September 10, 2008, Introduced by Senators BARCIA, THOMAS, SANBORN and GILBERT and referred to the Committee on Economic Development and Regulatory Reform.
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 a program of study for health
insurance
agents,
14 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 a program of study for life
insurance
agents,
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 a combined program of study for
life and
health
insurance agents, 14 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 a program of study for property and
casualty
insurance agents and solicitors, 12 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. Provide
for a minimum of 20 hours of instruction per line of insurance as
described in section 1206(1).
(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.