CHAPTER 294
An Act to amend and reenact §§ 38.2-1866, 38.2-1868.1,
38.2-1869, 38.2-1872, 38.2-1873, and 38.2-1874 of the Code of Virginia,
relating to insurance agents; continuing education requirements.
[H 209]
Approved March 21, 2012
Be it enacted by the General Assembly of Virginia:
1. That §§ 38.2-1866, 38.2-1868.1, 38.2-1869,
38.2-1872, 38.2-1873, and 38.2-1874 of the Code of Virginia are amended and
reenacted as follows:
§ 38.2-1866. Continuing education requirements.
A. Every individual resident and nonresident (i) insurance
consultant, (ii) life and annuities insurance agent, (iii) health agent, (iv)
property and casualty insurance agent (v) personal lines agent, and (vi) title
insurance agent shall, on a biennial basis, furnish evidence as set forth in
this article that the continuing education requirements of this article have
been satisfied. As used in this article, the term "agent" shall be
construed to refer to any of the individual licensees referred to above.
B. Any agent who holds a life and annuities license or a
health agent license, or both, shall complete sixteen 16 hours of
relevant continuing education credits.
C. Any agent who holds a personal lines license or a property
and casualty license shall complete sixteen 16 hours of relevant
continuing education credits.
D. Any agent who holds a title agent license shall complete sixteen
16 hours of relevant continuing education credits.
E. Any Except as provided in subsection B and § 38.2-1871,
any agent who holds licenses from more than one category of licenses provided
above identified in subsection A shall complete twenty-four
24 hours of relevant continuing education credits with a minimum of eight
credit hours in each such category.
F. Of the total required credits for each biennium, two
three credit hours shall be in insurance ethics, which may include
insurance law and regulations applicable in Virginia.
G. Agents may receive no more than seventy-five 75
percent of their required credits from courses provided by insurance companies
or agencies. The Board, in its sole discretion, shall, at the time of course
approval, determine whether any particular course shall be considered to be
insurance company or agency sponsored, and shall require all course sponsors to
provide this information clearly and conspicuously to all those enrolling in
that course.
§ 38.2-1868.1. Proof of compliance; exemption or waiver.
A. As used in this article:
"Proof of compliance" shall mean all documents,
forms and fees specified by the Board for (i) filing proof of completion of
Board-approved continuing education courses for the appropriate number of hours
and for the appropriate content or (ii) filing proof of meeting the exemption
requirements set forth in subsection B or C of § 38.2-1871.
"Received by the Board or its administrator" shall
mean delivered into the possession of the Board or its administrator at the
business address of the Board's administrator.
B. Each agent holding one or more licenses subject to the
continuing education requirements of this article shall complete all continuing
education course, exemption, or waiver requirements and shall submit to the
Board or its administrator proof of compliance with or exemption from the
continuing education requirements in the form and manner required by the Board
by no later than December 31 November 30, or the next working
day if November 30 falls on a weekend, of each even-numbered year, and
shall submit to the Board or its
administrator proof of compliance with or
exemption from the continuing education requirements
in the form and manner required by
the Board.
C. Such proof of compliance must
be received by the Board or its
administrator by the close of business
on February 28 of the following year,
or the next working day thereafter if
February 28 falls on a weekend.
D. Agents shall be permitted
to submit proof of compliance for an
additional period of time, until the close
of business on March 31, or the
next working day thereafter if March 31
falls on a weekend, of such year
subject to payment by the agent, in
addition to any filing fee imposed by
the Board for timely filing of proof
of compliance, of a late filing penalty
of $250, payable to the Board in
such manner as may be prescribed by
the Board. No agent whose proof of
compliance is received during the extension
provided by this subdivision shall be
considered in compliance with the continuing
education requirements unless the filing fee
and the late filing penalty described
herein have been paid by the close
of business on March 31, or the
next working day thereafter if March 31
falls on a weekend.
