1749. The department shall require all new applicants for license
as a property broker-agent, casualty broker-agent, limited lines
automobile insurance agent, personal lines broker-agent, life-only
agent, or accident and health agent to meet prelicensing education
standards as follows:
(a) Require a minimum of 20 hours of prelicensing study as a
prerequisite to qualification for a property broker-agent license.
The curriculum for satisfying this requirement shall be approved by
the curriculum board and submitted to the commissioner for final
approval. Any additions to the minimum requirements provided by this
section shall be approved by the curriculum board pursuant to Section
1749.1 and certified by the department.
(b) Require a minimum of 20 hours of prelicensing study as a
prerequisite to qualification for a casualty broker-agent license.
The curriculum for satisfying this requirement shall be approved by
the curriculum board and submitted to the commissioner for final
approval. Any additions to the minimum requirements provided by this
section shall be approved by the curriculum board pursuant to Section
1749.1 and certified by the department.
(c) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for a personal lines broker-agent
license. The curriculum for satisfying this requirement shall be
approved by the curriculum board and submitted to the commissioner
for final approval. Any additions to the minimum requirements
provided by this section shall be approved by the curriculum board
pursuant to Section 1749.1 and certified by the department.
(d) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for a life-only agent license. The
curriculum for satisfying this requirement shall be approved by the
curriculum board and submitted to the commissioner for final
approval. Any additions to the minimum requirements provided by this
section shall be approved by the curriculum board pursuant to Section
1749.1 and certified by the department.
(e) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for a limited lines automobile
insurance agent license. The curriculum for satisfying this
requirement shall be approved by the curriculum board and submitted
to the commissioner for final approval. Any additions to the minimum
requirements under this section shall be approved by the curriculum
board pursuant to Section 1749.1 and certified by the department.
(f) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for an accident and health insurance
agent license. The curriculum for satisfying this requirement shall
be approved by the curriculum board and submitted to the commissioner
for final approval. Any additions to the minimum requirements under
this section shall be approved by the curriculum board pursuant to
Section 1749.1 and certified by the department. This curriculum shall
also include instruction in workers' compensation and general
principles of employers' liability.
(g) In addition to the 20 hours of prelicensing education required
to qualify for a license as a property broker-agent, casualty
broker-agent, personal lines broker-agent, a life-only agent, or an
accident and health agent, or the 20 hours of prelicensing education
required to qualify for a license as a limited lines automobile
insurance agent, the department shall require 12 hours of study on
ethics and this code. Where an applicant seeks a license for more
than one of the following license types: a fire and casualty
broker-agent license, a personal lines broker-agent license, a
life-only license, or an accident and health license, the applicant
shall only be required to complete one 12-hour course on ethics and
this code. The curriculum for satisfying this requirement shall be
approved by the curriculum board and submitted to the commissioner
for final approval.
(h) An applicant for a life-only agent license, an accident and
health license, a personal lines broker-agent license, or a limited
lines automobile insurance agent license, who is currently licensed
as a nonresident in this state shall be required to complete only the
course of study on ethics and this code, as required by this
section. Additionally, any applicant for that license holding one or
more of the designations specified in subdivisions (a) to (p),
inclusive, of Section 1749.4 shall be exempted from any requirement
for courses in general insurance that would otherwise be a condition
of issuance of the license.
(i) An applicant for a property broker-agent or casualty
broker-agent license who is currently licensed as a nonresident in
this state shall be required to complete only the course of study on
ethics and this code, as required by subdivision (g). Additionally,
any applicant for a license holding one or more of the designations
specified in subdivisions (a) to (p), inclusive, of Section 1749.4,
shall be exempted from any requirement for courses in general
insurance that would otherwise be a condition of issuance of a
license.
(j) An applicant for a property broker-agent or casualty
broker-agent license or both who is licensed as a personal lines
agent shall complete a minimum of 20 hours of prelicensing study as a
prerequisite for each of these licenses. The curriculum for
satisfying this requirement shall be approved by the curriculum board
and submitted to the commissioner for final approval. The applicant
shall not be required to repeat any prelicensing requirements
completed as a prerequisite to being licensed as a personal lines
agent.
(k) Review and approval of prelicensing courses not conducted in a
classroom, as referenced in subdivisions (a) to (j), inclusive,
shall include an evaluation of the safeguards in place to ensure that
the student completing the course is the person enrolled in the
course, methods used to monitor the student's attendance are
adequate, methods for the student to interact with the entity
providing the training exist, and methods used to record the times
spent completing the course are adequate.
(l) Prelicensing certificates of completion expire three years
from the completion date of the course, whether or not a license is
issued.
1749.01. Sections 1749 and 1749.3 shall not apply to a life agent
who is limited by the terms of a written agreement with the insurer,
which filed on that life agent's behalf a notice of appointment with
the commissioner, to transact only specific life insurance policies
or annuities having an initial face amount of fifteen thousand
dollars ($15,000) or less that are designated by the purchaser for
the payment of funeral and burial expenses. The commissioner may
require the insurer appointing those life agents to certify as to the
limitations of the agents' representation.
1749.02. "Twenty-four hour coverage" is the joint issuance of a
workers' compensation policy with a disability insurance policy,
health care service plan contract, or other medical insurance
coverage for nonoccupational injuries and illnesses. This product
shall not include a life insurance policy.
1749.1. (a) The commissioner shall appoint a curriculum board
consisting of representatives of insurance agents, brokers, and life
agents trade associations and representatives of insurance companies
and consumer groups to develop the prelicensing and continuing
education curriculum, including a list of preapproved courses of
study, including courses of study for professional designations which
would satisfy the requirements of this article. The curriculum board
shall develop or recommend courses of study covering all lines of
insurance to be sold under each license including, but not limited
to, any special products such as long-term care insurance, Medi-gap
policies, disability insurance products, and course study on ethics
and pertinent sections of this code. The curriculum developed and the
courses of study approved by the board shall be submitted to the
commissioner for final approval.
(b) The curriculum board shall also develop standards for
providers and instructors of prelicensing and continuing education
courses, programs, and seminars, which standards shall be approved by
the board and submitted to the commissioner for final approval. The
curriculum board may approve standards for courses in business
management practices which may consist of up to 25 percent of the
agent or broker requirements for license renewal. No prelicensing or
continuing education course shall include sales training,
motivational training, self-improvement training, or training offered
by insurers or agents regarding new products or programs.
(c) For purposes of applying subdivision (b), courses in "business
management practices" shall consist of the following subject matter:
(1) Accounting and financial management, including trust account
maintenance, reconciliation and auditing, financial statements,
business budgeting, income and expense ratios, banking and investment
practices, and business perpetuation and planning.
(2) Information and database management, including recordkeeping,
privacy law, and other legal requirements covering the use of
information.
(3) Human resource management, including employee compliance
supervision, recruitment, training, and licensing.
(4) Customer service management, consisting of methods to improve
handling of consumer inquiries and complaints.
(5) Communication skills, consisting of methods to improve writing
and verbal skills for communication with clients, employees,
insurance carriers, claims departments, and regulators.
