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") and adjusters 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. Individuals holding licenses
for which an examination is not required;
2. Company employed adjusters and limited
"adjusters- as-defined in Rule and Regulation 68;
3. Any limited or restricted license the
Commissioner may exempt;
4. Any
individual, licensed as a resident producer prior to July 1, 2003, who is at
least sixty (60) years of age;
5.
Any individual, 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,_ unless the
home state or designated home state does not have any comparable continuing
education requirements;
8. Licensed
insurance consultants;
9. Any
producer or adjuster 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;
10. 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(A)(4) and (5) of this Section are no longer applicable to insurance producers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 their Arkansas producer license lapse and have become re-licensed, or
to title insurance agents; and
11.
Individuals (or an appointed guardian or person with an appropriately worded
power of attorney) with grave or debilitating illnesses or injuries may request
an extension for no more than twelve (12) months, for completion of the CE
hours required for a particular licensing renewal period. The request must be
accompanied by a written doctor's statement confirming the medical history and
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 anyone 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.
SECTION
4.
EDUCATIONAL REQUIREMENTS
A. Number of Course Hours
1. Upon the effective date of this Rule, any
non-exempt persons licensed as producers shall, biennially on or before their
birthdays, satisfactorily complete a minimum of twenty-four (24) hours of
continuing education instruction approved by the Commissioner, which must
include at least three (3) hours of ethics in each two year license renewal
cycle, if the individual is licensed to sell:
a. Life insurance;
b. Accident and health or sickness
insurance;
c. Property
insurance;
d. Casualty
insurance;
e. Variable products
insurance; or
f. Personal lines
insurance.
2. Upon the
effective date of this Rule, any person who holds an adjuster license shall
satisfactorily complete a minimum of twenty-four (24) hours of continuing
education instruction approved by the Commissioner, which must include three
(3) hours of ethics in each two year license renewal cycle. This provision
shall not apply to:
a. An adjuster that is
licensed in another state;
b. The
licensing state requires continuing education; and
c. The adjuster has satisfied the continuing
education requirements of the licensing state or designated home
state.
3. If a person is
a non-exempt producer required to obtain continuing education under this
Section and a licensed adjuster, that person shall be required to meet the
continuing education requirements of both licenses.
4. The continuing education requirements in
this section do not apply to title insurance agents. License renewal and
continuing education requirements for title insurance agents are governed by
Rule 87.
B. Biennial
Licensing Period
1. Effective until January
1, 2011, all initial licensees and all renewal licensees for the
above-referenced licensees will continue to be issued on an annual basis, with
the continuing education requirements of eight (8) or ten (10) hours due
annually.
2. Effective January 1,
2011, continuing education will be due biennially under the following schedule:
a. For existing individual licensees born in
odd-numbered years, a two-year license will be issued for the 2011 renewal on
the licensee's birth date, and renewed biennially thereafter. Twelve hours (12)
of continuing education, which must include two hours of ethics, must be
completed prior to the licensee's renewal in 2011. Beginning in 2013, the
continuing education requirements of twenty-four (24) hours, which must include
three (3) hours of ethics, will be due at each two year license renewal cycle
based on the licensee's birth date. The first continuing education requirement
of twenty-four (24) hours, which must include three (3) hours of ethics, is due
by the expiration/renewal birth date in 2013, and at each subsequent two year
license renewal.
b. For existing
individual licensees born in even-numbered years, a one-year license will be
issued for the 2011 renewal on the licensee's birth date. Resident producers
and adjusters will be required to have twelve (12) hours of continuing
education, which must include two (2) hours of ethics, due for license renewal
in 2012. Beginning in 2012, these licensees will renew their licenses for a
two-year period and renew biennially on their birth date thereafter. The
continuing education requirement of twenty-four (24) hours, which must include
three (3) hours of ethics, will be due at the first two year license renewal
cycle based on the licensee's birth date in 2014 and biennially on the birth
date thereafter.
c. For new
individual licensees issued in 2011 and subsequent years, license renewal
periods will not be based on birth year. The initial license will be issued for
a two-year period and renewed biennially on the licensee's birth date
thereafter. The continuing education requirements of twenty-four (24) hours,
which must include three (3) hours of ethics, will be due at each two year
license renewal cycle.
d. The
continuing education requirements for resident adjusters and for those
non-residents who have qualified for an Arkansas Adjuster license by taking the
Arkansas adjuster exam will be 24 hours every two years of which 3 hours must
be ethics. The requirement for adjusters to complete continuing education on or
before their birthday will start January 1, 2012. Non-residents who have
qualified by being licensed as an adjuster in their home state are exempt from
continuing education requirements.
C. Requirements for Continuing Education to
Qualify as Distance Learning
1. "Distance
Learning" means a classroom educational program in which the licensee and the
instructor may be in different physical locations yet interact with each other
through various methods of telecommunications, including but not limited to
video teleconference or webinar.
2.
There shall be five required parts to a Distance Learning Continuing Education
course; video imagery, interactivity, written materials, attendance
verification, and a technology help line.
a.
