and coverage, insurance needs, insurance risk management, in-
25 surance agency management or other areas, which is offered in a class,
26 seminar or other similar form of instruction, and which has been approved
27 by the commissioner or the commissioner's designee under this section
28 as expanding skills and knowledge obtained prior to initial licensure or
29 developing new and relevant skills and knowledge.
30 (3) "C.E.C." means continuing education credit. One C.E.C. is at
31 least 50 minutes of each clock hour of instruction or the C.E.C. value
32 assigned by the commissioner or the commissioner's designee. The
33 C.E.C. values shall be assigned in whole units. The commissioner or the
34 commissioner's designee shall assign a C.E.C. value to each approved
35 subject on a case-by-case basis.
36 (4) "Biennium" means the period beginning on the effective date of
37 this section and ending on March 31, 1991, and each two-year period
38 thereafter. Effective January 1, 1997, for those agents who were born in
39 an odd-numbered year, the term shall mean the period starting with the
40 agent's biennial due date in 1997 and each two-year period thereafter,
41 for those agents who were born in an even-numbered year, the term shall
42 mean the period starting with the agent's biennial due date in 1998 and
43 each two-year period thereafter.
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1 (5) "Inactive agent" means a licensed agent who presents evidence
2 satisfactory to the commissioner which demonstrates that such agent will
3 not do any act toward transacting the business of insurance for not less
4 than two but not more than six years from the date such evidence is
5 received by the commissioner. Such additional periods may be granted
6 by the commissioner upon further presentation of evidence satisfactory
7 to the commissioner.
8 (b) (1) Every licensed agent who is an individual and holds a property
9 or casualty qualification, or both, shall biennially obtain a minimum of
10 twelve C.E.C.'s in courses certified as property and casualty which, on
11 and after April 1, 1995, shall include at least one hour of instruction in
12 insurance ethics. No more than three C.E.C.'s shall be in insurance
13 agency management.
14 (2) Every licensed agent who is an individual and holds a life, accident
15 and health, or variable contracts qualification, or any combination thereof,
16 shall biennially complete twelve C.E.C.'s in courses certified as life, ac-
17 cident and health, or variable contracts which, on and after April 1, 1995,
18 shall include at least one hour of instruction in insurance ethics. No more
19 than three C.E.C.'s shall be in insurance agency management.
20 (3) Every licensed agent who is an individual and holds a crop only
21 qualification shall biennially obtain a minimum of two C.E.C.'s in courses
22 certified as crop under the property and casualty category.
23 (4) Every licensed agent who is an individual and is licensed only for
24 title insurance shall biennially obtain a minimum of four C.E.C.'s in
25 courses certified by the board of abstract examiners as title under the
26 property and casualty category.
27 (5) Every licensed agent who is an individual and holds a life insur-
28 ance license solely for the purpose of selling life insurance or annuity
29 products used to fund a prearranged funeral program and whose report
30 of compliance required by subsection (f) of this section is accompanied
31 by a certification from an officer of each insurance company represented
32 that the agent transacted no other insurance business during the period
33 covered by the report shall biennially obtain a minimum of two C.E.C.'s
34 in courses certified as life or variable contracts under the life, accident
35 and health, or variable contracts category.
36 (c) Individual agents who hold licenses with both a property or ca-
37 sualty qualification, or both, and a life, accident and health, or variable
38 contracts qualification, or any combination thereof, and who earn C.E.C.'s
39 from courses certified by the commissioner or the commissioner's des-
40 ignee as qualifying for credit in any class, may apply those C.E.C.'s toward
41 either the property or casualty continuing education requirement or to
42 the life, accident and health, or variable contracts continuing education
43 requirement. However, a C.E.C. shall not be applied to satisfy both the
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1 biennial property or casualty requirement, or both, and the biennial re-
2 quirement for life, accident and health, or variable contracts, or any com-
3 bination thereof.
4 (d) An instructor of an approved subject shall be entitled to the same
5 credit as a student completing the study.
6 (e) (1) An individual agent who has been licensed for more than one
7 year shall, on or before the biennial due date, file a report with the com-
8 missioner that such agent has met the continuing education requirements
9 for the previous biennium ending on such biennial due date. Every in-
10 dividual agent shall maintain a record of all courses attended together
11 with a certificate of attendance for the remainder of the biennium in
12 which the courses were attended and the entire biennium immediately
14 (2) If the required report showing proof of continuing education
15 completion is not received by the commissioner by the biennial due date,
16 the individual agent's qualification and corresponding license or licenses
17 shall be automatically suspended for a period of 90 calendar days or until
18 such time as the agent satisfactorily demonstrates completion of the con-
19 tinuing education requirement whichever is sooner and a penalty of $100
20 shall be assessed for each license suspended. If the required proof of
21 continuing education completion and the monetary penalty is not fur-
22 nished within 90 calendar days of the biennial due date, the individual
23 agent's qualification and corresponding license or licenses will expire. The
24 commissioner may waive the penalties of this subsection upon written
25 application by the agent in cases of extreme hardship.