(d) Whenever the commissioner has reasonable cause to believe, and
determines after public hearing, that any approved course, program
of instruction, or seminar is being conducted so as to fail to meet
the commissioner's prelicensing or continuing education curriculum,
or any provider or instructor for any course, program, or seminar has
failed to comply with the commissioner's standards, the commissioner
may make and serve upon the provider or instructor of that course,
program, or seminar an order or orders rescinding approval for that
provider, course, program, or seminar, or imposing fines and
penalties on that provider, or both. The amount of any fines and
penalties shall not exceed the amounts set forth in Section 1748, and
shall be based on the criteria for assessing penalties specified in
that section. No credit towards meeting the requirements of this
article shall be granted any applicant or licensee for completion of
a course, program, or seminar after the effective date of any order
rescinding approval for that course, program, or seminar. The
commissioner shall serve notice of hearing required by this section
upon the provider or instructor of the course, program, or seminar,
stating the time and place therefor, and the grounds upon which his
or her order is made. The hearing shall occur not less than 30 nor
more than 60 days after notice is served.
(e) The commissioner may impose monetary penalties for minor
instances of noncompliance with the standards established pursuant to
this article, such as late course roster submissions and late course
presentation schedules. The monetary penalties shall not exceed the
amounts of the fees established pursuant to Section 1751.1. The
commissioner shall adopt regulations to establish the monetary
penalties to be levied against providers for late filings and other
minor instances of noncompliance with this article and Article 6.5 of
Subchapter 1 of Chapter 5 of Title 10 of the California Code of
Regulations.
1749.2. The purpose of Sections 1749.3 to 1749.6, inclusive, is to
establish requirements and standards for continuing education
programs for persons licensed as fire and casualty broker-agents and
life agents.
Sections 1749.3 to 1749.6, inclusive, shall not apply to either
(a) those persons holding resident licenses for any kind or kinds of
insurance for which an examination is not required by the law of this
state, nor shall it apply to any such limited or restricted license
as the commissioner may exempt or (b) licensed nonresident agents or
brokers who comply with the continuing education requirements of
their state of residence.
1749.3. An individual licensed as a life-only agent or an accident
and health agent and also licensed as a property or casualty
broker-agent, or an individual only licensed as a property or
casualty broker-agent, shall complete those courses, programs of
instruction, or seminars approved by the commissioner for the type of
license held. Completion of specified product training required in
subdivision (d) of Section 1749.33, subdivision (b) of Section
1749.8, and paragraph (4) of subdivision (a) of Section 10234.93 may
result in the completion of more than the minimum of required
continuing education hours. The minimum number of hours required is
as follows:
(a) Any licensee, as specified in this section, shall
satisfactorily complete 24 hours of instruction prior to renewal of
the license. These hours of instruction may be completed at any time
prior to renewal of the license.
(b) An individual licensed as a property broker-agent or casualty
broker-agent and as a life-only agent or an accident and health agent
shall satisfy the requirements of this section by demonstrating
completion of the courses, programs of instruction, or seminars
approved by the commissioner for any of the license types listed in
this section.
(c) A licensee shall not be required to comply with the
requirements of this article if the licensee submits proof
satisfactory to the commissioner that he or she has been a licensee
in good standing for 30 continuous years in this state and is 70
years of age or older. This exemption shall not apply to those
individuals licensed for the first time on or after January 1, 2010.
1749.31. (a) An individual licensed as a personal lines
broker-agent shall complete required continuing education courses,
programs of instruction, or seminars approved by the commissioner.
The personal lines broker-agent shall complete 24 hours during each
two-year license term as defined in subdivision (d) of Section
1625.5.
(b) An individual licensed as a personal lines broker-agent and as
a life-only agent or accident and health agent shall satisfy the
requirements of this section by satisfactorily completing 24 hours of
instruction prior to renewal of the license.
1749.32. (a) An individual licensed as a limited lines automobile
insurance agent shall complete required continuing education courses,
programs of instruction, or seminars approved by the commissioner.
The minimum number of hours required is 20 hours per license term
prior to the renewal of the license.
(b) An individual licensed as a limited automobile insurance agent
and as a life-only agent or accident and health agent shall satisfy
the requirements of this section by satisfactorily completing 24
hours of instruction prior to renewal of the license.
1749.33. (a) A life-only agent licensee shall satisfactorily
complete 24 hours of instruction prior to renewal of the license.
These hours of instruction may be completed at any time prior to
renewal of the license.
(b) An accident and health agent licensee shall satisfactorily
complete 24 hours of instruction prior to renewal of the license.
These hours of instruction may be completed at any time prior to
renewal of the license.
(c) An agent licensed as both a life-only agent and as an accident
and health agent shall satisfactorily complete a total of 24 hours
of instruction prior to renewal of the license. These hours of
instruction may be completed at any time prior to renewal of the
license.
(d) Any accident and health agent who wishes to sell 24-hour care
coverage, as defined in Section 1749.02, shall complete a course,
program of instruction, or seminar of an approved continuing
education provider on workers' compensation and general principles of
employer liability, which shall be completed by examination approved
by the commissioner as part of the continuing education course,
program of instruction, or seminar prior to selling this coverage.
The required number of instruction hours shall be equal to but no
greater than that required by the curriculum board for the
prelicensing requirements of a fire and casualty broker-agent on
these subjects. For resident licensees, this requirement shall count
toward the licensee's continuing education requirement, but may still
result in completing more than the minimum number of continuing
education hours set forth in this section. Nothing in this section
shall be deemed to allow an accident and health agent to satisfy the
obligations set forth in this section by other than a proctored
examination administered or approved by the department.
1749.4. The courses or programs of instruction successfully
completed that shall be deemed to meet the standards for continuing
educational requirements, and the number of classroom hours for which
they are equivalent, are as follows:
(a) Any part of the Life Underwriter Training Council Fellow
(LUTCF) program totaling 30 hours for the life-only license and the
accident and health license.
(b) Any part of the Chartered Life Underwriter (CLU) curriculum
totaling 30 hours for the life-only license and the accident and
health license.
(c) Any part of the Accredited Advisor in Insurance (AAI) program
totaling 25 hours for the fire casualty broker-agent license.
(d) Any part of the Chartered Property Casualty Underwriter (CPCU)
program totaling 30 hours for the fire casualty broker-agent
license.
(e) Any part of the Certified Insurance Counselor (CIC) program
totaling 25 hours for the life-only or accident health agent license
and the fire casualty broker-agent license.
(f) Any part of the Certified Employee Benefit Specialists (CEBS)
program totaling 25 hours for the life-only license and the accident
and health license.
(g) Any part of the Chartered Financial Consultant (ChFC) program
totaling 30 hours for the life-only license.
(h) Any part of the Certified Financial Planner (CFP) program
totaling 30 hours for the life-only license.
(i) Any part of the Fellow, Life Management Institute (FLMI)
program totaling 30 hours for the life-only license and the accident
and health license.
(j) Any part of the Health Insurance Associate (HIA) program
totaling 25 hours for the accident and health license.
(k) Any part of the Registered Employee Benefits Consultant (REBC)
program totaling 30 hours for the accident and health license.
(l) Any part of the Registered Health Underwriter (RHU) program
totaling 30 hours for the accident and health license.
(m) Any part of the Associate in Risk Management (ARM) program
totaling 30 hours for the fire casualty broker-agent license.
(n) Any insurance-related course approved by the curriculum board
and the commissioner taught by an accredited college or university
per credit hour granted totaling 15 hours.