After the March 31 deadline November
30, agents who have obtained the requisite continuing
education course credits in the time permitted
for obtaining such credits, but who have
failed to submit proof of compliance,
shall be provided a final opportunity
to submit the proof of compliance after
the Commission has issued notice of impending
termination of their licenses, if such
agents submit proof of compliance and
pay the filing fees and the $500
penalty as provided in subdivision D 1
of § 38.2-1869 within the 30 calendar
day notice period provided pursuant to
such subdivision failed to complete all continuing education
course, exemption, or waiver requirements or have failed to pay any required
fees shall be provided a final opportunity to complete such requirements,
provided proof of compliance is received by the Board or its administrator by
December 31, or the next working day thereafter if December 31 falls on a
weekend.
E D. Failure of an agent to furnish proof of
compliance by the applicable date specified in subsection B or C or
D of this section shall result in the imposition
of the penalties license termination as set forth
in § 38.2-1869.
F E. Agents seeking a waiver of some or all of
the course credit requirements for a biennium pursuant to § 38.2-1870
shall submit all documentation, forms, and fees specified by the Board so as to
be received by the Board or its administrator as set forth in § 38.2-1870.
G F. Any agent holding one or more licenses
subject to this article who fails to submit complete documentation showing
proof of compliance with continuing education requirements, as well as all
specified forms and fees, so as to be received by the Board or its administrator
by the close of business on the dates described in this section shall be deemed
to be in noncompliance with the requirements of this article.
G. All fees specified by the Board shall be nonrefundable
once received by the Board or its administrator, except that duplicate payments
may be refunded.
§ 38.2-1869. Failure to satisfy requirements; termination
of license.
A. Failure of an agent to satisfy the requirements of this
article within the time period specified in § 38.2-1868.1, either by obtaining
the continuing education credits required and furnishing evidence of same to
the Board or its administrator as required by this article, or by furnishing to
the Board acceptable evidence of exemption from the requirements of this
article, or by obtaining, in a manner prescribed by the Board pursuant to this
article, a waiver of the requirements for that biennium, shall result,
subsequent to notification by the Board to the Commission, in the
administrative termination of each license held by the agent for which the
requirement was not satisfied.
B. The Board shall, on or about a date six months prior to the
end of each biennium, provide a status report to each agent who has not yet fully
satisfied the requirements of this article for such biennium. Such report shall
inform the agent of his current compliance status for each license held that is
subject to this article, and the consequences associated with noncompliance,
and shall be sent by first-class mail to such agent at his last-known residence
address as shown in the Commission's records. Failure of an agent to receive
such notification shall not be grounds for contesting license termination.
C. The Board shall, no later
than 45 calendar days and no sooner
than 60 calendar days prior to the
end of each biennium, provide a status
report to each agent who has not
yet fully satisfied the requirements of
this article for such biennium. Such report
shall inform the agent of his current
compliance status for each license held
that is subject to this article, and
the consequences associated with noncompliance,
and shall be sent by first-class mail
to such agent at his last known
residence address as shown in the Commission's
records. Failure of an agent to receive
such notification shall not be grounds
for contesting license termination.
D. 1 No administrative termination pursuant to
this section shall become effective until the Commission has provided 30
calendar days' written notice of such impending termination to the agent by
first-class mail sent to the agent at the agent's last known residence address
as shown in the Commission's records. The notice period shall commence on the
date that the written notice is deposited in the United States mail and, if the
30th calendar day falls on a Saturday or Sunday weekend,
the end of the notice period shall be extended to the next business day.
Failure of an agent to receive such notification shall not be grounds for
contesting a license termination. Any agent who obtained the required number of
continuing education credits in the time permitted for obtaining such credits and
paid any required fees shall be permitted to submit proof of compliance
during the 30 calendar day notice period if the agent pays,
in addition to the filing fee established
by the Board for submission of proof
of compliance, a penalty of $500 to
the Board in the manner prescribed by
the Board; provided that such payment
and submission of proof of compliance
shall be received by the Board or
its administrator, in the form and manner
required by the Board, prior to the
end of the 30 calendar day notice
period.
2 D. Neither the Board, its administrator, nor
the Commission shall have the power to grant an agent additional time for
completing the continuing education credits required by § 38.2-1866, or
additional time for submitting proof of compliance as required by § 38.2-1868.1,
or additional time for seeking waivers or exemption pursuant to § 38.2-1870
or § 38.2-1871.
