S.B. 115 Enrolled

1

CONTINUING EDUCATION IN INSURANCE
2 2006 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Thomas V. Hatch
5 House Sponsor: LaVar Christensen
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Insurance Code to address continuing education requirements.
10 Highlighted Provisions:
11 This bill:
12 . provides different continuing education requirements for title insurance producers
13 who have been licensed 20 or more consecutive years;
14 . provides that an attorney meeting requirements for the Utah State Bar meets the
15 continuing education requirements for certain title insurance licenses;
16 . requires continuing education documentation to be retained for two years; and
17 . makes technical changes.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 31A-23a-202, as last amended by Chapter 219, Laws of Utah 2005
25 31A-26-206, as last amended by Chapter 219, Laws of Utah 2005
26
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 31A-23a-202 is amended to read:
29 31A-23a-202. Continuing education requirements.

30 (1) [The] Pursuant to this section, the commissioner shall by rule prescribe the
31 continuing education requirements for a producer and a consultant.
32 (2) (a) The commissioner may not state a continuing education requirement in terms of
33 formal education.
34 (b) The commissioner may state a continuing education requirement in terms of
35 classroom hours, or their equivalent, of insurance-related instruction received.
36 (c) Insurance-related formal education may be a substitute, in whole or in part, for
37 classroom hours, or their equivalent, required under Subsection (2)(b).
38 (3) (a) The commissioner shall impose continuing education requirements in
39 accordance with a two-year licensing period in which the licensee meets the requirements of
40 this Subsection (3).
41 (b) (i) Except as provided in [Subsection (3)(b)(iii)] this section, the continuing
42 education requirements shall require:
43 (A) that a licensee complete 24 credit hours of continuing education for every two-year
44 licensing period;
45 (B) that three of the 24 credit hours described in Subsection (3)(b)(i)(A) be ethics
46 courses; and
47 (C) that the licensee complete at least half of the required hours through classroom
48 hours of insurance-related instruction.
49 (ii) The hours not completed through classroom hours in accordance with Subsection
50 (3)(b)(i)(C) may be obtained through:
51 (A) home study;
52 (B) video recording;
53 (C) experience credit; or
54 (D) other methods provided by rule.
55 (iii) (A) Notwithstanding Subsections (3)(b)(i)(A) and (B), a title insurance producer is
56 required to complete 12 credit hours of continuing education for every two-year licensing
57 period, with three of the credit hours being ethics courses unless the title insurance producer

58 has been licensed in this state as a title insurance producer for 20 or more consecutive years.
59 (B) If a title insurance producer has been licensed in this state as a title insurance
60 producer for 20 or more consecutive years, the title insurance producer is required to complete
61 six credit hours of continuing education for every two-year licensing period, with three of the
62 credit hours being ethics courses.
63 (C) Notwithstanding Subsection (3)(b)(iii)(A) or (B), a title insurance producer is
64 considered to have met the continuing education requirements imposed under Subsection
65 (3)(b)(iii)(A) or (B) if the title insurance producer:
66 (I) is an active member in good standing with the Utah State Bar;
67 (II) is in compliance with the continuing education requirements of the Utah State Bar;
68 and
69 (III) if requested by the department, provides the department evidence that the title
70 insurance producer complied with the continuing education requirements of the Utah State Bar.
71 (c) A licensee may obtain continuing education hours at any time during the two-year
72 licensing period.
73 (d) (i) Beginning May 3, 1999, a licensee is exempt from continuing education
74 requirements under this section if:
75 (A) the licensee was first licensed before April 1, 1970;
76 (B) the licensee requests an exemption from the department; and
77 (C) the department approves the exemption.
78 (ii) If the department approves the exemption under Subsection (3)(d)(i), the licensee is
79 not required to apply again for the exemption.
80 (e) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
81 commissioner shall, by rule:
82 (i) publish a list of insurance professional designations whose continuing education
83 requirements can be used to meet the requirements for continuing education under Subsection
84 (3)(b); and
85 (ii) authorize continuing education providers and professional producer or consultant