(o) Any course or program of instruction or seminar developed or
sponsored by an authorized insurer, recognized agents' association,
or insurance trade association, or any independent program of
instruction shall, if approved by the curriculum board and the
commissioner, qualify for the equivalency of the number of classroom
hours assigned thereto by the curriculum board and the commissioner.
(p) Any correspondence course approved by the curriculum board and
the commissioner shall qualify for the equivalency of the number of
classroom hours assigned thereto by the commissioner.
1749.5. (a) A person teaching any approved course of instruction or
lecturing at any approved seminar shall qualify for the same number
of classroom hours as would be granted to a person taking and
successfully completing that course, seminar, or program, except that
such person shall qualify for those classroom hours only once each
license term for each course, seminar, or program.
(b) Excess classroom hours accumulated during any one-year period
may be carried forward to the next year.
(c) For good cause shown, the commissioner may grant an extension
of time during which the requirements imposed by this article may be
completed, but that extension of time shall not exceed the period of
one year.
(d) Every person subject to this article shall furnish, in a form
satisfactory to the commissioner, written certification as to the
courses, programs, or seminars of instruction taken and successfully
completed by that person.
(e) Any education provider whose self-study courses have been
approved by the department shall not count its own self-study courses
towards its continuing education requirement for a license issued
under this chapter.
1749.6. Any person failing to meet the requirements imposed by
Section 1749.3 or 1749.31, and who has not been granted an extension
of time within which to comply by the commissioner shall have his or
her license automatically terminated until the time that the person
demonstrates to the satisfaction of the commissioner that he or she
has complied with all of the requirements of this article and all
other laws applicable thereto. Where a person cannot perform the
requirements of this article due to a disability or inactivity due to
special circumstances, the commissioner shall provide a procedure
for the person to place his or her license on inactive status until
the time that the person demonstrates to the satisfaction of the
commissioner that he or she has complied with or made up all of the
requirements of this article for the period of disability or
inactivity.
1749.7. The commissioner may, pursuant to Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, adopt reasonable rules and regulations necessary for
the convenient administration of this article.
1749.8. (a) Effective January 1, 2005, every life agent who sells
annuities shall satisfactorily complete eight hours of training prior
to soliciting individual consumers in order to sell annuities.
(b) Effective January 1, 2005, every life agent who sells
annuities shall satisfactorily complete four hours of training every
two years prior to license renewal. For resident licensees, this
requirement shall count toward the licensee's continuing education
requirement, but may still result in completing more than the minimum
number of continuing education hours set forth in this section.
(c) The training required by this section shall be approved by the
commissioner and shall consist of topics related to annuities, and
California law, regulations, and requirements related to annuities,
prohibited sales practices, the recognition of indicators that a
prospective insured may lack the short-term memory or judgment to
knowingly purchase an insurance product, and fraudulent and unfair
trade practices. Subject matter determined by the commissioner to be
primarily intended to promote the sale or marketing of annuities
shall not qualify for credit towards the training requirement. Any
course or seminar that is disapproved under the provisions of this
section shall be presumed invalid for credit towards the training
requirement of this section unless it is approved in writing by the
commissioner.
(d) The training requirements set forth in this section shall not
apply to nonresident agents representing an insurer that is a direct
response provider.
For the purposes of this section, "direct response provider" means
an insurer that meets each of the following criteria:
(1) The insurer does not initiate telephone contact with insureds
or prospective insureds.
(2) Agents of the insurer speak with insureds and prospective
insureds only by telephone, and at the request of the insureds or
prospective insureds.
(3) Agents of the insurer are assigned to speak with insureds or
prospective insureds on a random basis, when contacted.
(4) Agents of the insurer are salaried and do not receive
commissions for sales or referrals.
1749.85. (a) The curriculum committee shall, in 2006, make
recommendations to the commissioner to instruct fire and casualty
broker-agents and personal lines broker-agents and applicants for
fire and casualty broker-agent and personal lines broker-agent
licenses in proper methods of estimating the replacement value of
structures, and of explaining various levels of coverage under a
homeowners' insurance policy. Each provider of courses based upon
this curriculum shall submit its course content to the commissioner
for approval.
(b) A person who is not an insurer underwriter or actuary or other
person identified by the insurer, or a licensed fire and casualty
broker-agent, personal lines broker-agent, contractor, or architect
shall not estimate the replacement value of a structure, or explain
various levels of coverage under a homeowners' insurance policy.
(c) This section shall not be construed to preclude licensed
appraisers, contractors and architects from estimating replacement
value of a structure.
(d) However, if the Department of Insurance, by adopting a
regulation, establishes standards for the calculation of estimates of
replacement value of a structure by appraisers, then on and after
the effective date of the regulation a real estate appraiser's
estimate of replacement value shall be calculated in accordance with
the regulation.
1749.9. Nothing in this article shall require any person exempted
from licensure by Section 1634 or 1635 to hold a license as required
by Section 1631.
1749. The department shall require all new applicants for license
as a property broker-agent, casualty broker-agent, limited lines
automobile insurance agent, personal lines broker-agent, life-only
agent, or accident and health agent to meet prelicensing education
standards as follows:
(a) Require a minimum of 20 hours of prelicensing study as a
prerequisite to qualification for a property broker-agent license.
The curriculum for satisfying this requirement shall be approved by
the curriculum board and submitted to the commissioner for final
approval. Any additions to the minimum requirements provided by this
section shall be approved by the curriculum board pursuant to Section
1749.1 and certified by the department.
(b) Require a minimum of 20 hours of prelicensing study as a
prerequisite to qualification for a casualty broker-agent license.
The curriculum for satisfying this requirement shall be approved by
the curriculum board and submitted to the commissioner for final
approval. Any additions to the minimum requirements provided by this
section shall be approved by the curriculum board pursuant to Section
1749.1 and certified by the department.
(c) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for a personal lines broker-agent
license. The curriculum for satisfying this requirement shall be
approved by the curriculum board and submitted to the commissioner
for final approval. Any additions to the minimum requirements
provided by this section shall be approved by the curriculum board
pursuant to Section 1749.1 and certified by the department.
(d) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for a life-only agent license. The
curriculum for satisfying this requirement shall be approved by the
curriculum board and submitted to the commissioner for final
approval. Any additions to the minimum requirements provided by this
section shall be approved by the curriculum board pursuant to Section
1749.1 and certified by the department.
(e) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for a limited lines automobile
insurance agent license. The curriculum for satisfying this
requirement shall be approved by the curriculum board and submitted
to the commissioner for final approval. Any additions to the minimum
requirements under this section shall be approved by the curriculum
board pursuant to Section 1749.1 and certified by the department.
(f) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for an accident and health insurance
agent license. The curriculum for satisfying this requirement shall
be approved by the curriculum board and submitted to the commissioner
for final approval. Any additions to the minimum requirements under
this section shall be approved by the curriculum board pursuant to
Section 1749.1 and certified by the department. This curriculum shall
also include instruction in workers' compensation and general
principles of employers' liability.