E. During the period of 30 calendar
days immediately following such notice from
the Commission period set forth in subsection C of § 38.2-1868.1,
the Board shall permit agents either to demonstrate to the satisfaction of the
Board that the agent had, in fact, timely submitted and the Board or its
administrator had received proof of compliance on or before the filing
deadlines set forth in § 38.2-1868.1 or to complete all continuing
education course, exemption, or waiver requirements and present proof of
compliance and payment of the prescribed penalty
and filing fee in accordance with the
procedure established in subdivision 1 of
this subsection.
3 F. During the 30 calendar day
notice period set forth in subsection C of § 38.2-1868.1,
the Board shall not be obligated to review or respond to any other submissions
except for submissions that prove that the records of the Board or its
administrator are incorrect and late filing submissions permitted pursuant to subdivision
1 of this subsection C of § 38.2-1868.1.
Subsequent to the expiration of such 30-day period, and prior
to providing to the Commission the record
of those agents who complied with the
requirements of this article, the Board shall
provide a reasonable additional period of time for processing of appeals
pursuant to § 38.2-1874. However, failure of an agent to provide written
notice of appeal in the form and manner required by the Board within 45 30
calendar days following the expiration of the 30-day period set forth
in subsection C of § 38.2-1868.1 shall be deemed a waiver by such
agent of the right to appeal the determination of noncompliance.
4 G. No more than 15 calendar days after the end
of such appeal period, the Board or its administrator shall provide to the
Commission a final updated record of those agents who complied with the
requirements of this article, whereupon the Commission shall administratively
terminate the licenses of those agents required to submit proof of compliance
and by whom proof of compliance was not submitted in a proper or timely manner.
Agents wishing to contest the Commission's action in terminating a license
shall adhere to the Commission's Rules of Practice and Procedure (5 VAC 5-20-10
et seq.) and the Rules of the Supreme Court of Virginia. Failure by the agent to
initiate such contest within 30 calendar days following the date of license
termination shall be deemed a waiver by the agent of the right to contest such
license termination.
E H. Pursuant to the requirements of subsection
C of § 38.2-1815, §§ 38.2-4806 and 55-525.19, respectively:
1. A resident variable contract agent whose life and annuities
insurance agent license is administratively terminated for failure to satisfy
the requirements of this article shall also have such variable contract license
administratively terminated by the Commission;
2. A resident agent holding a license as a surplus lines
broker whose property and casualty insurance agent license is administratively
terminated for failure to satisfy the requirements of this article shall also
have such surplus lines broker license administratively terminated by the
Commission; and
3. An agent holding a registration as a title settlement agent
whose title insurance agent license is administratively terminated for failure
to satisfy the requirements of this article shall also have such registration
as a title settlement agent administratively terminated by the Commission.
Any such license or registration so terminated may be applied
for again after the agent has obtained, respectively, a new life and annuities
insurance agent's license, a new property and casualty insurance agent's
license, or a new title insurance agent's license and appointment, if
appointment is required.
F. 1. Except as provided in
subdivision 2 of this subsection, no resident
agent whose license has been terminated
under the terms of this section shall
be permitted to make application for a
new license prior to the expiration of
a period of ninety calendar days from
the date of termination of such license.
No resident agent applying for a license
after termination of a previous license
pursuant to this section shall be issued
a license unless the agent has successfully
completed, subsequent to the end of the
biennium, the examination required by § 38.2-1817.
In such an event, the examination requirements
shall not be subject to waiver under
any circumstances, including those set forth
in § 38.2-1817.
2 I. A resident agent whose license or licenses
have been terminated under the terms of this section shall be permitted to make
application for new licenses prior to the expiration
of the 90-day period provided in this
subsection, provided that such agent (i) pays to the
Commission, in addition to any license
processing fees, an administrative penalty of
$1,000, which shall be paid into the
state treasury and credited to the fund
for the maintenance of the Bureau of
Insurance and (ii) has successfully completed, subsequent
to the end of the biennium, the examination required by § 38.2-1817. In
such an event, the examination requirements shall not be subject to waiver
under any circumstances, including those set forth in § 38.2-1817.