86 associations to:
87 (A) offer qualified programs for all license types and lines of authority on a
88 geographically accessible basis; and
89 (B) collect reasonable fees for funding and administration of the continuing education
90 program, subject to the review and approval of the commissioner.
91 (iii) The fees permitted under Subsection (3)(e)(ii)(B) that are charged for attendance at
92 a professional producer or consultant association program may be less for an association
93 member, based on the member's affiliation expense, but shall preserve the right of a
94 nonmember to attend without affiliation.
95 (4) The commissioner shall approve continuing education providers and continuing
96 education courses [which] that satisfy the requirements of this section.
97 (5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
98 commissioner shall by rule set the processes and procedures for continuing education provider
99 registration and course approval.
100 (6) The requirements of this section apply only to producers or consultants who are
101 natural persons.
102 (7) A nonresident producer or consultant is considered to have satisfied this state's
103 continuing education requirements if the nonresident producer or consultant satisfies the
104 nonresident producer's or consultant's home state's continuing education requirements for a
105 licensed insurance producer or consultant.
106 (8) A producer or consultant subject to this section shall keep documentation of
107 completing the continuing education requirements of this section for two years after the end of
108 the two-year licensing period to which the continuing education applies.
109 Section 2. Section 31A-26-206 is amended to read:
110 31A-26-206. Continuing education requirements.
111 (1) [The] Pursuant to this section, the commissioner shall by rule prescribe continuing
112 education requirements for each class of license under Section 31A-26-204 .
113 (2) (a) The commissioner shall impose continuing education requirements in

114 accordance with a two-year licensing period in which the licensee meets the requirements of
115 this Subsection (2).
116 (b) (i) Except as provided in Subsection (2)(b)(iii), the continuing education
117 requirements shall require:
118 (A) that a licensee complete 24 credit hours of continuing education for every two-year
119 licensing period;
120 (B) that three of the 24 credit hours described in Subsection (2)(b)(i)(A) be ethics
121 courses; and
122 (C) that the licensee complete at least half of the required hours through classroom
123 hours of insurance-related instruction.
124 (ii) The hours not completed through classroom hours in accordance with Subsection
125 (2)(b)(i)(C) may be obtained through:
126 (A) home study;
127 (B) video recording;
128 (C) experience credit; or
129 (D) other methods provided by rule.
130 (iii) Notwithstanding Subsections (2)(b)(i)(A) and (B), a title insurance adjuster is
131 required to complete 12 credit hours of continuing education for every two-year licensing
132 period, with three of the credit hours being ethics courses.
133 (c) A licensee may obtain continuing education hours at any time during the two-year
134 licensing period.
135 (d) (i) Beginning May 3, 1999, a licensee is exempt from the continuing education
136 requirements of this section if:
137 (A) the licensee was first licensed before April 1, 1970;
138 (B) the licensee requests an exemption from the department; and
139 (C) the department approves the exemption.
140 (ii) If the department approves the exemption under Subsection (2)(d)(i), the licensee is
141 not required to apply again for the exemption.

142 (e) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
143 commissioner shall by rule:
144 (i) publish a list of insurance professional designations whose continuing education
145 requirements can be used to meet the requirements for continuing education under Subsection
146 (2)(b); and
147 (ii) authorize professional adjuster associations to:
148 (A) offer qualified programs for all classes of licenses on a geographically accessible
149 basis; and
150 (B) collect reasonable fees for funding and administration of the continuing education
151 programs, subject to the review and approval of the commissioner.
152 (f) (i) The fees permitted under Subsection (2)(e)(ii)(B) that are charged to fund and
153 administer a program shall reasonably relate to the costs of administering the program.
154 (ii) Nothing in this section shall prohibit a provider of continuing education programs
155 or courses from charging fees for attendance at courses offered for continuing education credit.
156 (iii) The fees permitted under Subsection (2)(e)(ii)(B) that are charged for attendance
157 at an association program may be less for an association member, based on the member's
158 affiliation expense, but shall preserve the right of a nonmember to attend without affiliation.
159 (3) The requirements of this section apply only to licensees who are natural persons.
160 (4) The requirements of this section do not apply to members of the Utah State Bar.
161 (5) The commissioner shall designate courses that satisfy the requirements of this
162 section, including those presented by insurers.
163 (6) A nonresident adjuster is considered to have satisfied this state's continuing
164 education requirements if:
165 (a) the nonresident adjuster satisfies the nonresident producer's home state's continuing
166 education requirements for a licensed insurance adjuster; and
167 (b) on the same basis the nonresident adjuster's home state considers satisfaction of
168 Utah's continuing education requirements for a producer as satisfying the continuing education
169 requirements of the home state.

170 (7) A licensee subject to this section shall keep documentation of completing the
171 continuing education requirements of this section for two years after the end of the two-year
172 licensing period to which the continuing education requirement applies.