(g) In addition to the 20 hours of prelicensing education required
to qualify for a license as a property broker-agent, casualty
broker-agent, personal lines broker-agent, a life-only agent, or an
accident and health agent, or the 20 hours of prelicensing education
required to qualify for a license as a limited lines automobile
insurance agent, the department shall require 12 hours of study on
ethics and this code. Where an applicant seeks a license for more
than one of the following license types: a fire and casualty
broker-agent license, a personal lines broker-agent license, a
life-only license, or an accident and health license, the applicant
shall only be required to complete one 12-hour course on ethics and
this code. The curriculum for satisfying this requirement shall be
approved by the curriculum board and submitted to the commissioner
for final approval.
(h) An applicant for a life-only agent license, an accident and
health license, a personal lines broker-agent license, or a limited
lines automobile insurance agent license, who is currently licensed
as a nonresident in this state shall be required to complete only the
course of study on ethics and this code, as required by this
section. Additionally, any applicant for that license holding one or
more of the designations specified in subdivisions (a) to (p),
inclusive, of Section 1749.4 shall be exempted from any requirement
for courses in general insurance that would otherwise be a condition
of issuance of the license.
(i) An applicant for a property broker-agent or casualty
broker-agent license who is currently licensed as a nonresident in
this state shall be required to complete only the course of study on
ethics and this code, as required by subdivision (g). Additionally,
any applicant for a license holding one or more of the designations
specified in subdivisions (a) to (p), inclusive, of Section 1749.4,
shall be exempted from any requirement for courses in general
insurance that would otherwise be a condition of issuance of a
license.
(j) An applicant for a property broker-agent or casualty
broker-agent license or both who is licensed as a personal lines
agent shall complete a minimum of 20 hours of prelicensing study as a
prerequisite for each of these licenses. The curriculum for
satisfying this requirement shall be approved by the curriculum board
and submitted to the commissioner for final approval. The applicant
shall not be required to repeat any prelicensing requirements
completed as a prerequisite to being licensed as a personal lines
agent.
(k) Review and approval of prelicensing courses not conducted in a
classroom, as referenced in subdivisions (a) to (j), inclusive,
shall include an evaluation of the safeguards in place to ensure that
the student completing the course is the person enrolled in the
course, methods used to monitor the student's attendance are
adequate, methods for the student to interact with the entity
providing the training exist, and methods used to record the times
spent completing the course are adequate.
(l) Prelicensing certificates of completion expire three years
from the completion date of the course, whether or not a license is
issued.
1749.01. Sections 1749 and 1749.3 shall not apply to a life agent
who is limited by the terms of a written agreement with the insurer,
which filed on that life agent's behalf a notice of appointment with
the commissioner, to transact only specific life insurance policies
or annuities having an initial face amount of fifteen thousand
dollars ($15,000) or less that are designated by the purchaser for
the payment of funeral and burial expenses. The commissioner may
require the insurer appointing those life agents to certify as to the
limitations of the agents' representation.
1749.02. "Twenty-four hour coverage" is the joint issuance of a
workers' compensation policy with a disability insurance policy,
health care service plan contract, or other medical insurance
coverage for nonoccupational injuries and illnesses. This product
shall not include a life insurance policy.
1749.1. (a) The commissioner shall appoint a curriculum board
consisting of representatives of insurance agents, brokers, and life
agents trade associations and representatives of insurance companies
and consumer groups to develop the prelicensing and continuing
education curriculum, including a list of preapproved courses of
study, including courses of study for professional designations which
would satisfy the requirements of this article. The curriculum board
shall develop or recommend courses of study covering all lines of
insurance to be sold under each license including, but not limited
to, any special products such as long-term care insurance, Medi-gap
policies, disability insurance products, and course study on ethics
and pertinent sections of this code. The curriculum developed and the
courses of study approved by the board shall be submitted to the
commissioner for final approval.
(b) The curriculum board shall also develop standards for
providers and instructors of prelicensing and continuing education
courses, programs, and seminars, which standards shall be approved by
the board and submitted to the commissioner for final approval. The
curriculum board may approve standards for courses in business
management practices which may consist of up to 25 percent of the
agent or broker requirements for license renewal. No prelicensing or
continuing education course shall include sales training,
motivational training, self-improvement training, or training offered
by insurers or agents regarding new products or programs.
(c) For purposes of applying subdivision (b), courses in "business
management practices" shall consist of the following subject matter:
(1) Accounting and financial management, including trust account
maintenance, reconciliation and auditing, financial statements,
business budgeting, income and expense ratios, banking and investment
practices, and business perpetuation and planning.
(2) Information and database management, including recordkeeping,
privacy law, and other legal requirements covering the use of
information.
(3) Human resource management, including employee compliance
supervision, recruitment, training, and licensing.
(4) Customer service management, consisting of methods to improve
handling of consumer inquiries and complaints.
(5) Communication skills, consisting of methods to improve writing
and verbal skills for communication with clients, employees,
insurance carriers, claims departments, and regulators.
(d) Whenever the commissioner has reasonable cause to believe, and
determines after public hearing, that any approved course, program
of instruction, or seminar is being conducted so as to fail to meet
the commissioner's prelicensing or continuing education curriculum,
or any provider or instructor for any course, program, or seminar has
failed to comply with the commissioner's standards, the commissioner
may make and serve upon the provider or instructor of that course,
program, or seminar an order or orders rescinding approval for that
provider, course, program, or seminar, or imposing fines and
penalties on that provider, or both. The amount of any fines and
penalties shall not exceed the amounts set forth in Section 1748, and
shall be based on the criteria for assessing penalties specified in
that section. No credit towards meeting the requirements of this
article shall be granted any applicant or licensee for completion of
a course, program, or seminar after the effective date of any order
rescinding approval for that course, program, or seminar. The
commissioner shall serve notice of hearing required by this section
upon the provider or instructor of the course, program, or seminar,
stating the time and place therefor, and the grounds upon which his
or her order is made. The hearing shall occur not less than 30 nor
more than 60 days after notice is served.
(e) The commissioner may impose monetary penalties for minor
instances of noncompliance with the standards established pursuant to
this article, such as late course roster submissions and late course
presentation schedules. The monetary penalties shall not exceed the
amounts of the fees established pursuant to Section 1751.1. The
commissioner shall adopt regulations to establish the monetary
penalties to be levied against providers for late filings and other
minor instances of noncompliance with this article and Article 6.5 of
Subchapter 1 of Chapter 5 of Title 10 of the California Code of
Regulations.
1749.2. The purpose of Sections 1749.3 to 1749.6, inclusive, is to
establish requirements and standards for continuing education
programs for persons licensed as fire and casualty broker-agents and
life agents.
Sections 1749.3 to 1749.6, inclusive, shall not apply to either
(a) those persons holding resident licenses for any kind or kinds of
insurance for which an examination is not required by the law of this
state, nor shall it apply to any such limited or restricted license
as the commissioner may exempt or (b) licensed nonresident agents or
brokers who comply with the continuing education requirements of
their state of residence.
1749.3. An individual licensed as a life-only agent or an accident
and health agent and also licensed as a property or casualty
broker-agent, or an individual only licensed as a property or
casualty broker-agent, shall complete those courses, programs of
instruction, or seminars approved by the commissioner for the type of
license held. Completion of specified product training required in
subdivision (d) of Section 1749.33, subdivision (b) of Section
1749.8, and paragraph (4) of subdivision (a) of Section 10234.93 may
result in the completion of more than the minimum of required
continuing education hours. The minimum number of hours required is
as follows:
(a) Any licensee, as specified in this section, shall
satisfactorily complete 24 hours of instruction prior to renewal of
the license. These hours of instruction may be completed at any time
prior to renewal of the license.