3 J. A nonresident agent whose license or
licenses have been terminated under the terms of this section and who is in
good standing in the person's state of residence shall be permitted to make
application for new licenses prior to the expiration
of the 90 calendar day period provided
in this subsection, provided that such
agent pays to the Commission, in addition
to any license processing fees, an administrative
penalty of $1,000, which shall be paid
into the state treasury and credited to
the fund for the maintenance of the
Bureau of Insurance. Nonresident agents who
furnish evidence in the form and manner
required by the Commission of their good
standing in their state of residence shall
not be required to complete the examination
required by § 38.2-1817, provided that
the insurance supervisory official of the
nonresident agent's state of residence will
grant similar exemptions to Virginia residents
seeking license renewal or reissue in
such state in the manner prescribed by § 38.2-1836.
G K. A resident or nonresident agent who
voluntarily surrenders his license without prejudice during a biennium or prior
to the expiration of the appeal period for that biennium as described in
subsection D F, and who has not provided proof of compliance for
such biennium, shall not be permitted to apply for a new license of the same
type until such agent has complied with the requirements of subsection F
of this section. Further, if such agent
chooses not to apply for a new
license under the terms of subdivision
F 2 or F 3 of this section,
such agent shall not be permitted to
obtain a new license of the same
type until the expiration of the same
90-day period applicable to agents whose
licenses are terminated pursuant to subsection
A of this section I or J.
H L. A resident agent whose license terminates
because, within 180 calendar days prior to the end of a biennium, or prior to
the expiration of the appeal period for that biennium as described in
subsection D F, such agent moves his residence to another state,
and who had not, prior to such relocation, provided proof of compliance for
such biennium shall not be permitted to apply for a new license of the same
type until such agent has complied with the requirements of subdivisions
F 1 and F 2 of this section.
Further, if the agent chooses not to
apply for a new license under the
terms of subdivision F 2 of this
section, such agent shall not be permitted
to obtain a new license of the
same type until the expiration of the
same 90-day period applicable to agents
whose licenses are terminated pursuant to
subsection A of this section subsection J.
I M. An insurance consultant who fails to renew
his insurance consultant license by the date specified in § 38.2-1840, but
who obtains a new insurance consultant license within 12 months following such
renewal date shall be treated, for purposes of determining exemption from
continuing education requirements pursuant to § 38.2-1871, as if such
insurance consultant license had been renewed in a timely manner.
§ 38.2-1872. Administrative duties of Board; transfer to
outside administrator.
A. The Board shall have the authority to transfer all or part
of its administrative duties to an outside administrator. The performance of
the administrator shall be confirmed at least annually by the Board and
appropriate corrective action shall be taken for any deficiencies. Such
administrator shall maintain records reflecting the continuing education status
of all licensed agents reporting credits to it, subject to the requirements of
this article.
B. The Board or its administrator shall, following the end of
each biennium and on a date and in a form acceptable to the Commission but in
no event later than fifteen calendar days following the end of the appeal
period provided by the Board pursuant to § 38.2-1869, provide to the
Commission a report of all licensees who satisfied the requirements of this
article for such biennium. The Board or its administrator shall not, however,
be required to include in such report those licensees exempt pursuant to
subsection A of § 38.2-1871. The administrative termination of licenses,
as required by subsection D C of § 38.2-1869 shall be
carried out by operation of law.
C. The Board or its administrator shall be provided such
information from the Commission's records as the Board may reasonably require
in order to carry out its duties, including, but not limited to, (i) requesting
and receiving from the Commission computer-generated reports, mailing labels,
or other computer-generated information containing the names, license
identification numbers, license types, and residence addresses of all licensees
subject to the requirements of this article; and (ii) direct on-line access to
such automated system data as the Commission may deem appropriate.
§ 38.2-1873. Continuing insurance education fees.