The video imagery shall constitute a live continuing education provider or
instructor, with interactive abilities, which include, but are not limited to,
allowing for attendees to ask real time questions and be assisted by continuing
education providers, instructors, or proctors, in real time.
b. Written materials shall be available in
hard copy or in downloadable format and may be projected as part of the video
imagery during the course of the Distance Learning presentation.
c. A technology help line shall be available
prior to, during, and after the Distance Learning presentation. This technology
help line shall be adequate in staff size to assist attendees within a
reasonable amount of time during the course of the Distance Learning
presentation.
3. The
Distance Learning provider shall be able to verify attendance and shall provide
that attendance verification to the Department.
4. A form shall be made available on the
Department's License Division website that shall be executed by the Distance
Learning provider and submitted to the Department electronically so that the
attendee may receive credit for the Distance Learning course. The form shall be
submitted to the Department no later than ten days after attendee completes the
Distance Learning course.
D. 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 or include an attestation or certification to be completed by
the licensee verifying that the licensee is the person who is completing the
course and exam;
c. Proctors must
provide an affidavit attesting under oath or affirmation that the
correspondence or electronic course examination was proctored and/or included
the attestation or certification required by § 4D(10)(b), 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 and these must be retained in the providers records.
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 or adjustersjnay 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 or adjuster, 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 or adjuster 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.
E. 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;
vi. 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.
F.
Certificates and Evidence of CE Completion
Certificates of Completion (see Appendix E) which were issued to
producers prior to the effective date of this Rule will be valid for filing
with the Commissioner until the expiration date listed on the certificate.
Course providers are no longer required to issue Certificates of Completion.
Instead, filing of CE completion will be evidenced by the course provider upon
filing with the Department either an Appendix G or an Appendix H roster within
ten (10) days from the completion of the course of instruction. Upon specific
request, 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.
G. Course
Repetition
Courses may not be repeated within a 2-year period of
time.
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://insurance.arkansas.gov/License/forms.htm
APPENDIX A-1 Course Application for Continuing Education
APPENDIX A-2 Adjuster Continuing Education Course Approval
Form
APPENDIX A-3 Annuity Suitability Training Course Approval
Form
APPENDIX B Course Valuation
APPENDIX C Continuing Education Provider Application
APPENDIX D Application for Instructor Approval
APPENDIX E Individual Certificate of Completion
APPENDIX F Request for Exemption
APPENDIX G Completion of Correspondence Course and Proctor
Affidavit
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. The Provider
shall submit the course filing electronically.
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. For Correspondence Course filings, the
provider must append Appendix B to the electronic course filing to show the
method and calculation of the hours requested for the course.
For Classroom courses, the provider must append a detailed and
timed outline of the course which is being electronically filed with Appendix
B. For Distance Learning Courses, the provider must append to the electronic
filing a detailed, timed outline of the course presentation, and shall state
the technological method to verify attendance and completion of the course with
Appendix B..
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.
D. Fees and
Renewal. The fee for a provider is one hundred dollars ($100.00) annually and
is renewed September 1 of each year for one hundred dollars ($100.00). Failure
to renew will result in the provider, courses and instruction to become
inactive, and the provider must file a new application for approval, as
discussed in § 5(B) of this Rule.
SECTION 6.
INSTRUCTOR
QUALIFICATIONS
A. An approved
instructor teaching any approved course of instruction or lecturing at any
approved seminar or meeting shall qualify for two (2) hours of credit for each
hour presented.
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 request.
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
by electronic submission as prescribed in Appendix "H". The course provider
shall electronically file the attendees roster with the Commissioner in a
timely manner, but not later than ten (10) 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 in electronic form 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. If an attendee does not sign the roster
provided as Appendix "H", credit will not be granted for the course. The
course provider shall maintain copies of the Appendix "H" Appendix" G" in a
format that is subject to review by the Commissioner.
B. Every person/producer subject to this Rule
shall tender a $10 CE filing fee in the manner and at the time as directed by
the Commissioner or by a vendor of the Commissioner until the implementation of
the biennial renewal period. On or before their birthdate each biennial renewal
period, Arkansas resident producers or adjusters who are required to meet
continuing education requirements, must pay $20.00 continuing education filing
fee in accordance with Rule 57, simultaneously with the other fees required to
renew or continue licensure.
C.
Excess educational hours accumulated during any biennial period may be carried
forward only to the next biennial period, subject to other limitations in this
Rule. Continuing education carried forward to the following calendar year shall
expire upon commencement of the second (2nd)
biennial period following completion of the hours. Additional Ethic hours will
carry over as regular hours and not as ethic education.
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.
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
Rule 50 shall be effective on and after February 1, 2016, and
shall be applicable to those persons licensed to act as an insurance producer,
adjuster or continuing education course provider, instructor 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 and
D. Adjusters.
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Instructions:
This completed form is to be returned to the
Provider of the Course. No credit for the course will be given until the
Provider has received this document. The Provider will provide a copy of this
form to the Insurance Department by electronic media.