(b) An individual licensed as a property broker-agent or casualty
broker-agent and as a life-only agent or an accident and health agent
shall satisfy the requirements of this section by demonstrating
completion of the courses, programs of instruction, or seminars
approved by the commissioner for any of the license types listed in
this section.
(c) A licensee shall not be required to comply with the
requirements of this article if the licensee submits proof
satisfactory to the commissioner that he or she has been a licensee
in good standing for 30 continuous years in this state and is 70
years of age or older. This exemption shall not apply to those
individuals licensed for the first time on or after January 1, 2010.
1749.31. (a) An individual licensed as a personal lines
broker-agent shall complete required continuing education courses,
programs of instruction, or seminars approved by the commissioner.
The personal lines broker-agent shall complete 24 hours during each
two-year license term as defined in subdivision (d) of Section
1625.5.
(b) An individual licensed as a personal lines broker-agent and as
a life-only agent or accident and health agent shall satisfy the
requirements of this section by satisfactorily completing 24 hours of
instruction prior to renewal of the license.
1749.32. (a) An individual licensed as a limited lines automobile
insurance agent shall complete required continuing education courses,
programs of instruction, or seminars approved by the commissioner.
The minimum number of hours required is 20 hours per license term
prior to the renewal of the license.
(b) An individual licensed as a limited automobile insurance agent
and as a life-only agent or accident and health agent shall satisfy
the requirements of this section by satisfactorily completing 24
hours of instruction prior to renewal of the license.
1749.33. (a) A life-only agent licensee shall satisfactorily
complete 24 hours of instruction prior to renewal of the license.
These hours of instruction may be completed at any time prior to
renewal of the license.
(b) An accident and health agent licensee shall satisfactorily
complete 24 hours of instruction prior to renewal of the license.
These hours of instruction may be completed at any time prior to
renewal of the license.
(c) An agent licensed as both a life-only agent and as an accident
and health agent shall satisfactorily complete a total of 24 hours
of instruction prior to renewal of the license. These hours of
instruction may be completed at any time prior to renewal of the
license.
(d) Any accident and health agent who wishes to sell 24-hour care
coverage, as defined in Section 1749.02, shall complete a course,
program of instruction, or seminar of an approved continuing
education provider on workers' compensation and general principles of
employer liability, which shall be completed by examination approved
by the commissioner as part of the continuing education course,
program of instruction, or seminar prior to selling this coverage.
The required number of instruction hours shall be equal to but no
greater than that required by the curriculum board for the
prelicensing requirements of a fire and casualty broker-agent on
these subjects. For resident licensees, this requirement shall count
toward the licensee's continuing education requirement, but may still
result in completing more than the minimum number of continuing
education hours set forth in this section. Nothing in this section
shall be deemed to allow an accident and health agent to satisfy the
obligations set forth in this section by other than a proctored
examination administered or approved by the department.
1749.4. The courses or programs of instruction successfully
completed that shall be deemed to meet the standards for continuing
educational requirements, and the number of classroom hours for which
they are equivalent, are as follows:
(a) Any part of the Life Underwriter Training Council Fellow
(LUTCF) program totaling 30 hours for the life-only license and the
accident and health license.
(b) Any part of the Chartered Life Underwriter (CLU) curriculum
totaling 30 hours for the life-only license and the accident and
health license.
(c) Any part of the Accredited Advisor in Insurance (AAI) program
totaling 25 hours for the fire casualty broker-agent license.
(d) Any part of the Chartered Property Casualty Underwriter (CPCU)
program totaling 30 hours for the fire casualty broker-agent
license.
(e) Any part of the Certified Insurance Counselor (CIC) program
totaling 25 hours for the life-only or accident health agent license
and the fire casualty broker-agent license.
(f) Any part of the Certified Employee Benefit Specialists (CEBS)
program totaling 25 hours for the life-only license and the accident
and health license.
(g) Any part of the Chartered Financial Consultant (ChFC) program
totaling 30 hours for the life-only license.
(h) Any part of the Certified Financial Planner (CFP) program
totaling 30 hours for the life-only license.
(i) Any part of the Fellow, Life Management Institute (FLMI)
program totaling 30 hours for the life-only license and the accident
and health license.
(j) Any part of the Health Insurance Associate (HIA) program
totaling 25 hours for the accident and health license.
(k) Any part of the Registered Employee Benefits Consultant (REBC)
program totaling 30 hours for the accident and health license.
(l) Any part of the Registered Health Underwriter (RHU) program
totaling 30 hours for the accident and health license.
(m) Any part of the Associate in Risk Management (ARM) program
totaling 30 hours for the fire casualty broker-agent license.
(n) Any insurance-related course approved by the curriculum board
and the commissioner taught by an accredited college or university
per credit hour granted totaling 15 hours.
(o) Any course or program of instruction or seminar developed or
sponsored by an authorized insurer, recognized agents' association,
or insurance trade association, or any independent program of
instruction shall, if approved by the curriculum board and the
commissioner, qualify for the equivalency of the number of classroom
hours assigned thereto by the curriculum board and the commissioner.
(p) Any correspondence course approved by the curriculum board and
the commissioner shall qualify for the equivalency of the number of
classroom hours assigned thereto by the commissioner.
1749.5. (a) A person teaching any approved course of instruction or
lecturing at any approved seminar shall qualify for the same number
of classroom hours as would be granted to a person taking and
successfully completing that course, seminar, or program, except that
such person shall qualify for those classroom hours only once each
license term for each course, seminar, or program.
(b) Excess classroom hours accumulated during any one-year period
may be carried forward to the next year.
(c) For good cause shown, the commissioner may grant an extension
of time during which the requirements imposed by this article may be
completed, but that extension of time shall not exceed the period of
one year.
(d) Every person subject to this article shall furnish, in a form
satisfactory to the commissioner, written certification as to the
courses, programs, or seminars of instruction taken and successfully
completed by that person.
(e) Any education provider whose self-study courses have been
approved by the department shall not count its own self-study courses
towards its continuing education requirement for a license issued
under this chapter.
1749.6. Any person failing to meet the requirements imposed by
Section 1749.3 or 1749.31, and who has not been granted an extension
of time within which to comply by the commissioner shall have his or
her license automatically terminated until the time that the person
demonstrates to the satisfaction of the commissioner that he or she
has complied with all of the requirements of this article and all
other laws applicable thereto. Where a person cannot perform the
requirements of this article due to a disability or inactivity due to
special circumstances, the commissioner shall provide a procedure
for the person to place his or her license on inactive status until
the time that the person demonstrates to the satisfaction of the
commissioner that he or she has complied with or made up all of the
requirements of this article for the period of disability or
inactivity.
1749.7. The commissioner may, pursuant to Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, adopt reasonable rules and regulations necessary for
the convenient administration of this article.
1749.8. (a) Effective January 1, 2005, every life agent who sells
annuities shall satisfactorily complete eight hours of training prior
to soliciting individual consumers in order to sell annuities.
(b) Effective January 1, 2005, every life agent who sells
annuities shall satisfactorily complete four hours of training every
two years prior to license renewal. For resident licensees, this
requirement shall count toward the licensee's continuing education
requirement, but may still result in completing more than the minimum
number of continuing education hours set forth in this section.