The continuing insurance education program established by this
article shall be self-supporting, and any costs incurred by the Commission,
administrator, or the Board or its members, including legal fees and other
legal expenses incurred during or as a result of the good faith execution of
their duties, shall be borne by the continuing insurance education fees paid by
agents, course sponsors, and course instructors, which fees, except for
duplicate payments, shall be nonrefundable upon receipt.
§ 38.2-1874. Continuing education program; plan of
operation; approval by Commission.
A. The Board shall submit to the Commission a plan of
operation that provides for the fair and nondiscriminatory administration of
the continuing insurance education program established pursuant to this
article. Such plan shall not become effective until approved by the Commission
in writing. The Board may, at any time, propose amendments to the plan of
operation, and such amendments shall not become effective until approved by the
Commission. The plan of operation shall:
1. Establish guidelines for the Board to utilize in adopting
procedures for exercising its powers and duties;
2. Establish guidelines for the Board to utilize in adopting
procedures for handling the assets of the continuing insurance education
program;
3. Establish guidelines for reimbursing members of the Board
for the necessary expenses incurred in the performance of their official duties
and for indemnifying members for all expenses and liabilities incurred as a
result of their serving as members of the Board;
4. Establish guidelines for determining places and times for meetings
of the Board;
5. Establish guidelines for adopting procedures for records to
be kept of all financial transactions of the Board and administrator;
6. Establish procedures for the election of Board officers;
7. Establish guidelines pursuant to which the Board may adopt
a reasonable means whereby any person aggrieved by an action of the Board or
administrator may appeal such action to the Board and, after written request,
be heard in person or by an authorized representative to review the grievance.
Guidelines may include additional levels of appeal other than those set forth
herein, but shall provide, at a minimum, that (i) if the Board or its
administrator fails to grant or reject the grievance within 30 15
calendar days after it is made, the person filing the grievance may proceed in
the same manner as if his grievance had been rejected; (ii) any person
adversely affected by the action of the Board or its administrator on such
request may, within 30 15 calendar days after written notice of
the action, make a written request for informal review by the Bureau of
Insurance, which shall affirm or reverse the action upon not less than 10
calendar days' written notice to the person and to the Board or its
administrator; and (iii) any person adversely affected by the action of the
Bureau of Insurance on such request may, within 30 15 calendar
days after written notice of the action, appeal to the Commission pursuant to
the Commission's "Rules of Practice and Procedure." The Commission
may affirm or reverse the action upon not less than 10 calendar days' written
notice to the person and to the Board or its administrator; and
8. Contain guidelines for the Board to utilize in adopting
additional provisions necessary or proper for the execution of the powers and
duties of the Board including but not limited to (i) program requirements and
approved programs of study; (ii) qualifications and responsibilities of course
instructors; (iii) management and record-keeping responsibilities; (iv) fee
schedules and filing requirements; and (v) course refund policies and
procedures.
B. If the Commission disapproves all or any part of the
proposed plan of operation or amendment thereto, the Board shall within 15
calendar days submit for review an appropriate revised plan of operation or
amendment thereto. If the Board fails to do so, the Commission shall promulgate
a plan of operation or an amended plan of operation. The plan of operation or
amended plan of operation approved or promulgated by the Commission shall
become effective and operational upon order of the Commission.
C. A regular meeting of the Board shall be held at least
annually at such time, date, and place approved by the Board. Special meetings
may be called at any time by the chairman. Notices of all regular and special
meetings shall be sent to each person serving as a representative on the Board
or a subcommittee of the Board and to the Commission. Each notice shall state
the purpose of the meeting and include any proposed changes in rules or
procedures. Any such meeting notices shall be given in such form as may be
acceptable to the Board at least 20 calendar days prior to the date of the
meeting.
D. The books of account, records, reports and other documents
of the Board and its administrator shall be open to the Commission for
examination at all reasonable hours.
E. There shall be no liability on the part of and no cause of
action shall arise against any member of the Board, the Board, the Board's
agents or employees, or the Commission or its representatives for any action
taken or statement made by them in good faith in the performance of their
powers and duties under this article.
2. That the provisions of this act shall become
effective on January 1, 2013.
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