SB-1476, As Passed House, December 18, 2008

SUBSTITUTE FOR

SENATE BILL NO. 1476

     A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending section 1204a (MCL 500.1204a), as amended by 2006 PA

442.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1204a. (1) To qualify as a registered insurance agent

program of study, the program of study shall meet all of the

following criteria:

     (a) Be conducted through an educational institution offering

home study courses that has been in existence for not less than 5

years, by an insurance trade association, by an authorized insurer

as provided in subsection (2), or by an educational institution

listed in the state board of education directory of institutions of

higher learning.

     (b) Except as provided in subsection (2), provide for a

minimum number of hours of classroom instruction or its equivalent

in home study or online courses as follows:

     (i) In the case of For a program of study for health insurance

agents, 14 producers, 20 hours of instruction. on the principles of

health insurance and 6 hours of instruction on the requirements of

the insurance laws of this state.

     (ii) In the case of For a program of study for life insurance

agents producers, 20 hours of instruction. on the principles of

life insurance and 6 hours of instruction on the requirements of

the insurance laws of this state.

     (iii) In the case of For a combined program of study for life

and health insurance agents, 14 producers, 40 hours of instruction.

on the principles of health insurance, 20 hours of instruction on

the principles of life insurance, and 6 hours of instruction on the

requirements of the insurance laws of this state.

     (iv) In the case of For a program of study for property and

casualty insurance agents producers and solicitors, 12 20 hours of

instruction. on the principles of property insurance, 6 hours of

instruction on the requirements of the insurance laws of this

state, and 22 hours of instruction on the principles of liability

insurance.

     (v) For a program of study for casualty insurance producers

and solicitors, 20 hours of instruction.

     (vi) For a program of study for personal lines producers, 20

hours of instruction.

     (vii) For a program of study for property and casualty

producers and solicitors, 40 hours of instruction. A program of

study completed under this subparagraph satisfies the program of

study requirements for personal lines producers and solicitors.

     (c) Include instruction in ethical practices in the marketing

and selling of insurance.

     (d) Instruction shall be given only by individuals who meet

the qualifications required by the commissioner. The commissioner,

after consulting the insurance agent education advisory council,

shall promulgate rules prescribing the criteria which that must be

met by a person in order to render instruction in a registered

insurance agent program of study.

     (2) An authorized insurer may conduct that portion of the

minimum number of hours of instruction under subsection (1) as the

commissioner deems considers appropriate. Any combination of

classroom, online, or self-study hours may be used in satisfying

the minimum number of hours of instruction under subsection (1).

     (3) The commissioner shall promulgate rules prescribing the

subject matter that a program of study must possess to qualify for

registration under this section.

     (4) The commissioner may make recommendations for improvements

in course materials as deemed considered necessary by the

commissioner. The commissioner may, after notice and opportunity

for a hearing, withdraw the registration of a program of study

which that does not maintain reasonable standards as determined by

the commissioner for the protection of the public.

     Enacting section 1. This amendatory act takes effect 6 months

after the date it is enacted into law.