(c) The training required by this section shall be approved by the
commissioner and shall consist of topics related to annuities, and
California law, regulations, and requirements related to annuities,
prohibited sales practices, the recognition of indicators that a
prospective insured may lack the short-term memory or judgment to
knowingly purchase an insurance product, and fraudulent and unfair
trade practices. Subject matter determined by the commissioner to be
primarily intended to promote the sale or marketing of annuities
shall not qualify for credit towards the training requirement. Any
course or seminar that is disapproved under the provisions of this
section shall be presumed invalid for credit towards the training
requirement of this section unless it is approved in writing by the
commissioner.
(d) The training requirements set forth in this section shall not
apply to nonresident agents representing an insurer that is a direct
response provider.
For the purposes of this section, "direct response provider" means
an insurer that meets each of the following criteria:
(1) The insurer does not initiate telephone contact with insureds
or prospective insureds.
(2) Agents of the insurer speak with insureds and prospective
insureds only by telephone, and at the request of the insureds or
prospective insureds.
(3) Agents of the insurer are assigned to speak with insureds or
prospective insureds on a random basis, when contacted.
(4) Agents of the insurer are salaried and do not receive
commissions for sales or referrals.
1749.85. (a) The curriculum committee shall, in 2006, make
recommendations to the commissioner to instruct fire and casualty
broker-agents and personal lines broker-agents and applicants for
fire and casualty broker-agent and personal lines broker-agent
licenses in proper methods of estimating the replacement value of
structures, and of explaining various levels of coverage under a
homeowners' insurance policy. Each provider of courses based upon
this curriculum shall submit its course content to the commissioner
for approval.
(b) A person who is not an insurer underwriter or actuary or other
person identified by the insurer, or a licensed fire and casualty
broker-agent, personal lines broker-agent, contractor, or architect
shall not estimate the replacement value of a structure, or explain
various levels of coverage under a homeowners' insurance policy.
(c) This section shall not be construed to preclude licensed
appraisers, contractors and architects from estimating replacement
value of a structure.
(d) However, if the Department of Insurance, by adopting a
regulation, establishes standards for the calculation of estimates of
replacement value of a structure by appraisers, then on and after
the effective date of the regulation a real estate appraiser's
estimate of replacement value shall be calculated in accordance with
the regulation.
1749.9. Nothing in this article shall require any person exempted
from licensure by Section 1634 or 1635 to hold a license as required
by Section 1631.
1749. The department shall require all new applicants for license
as a property broker-agent, casualty broker-agent, limited lines
automobile insurance agent, personal lines broker-agent, life-only
agent, or accident and health agent to meet prelicensing education
standards as follows:
(a) Require a minimum of 20 hours of prelicensing study as a
prerequisite to qualification for a property broker-agent license.
The curriculum for satisfying this requirement shall be approved by
the curriculum board and submitted to the commissioner for final
approval. Any additions to the minimum requirements provided by this
section shall be approved by the curriculum board pursuant to Section
1749.1 and certified by the department.
(b) Require a minimum of 20 hours of prelicensing study as a
prerequisite to qualification for a casualty broker-agent license.
The curriculum for satisfying this requirement shall be approved by
the curriculum board and submitted to the commissioner for final
approval. Any additions to the minimum requirements provided by this
section shall be approved by the curriculum board pursuant to Section
1749.1 and certified by the department.
(c) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for a personal lines broker-agent
license. The curriculum for satisfying this requirement shall be
approved by the curriculum board and submitted to the commissioner
for final approval. Any additions to the minimum requirements
provided by this section shall be approved by the curriculum board
pursuant to Section 1749.1 and certified by the department.
(d) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for a life-only agent license. The
curriculum for satisfying this requirement shall be approved by the
curriculum board and submitted to the commissioner for final
approval. Any additions to the minimum requirements provided by this
section shall be approved by the curriculum board pursuant to Section
1749.1 and certified by the department.
(e) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for a limited lines automobile
insurance agent license. The curriculum for satisfying this
requirement shall be approved by the curriculum board and submitted
to the commissioner for final approval. Any additions to the minimum
requirements under this section shall be approved by the curriculum
board pursuant to Section 1749.1 and certified by the department.
(f) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for an accident and health insurance
agent license. The curriculum for satisfying this requirement shall
be approved by the curriculum board and submitted to the commissioner
for final approval. Any additions to the minimum requirements under
this section shall be approved by the curriculum board pursuant to
Section 1749.1 and certified by the department. This curriculum shall
also include instruction in workers' compensation and general
principles of employers' liability.
(g) In addition to the 20 hours of prelicensing education required
to qualify for a license as a property broker-agent, casualty
broker-agent, personal lines broker-agent, a life-only agent, or an
accident and health agent, or the 20 hours of prelicensing education
required to qualify for a license as a limited lines automobile
insurance agent, the department shall require 12 hours of study on
ethics and this code. Where an applicant seeks a license for more
than one of the following license types: a fire and casualty
broker-agent license, a personal lines broker-agent license, a
life-only license, or an accident and health license, the applicant
shall only be required to complete one 12-hour course on ethics and
this code. The curriculum for satisfying this requirement shall be
approved by the curriculum board and submitted to the commissioner
for final approval.
(h) An applicant for a life-only agent license, an accident and
health license, a personal lines broker-agent license, or a limited
lines automobile insurance agent license, who is currently licensed
as a nonresident in this state shall be required to complete only the
course of study on ethics and this code, as required by this
section. Additionally, any applicant for that license holding one or
more of the designations specified in subdivisions (a) to (p),
inclusive, of Section 1749.4 shall be exempted from any requirement
for courses in general insurance that would otherwise be a condition
of issuance of the license.
(i) An applicant for a property broker-agent or casualty
broker-agent license who is currently licensed as a nonresident in
this state shall be required to complete only the course of study on
ethics and this code, as required by subdivision (g). Additionally,
any applicant for a license holding one or more of the designations
specified in subdivisions (a) to (p), inclusive, of Section 1749.4,
shall be exempted from any requirement for courses in general
insurance that would otherwise be a condition of issuance of a
license.
(j) An applicant for a property broker-agent or casualty
broker-agent license or both who is licensed as a personal lines
agent shall complete a minimum of 20 hours of prelicensing study as a
prerequisite for each of these licenses. The curriculum for
satisfying this requirement shall be approved by the curriculum board
and submitted to the commissioner for final approval. The applicant
shall not be required to repeat any prelicensing requirements
completed as a prerequisite to being licensed as a personal lines
agent.
(k) Review and approval of prelicensing courses not conducted in a
classroom, as referenced in subdivisions (a) to (j), inclusive,
shall include an evaluation of the safeguards in place to ensure that
the student completing the course is the person enrolled in the
course, methods used to monitor the student's attendance are
adequate, methods for the student to interact with the entity
providing the training exist, and methods used to record the times
spent completing the course are adequate.
(l) Prelicensing certificates of completion expire three years
from the completion date of the course, whether or not a license is
issued.
1749.01. Sections 1749 and 1749.3 shall not apply to a life agent
who is limited by the terms of a written agreement with the insurer,
which filed on that life agent's behalf a notice of appointment with
the commissioner, to transact only specific life insurance policies
or annuities having an initial face amount of fifteen thousand
dollars ($15,000) or less that are designated by the purchaser for
the payment of funeral and burial expenses. The commissioner may
require the insurer appointing those life agents to certify as to the
limitations of the agents' representation.