26 (3) An applicant for an individual agent's license who previously held
27 a license which expires on or after May 1, 1989, because of failure to meet
28 continuing education requirements and who seeks to be relicensed shall
29 pass the examination required for issuance of the new qualification and
30 license and provide evidence that appropriate C.E.C.'s have been com-
31 pleted for the prior biennium.
32 (4) An applicant for an individual agent's license who previously held
33 a license which expired on or before April 30, 1989, for failure to meet
34 the minimum educational requirements contained in K.S.A. 40-240b, and
35 amendments thereto, as it existed prior to the passage of this act and who
36 seeks to be relicensed shall pass the examination required for issuance of
37 the new license.
38 (5) Upon written application by an individual agent, the commis-
39 sioner may
, in: (A) In cases involving medical hardship or military service,
40 extend the time within which to fulfill the minimum continuing educa-
41 tional requirements for a period of not to exceed 180 days; (B) in cases
42 involving agents who are 70 years of age or more and have been licensed
43 for 35 years or more, the commissioner may waive the requirements of
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1 this section entirely.
2 (6) This section shall not apply to inactive agents as herein defined
3 during the period of such inactivity. Upon return to active status or ex-
4 piration of the maximum inactive period, the agent shall have the re-
5 mainder of the current calendar year plus the next calendar year to com-
6 ply with the continuing education requirement.
7 (f) (1) A course, program of study, or subject shall be submitted to
8 and certified by the commissioner or the commissioner's designee in or-
9 der to qualify for purposes of continuing education.
10 (2) The following information shall be furnished with each request
11 for certification:
12 (A) Name of provider or provider organization;
13 (B) course title;
14 (C) date course will be offered;
15 (D) location where course will be offered;
16 (E) outline of the course including a schedule of times when subjects
17 will be presented;
18 (F) names and qualifications of instructors;
19 (G) number of C.E.C.'s requested; and
20 (H) a nonrefundable course fee in the amount of $50 per course or
21 $250 per year for all courses, and a nonrefundable annual provider fee of
23 (3) Upon receipt of such information, the commissioner or commis-
24 sioner's designee shall grant or deny certification as an approved subject
25 and indicate the number of C.E.C.'s that will be recognized for the sub-
26 ject. Each approved subject or course shall be assigned by the commis-
27 sioner or commissioner's designee to one or both of the following classes:
28 (A) Property and casualty or
29 (B) life insurance (including annuity and variable contracts) and ac-
30 cident and health insurance.
31 (4) A course or subject shall have a value of at least one C.E.C.
32 (5) A provider seeking approval of a course for continuing education
33 credit shall provide for the issuance of a certificate of attendance to each
34 person who attends a course offered by it. The certificate shall be signed
35 by either the course instructor or the provider's authorized representa-
36 tive. Providers shall also maintain a list of all persons who attend courses
37 offered by them for continuing education credit for the remainder of the
38 biennium in which the courses are offered and the entire biennium im-
39 mediately following.
40 (6) The commissioner may grant approval to specific programs of
41 study that have appropriate merit, such as programs with broad national
42 or regional recognition, notwithstanding the lack of a request for certifi-
43 cation. The fee prescribed by subsection (f)(2)(H) of this section shall not
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1 apply to approvals granted hereunder.
2 (7) The C.E.C. value assigned to any course, program of study or
3 subject, other than a correspondence course or other course pursued by
4 independent study, shall in no way be contingent upon passage or satis-
5 factory completion of any examination given in connection with such
6 course, program of study or subject.
7 (g) The commissioner shall provide, upon request, a list of all ap-
8 proved continuing education courses currently available to the public.
9 (h) An individual agent who studies an insurance subject indepen-
10 dently, other than an agent's examination, approved by the commissioner
11 or commissioner's designee, and who passes an independently monitored
12 examination, shall receive credit for the C.E.C.'s assigned by the com-
13 missioner or commissioner's designee as recognition for the approved
14 subject. No other credit shall be given for independent study.
15 (i) The commissioner may waive the continuing education require-
16 ments imposed by this act for nonresident agents who provide evidence
17 of compliance with continuing education requirements imposed by their
18 state of domicile.
19 Sec. 2. K.S.A. 1998 Supp. 40-240f is hereby repealed.
20 Sec. 3. This act shall take effect and be in force from and after its
21 publication in the statute book.