1749.02. "Twenty-four hour coverage" is the joint issuance of a
workers' compensation policy with a disability insurance policy,
health care service plan contract, or other medical insurance
coverage for nonoccupational injuries and illnesses. This product
shall not include a life insurance policy.
1749.1. (a) The commissioner shall appoint a curriculum board
consisting of representatives of insurance agents, brokers, and life
agents trade associations and representatives of insurance companies
and consumer groups to develop the prelicensing and continuing
education curriculum, including a list of preapproved courses of
study, including courses of study for professional designations which
would satisfy the requirements of this article. The curriculum board
shall develop or recommend courses of study covering all lines of
insurance to be sold under each license including, but not limited
to, any special products such as long-term care insurance, Medi-gap
policies, disability insurance products, and course study on ethics
and pertinent sections of this code. The curriculum developed and the
courses of study approved by the board shall be submitted to the
commissioner for final approval.
(b) The curriculum board shall also develop standards for
providers and instructors of prelicensing and continuing education
courses, programs, and seminars, which standards shall be approved by
the board and submitted to the commissioner for final approval. The
curriculum board may approve standards for courses in business
management practices which may consist of up to 25 percent of the
agent or broker requirements for license renewal. No prelicensing or
continuing education course shall include sales training,
motivational training, self-improvement training, or training offered
by insurers or agents regarding new products or programs.
(c) For purposes of applying subdivision (b), courses in "business
management practices" shall consist of the following subject matter:
(1) Accounting and financial management, including trust account
maintenance, reconciliation and auditing, financial statements,
business budgeting, income and expense ratios, banking and investment
practices, and business perpetuation and planning.
(2) Information and database management, including recordkeeping,
privacy law, and other legal requirements covering the use of
information.
(3) Human resource management, including employee compliance
supervision, recruitment, training, and licensing.
(4) Customer service management, consisting of methods to improve
handling of consumer inquiries and complaints.
(5) Communication skills, consisting of methods to improve writing
and verbal skills for communication with clients, employees,
insurance carriers, claims departments, and regulators.
(d) Whenever the commissioner has reasonable cause to believe, and
determines after public hearing, that any approved course, program
of instruction, or seminar is being conducted so as to fail to meet
the commissioner's prelicensing or continuing education curriculum,
or any provider or instructor for any course, program, or seminar has
failed to comply with the commissioner's standards, the commissioner
may make and serve upon the provider or instructor of that course,
program, or seminar an order or orders rescinding approval for that
provider, course, program, or seminar, or imposing fines and
penalties on that provider, or both. The amount of any fines and
penalties shall not exceed the amounts set forth in Section 1748, and
shall be based on the criteria for assessing penalties specified in
that section. No credit towards meeting the requirements of this
article shall be granted any applicant or licensee for completion of
a course, program, or seminar after the effective date of any order
rescinding approval for that course, program, or seminar. The
commissioner shall serve notice of hearing required by this section
upon the provider or instructor of the course, program, or seminar,
stating the time and place therefor, and the grounds upon which his
or her order is made. The hearing shall occur not less than 30 nor
more than 60 days after notice is served.
(e) The commissioner may impose monetary penalties for minor
instances of noncompliance with the standards established pursuant to
this article, such as late course roster submissions and late course
presentation schedules. The monetary penalties shall not exceed the
amounts of the fees established pursuant to Section 1751.1. The
commissioner shall adopt regulations to establish the monetary
penalties to be levied against providers for late filings and other
minor instances of noncompliance with this article and Article 6.5 of
Subchapter 1 of Chapter 5 of Title 10 of the California Code of
Regulations.
1749.2. The purpose of Sections 1749.3 to 1749.6, inclusive, is to
establish requirements and standards for continuing education
programs for persons licensed as fire and casualty broker-agents and
life agents.
Sections 1749.3 to 1749.6, inclusive, shall not apply to either
(a) those persons holding resident licenses for any kind or kinds of
insurance for which an examination is not required by the law of this
state, nor shall it apply to any such limited or restricted license
as the commissioner may exempt or (b) licensed nonresident agents or
brokers who comply with the continuing education requirements of
their state of residence.
1749.3. An individual licensed as a life-only agent or an accident
and health agent and also licensed as a property or casualty
broker-agent, or an individual only licensed as a property or
casualty broker-agent, shall complete those courses, programs of
instruction, or seminars approved by the commissioner for the type of
license held. Completion of specified product training required in
subdivision (d) of Section 1749.33, subdivision (b) of Section
1749.8, and paragraph (4) of subdivision (a) of Section 10234.93 may
result in the completion of more than the minimum of required
continuing education hours. The minimum number of hours required is
as follows:
(a) Any licensee, as specified in this section, shall
satisfactorily complete 24 hours of instruction prior to renewal of
the license. These hours of instruction may be completed at any time
prior to renewal of the license.
(b) An individual licensed as a property broker-agent or casualty
broker-agent and as a life-only agent or an accident and health agent
shall satisfy the requirements of this section by demonstrating
completion of the courses, programs of instruction, or seminars
approved by the commissioner for any of the license types listed in
this section.
(c) A licensee shall not be required to comply with the
requirements of this article if the licensee submits proof
satisfactory to the commissioner that he or she has been a licensee
in good standing for 30 continuous years in this state and is 70
years of age or older. This exemption shall not apply to those
individuals licensed for the first time on or after January 1, 2010.
1749.31. (a) An individual licensed as a personal lines
broker-agent shall complete required continuing education courses,
programs of instruction, or seminars approved by the commissioner.
The personal lines broker-agent shall complete 24 hours during each
two-year license term as defined in subdivision (d) of Section
1625.5.
(b) An individual licensed as a personal lines broker-agent and as
a life-only agent or accident and health agent shall satisfy the
requirements of this section by satisfactorily completing 24 hours of
instruction prior to renewal of the license.
1749.32. (a) An individual licensed as a limited lines automobile
insurance agent shall complete required continuing education courses,
programs of instruction, or seminars approved by the commissioner.
The minimum number of hours required is 20 hours per license term
prior to the renewal of the license.
(b) An individual licensed as a limited automobile insurance agent
and as a life-only agent or accident and health agent shall satisfy
the requirements of this section by satisfactorily completing 24
hours of instruction prior to renewal of the license.
1749.33. (a) A life-only agent licensee shall satisfactorily
complete 24 hours of instruction prior to renewal of the license.
These hours of instruction may be completed at any time prior to
renewal of the license.
(b) An accident and health agent licensee shall satisfactorily
complete 24 hours of instruction prior to renewal of the license.
These hours of instruction may be completed at any time prior to
renewal of the license.
(c) An agent licensed as both a life-only agent and as an accident
and health agent shall satisfactorily complete a total of 24 hours
of instruction prior to renewal of the license. These hours of
instruction may be completed at any time prior to renewal of the
license.
(d) Any accident and health agent who wishes to sell 24-hour care
coverage, as defined in Section 1749.02, shall complete a course,
program of instruction, or seminar of an approved continuing
education provider on workers' compensation and general principles of
employer liability, which shall be completed by examination approved
by the commissioner as part of the continuing education course,
program of instruction, or seminar prior to selling this coverage.
The required number of instruction hours shall be equal to but no
greater than that required by the curriculum board for the
prelicensing requirements of a fire and casualty broker-agent on
these subjects. For resident licensees, this requirement shall count
toward the licensee's continuing education requirement, but may still
result in completing more than the minimum number of continuing
education hours set forth in this section. Nothing in this section
shall be deemed to allow an accident and health agent to satisfy the
obligations set forth in this section by other than a proctored
examination administered or approved by the department.
1749.4. The courses or programs of instruction successfully
completed that shall be deemed to meet the standards for continuing
educational requirements, and the number of classroom hours for which
they are equivalent, are as follows:
(a) Any part of the Life Underwriter Training Council Fellow
(LUTCF) program totaling 30 hours for the life-only license and the
accident and health license.
(b) Any part of the Chartered Life Underwriter (CLU) curriculum
totaling 30 hours for the life-only license and the accident and
health license.
(c) Any part of the Accredited Advisor in Insurance (AAI) program
totaling 25 hours for the fire casualty broker-agent license.
(d) Any part of the Chartered Property Casualty Underwriter (CPCU)
program totaling 30 hours for the fire casualty broker-agent
license.
(e) Any part of the Certified Insurance Counselor (CIC) program
totaling 25 hours for the life-only or accident health agent license
and the fire casualty broker-agent license.
(f) Any part of the Certified Employee Benefit Specialists (CEBS)
program totaling 25 hours for the life-only license and the accident
and health license.
(g) Any part of the Chartered Financial Consultant (ChFC) program
totaling 30 hours for the life-only license.
(h) Any part of the Certified Financial Planner (CFP) program
totaling 30 hours for the life-only license.
(i) Any part of the Fellow, Life Management Institute (FLMI)
program totaling 30 hours for the life-only license and the accident
and health license.
(j) Any part of the Health Insurance Associate (HIA) program
totaling 25 hours for the accident and health license.
(k) Any part of the Registered Employee Benefits Consultant (REBC)
program totaling 30 hours for the accident and health license.
(l) Any part of the Registered Health Underwriter (RHU) program
totaling 30 hours for the accident and health license.
(m) Any part of the Associate in Risk Management (ARM) program
totaling 30 hours for the fire casualty broker-agent license.
(n) Any insurance-related course approved by the curriculum board
and the commissioner taught by an accredited college or university
per credit hour granted totaling 15 hours.
(o) Any course or program of instruction or seminar developed or
sponsored by an authorized insurer, recognized agents' association,
or insurance trade association, or any independent program of
instruction shall, if approved by the curriculum board and the
commissioner, qualify for the equivalency of the number of classroom
hours assigned thereto by the curriculum board and the commissioner.
(p) Any correspondence course approved by the curriculum board and
the commissioner shall qualify for the equivalency of the number of
classroom hours assigned thereto by the commissioner.
1749.5. (a) A person teaching any approved course of instruction or
lecturing at any approved seminar shall qualify for the same number
of classroom hours as would be granted to a person taking and
successfully completing that course, seminar, or program, except that
such person shall qualify for those classroom hours only once each
license term for each course, seminar, or program.
(b) Excess classroom hours accumulated during any one-year period
may be carried forward to the next year.
(c) For good cause shown, the commissioner may grant an extension
of time during which the requirements imposed by this article may be
completed, but that extension of time shall not exceed the period of
one year.
(d) Every person subject to this article shall furnish, in a form
satisfactory to the commissioner, written certification as to the
courses, programs, or seminars of instruction taken and successfully
completed by that person.
(e) Any education provider whose self-study courses have been
approved by the department shall not count its own self-study courses
towards its continuing education requirement for a license issued
under this chapter.
1749.6. Any person failing to meet the requirements imposed by
Section 1749.3 or 1749.31, and who has not been granted an extension
of time within which to comply by the commissioner shall have his or
her license automatically terminated until the time that the person
demonstrates to the satisfaction of the commissioner that he or she
has complied with all of the requirements of this article and all
other laws applicable thereto. Where a person cannot perform the
requirements of this article due to a disability or inactivity due to
special circumstances, the commissioner shall provide a procedure
for the person to place his or her license on inactive status until
the time that the person demonstrates to the satisfaction of the
commissioner that he or she has complied with or made up all of the
requirements of this article for the period of disability or
inactivity.
1749.7. The commissioner may, pursuant to Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, adopt reasonable rules and regulations necessary for
the convenient administration of this article.
1749.8. (a) Effective January 1, 2005, every life agent who sells
annuities shall satisfactorily complete eight hours of training prior
to soliciting individual consumers in order to sell annuities.
(b) Effective January 1, 2005, every life agent who sells
annuities shall satisfactorily complete four hours of training every
two years prior to license renewal. For resident licensees, this
requirement shall count toward the licensee's continuing education
requirement, but may still result in completing more than the minimum
number of continuing education hours set forth in this section.
(c) The training required by this section shall be approved by the
commissioner and shall consist of topics related to annuities, and
California law, regulations, and requirements related to annuities,
prohibited sales practices, the recognition of indicators that a
prospective insured may lack the short-term memory or judgment to
knowingly purchase an insurance product, and fraudulent and unfair
trade practices. Subject matter determined by the commissioner to be
primarily intended to promote the sale or marketing of annuities
shall not qualify for credit towards the training requirement. Any
course or seminar that is disapproved under the provisions of this
section shall be presumed invalid for credit towards the training
requirement of this section unless it is approved in writing by the
commissioner.
(d) The training requirements set forth in this section shall not
apply to nonresident agents representing an insurer that is a direct
response provider.
For the purposes of this section, "direct response provider" means
an insurer that meets each of the following criteria:
(1) The insurer does not initiate telephone contact with insureds
or prospective insureds.
(2) Agents of the insurer speak with insureds and prospective
insureds only by telephone, and at the request of the insureds or
prospective insureds.
(3) Agents of the insurer are assigned to speak with insureds or
prospective insureds on a random basis, when contacted.
(4) Agents of the insurer are salaried and do not receive
commissions for sales or referrals.
1749.85. (a) The curriculum committee shall, in 2006, make
recommendations to the commissioner to instruct fire and casualty
broker-agents and personal lines broker-agents and applicants for
fire and casualty broker-agent and personal lines broker-agent
licenses in proper methods of estimating the replacement value of
structures, and of explaining various levels of coverage under a
homeowners' insurance policy. Each provider of courses based upon
this curriculum shall submit its course content to the commissioner
for approval.
(b) A person who is not an insurer underwriter or actuary or other
person identified by the insurer, or a licensed fire and casualty
broker-agent, personal lines broker-agent, contractor, or architect
shall not estimate the replacement value of a structure, or explain
various levels of coverage under a homeowners' insurance policy.
(c) This section shall not be construed to preclude licensed
appraisers, contractors and architects from estimating replacement
value of a structure.
(d) However, if the Department of Insurance, by adopting a
regulation, establishes standards for the calculation of estimates of
replacement value of a structure by appraisers, then on and after
the effective date of the regulation a real estate appraiser's
estimate of replacement value shall be calculated in accordance with
the regulation.
1749.9. Nothing in this article shall require any person exempted
from licensure by Section 1634 or 1635 to hold a license as required
by Section 1631.
