Bill Text: MI SB0706 | 2011-2012 | 96th Legislature | Engrossed

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Bill Title: Insurance; life; use of senior-specific certification and professional designations by insurance producers; prohibit in certain cases. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2007a.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2011-11-03 - Referred To Committee On Families, Children, And Seniors [SB0706 Detail]

Download: Michigan-2011-SB0706-Engrossed.html

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SB-0706, As Passed Senate, November 3, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 706

 

 

September 28, 2011, Introduced by Senator GREGORY and referred to the Committee on Families, Seniors and Human Services.

 

 

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

(MCL 500.100 to 500.8302) by adding section 2007a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2007a. (1) It is an unfair method of competition and an

 

unfair or deceptive act or practice in the business of insurance

 

for an insurance producer to use a senior-specific certification or

 

professional designation that indicates or implies in such a way as

 

to mislead a purchaser or prospective purchaser that the insurance

 

producer has special certification or training in advising or

 

servicing seniors in connection with the solicitation, sale, or

 

purchase of a life insurance or annuity product or in the provision

 

of advice as to the value of or the advisability of purchasing or

 

selling a life insurance or annuity product, either directly or

 

indirectly through publications or writings, or by issuing or

 

promulgating analyses or reports related to a life insurance or

 

annuity product.

 

     (2) The prohibited use of senior-specific certifications or

 

professional designations under subsection (1) includes, but is not

 

limited to, all of the following:

 

     (a) Use of a certification or professional designation by an

 

insurance producer who has not actually earned or is otherwise

 

ineligible to use the certification or designation.

 

     (b) Use of a nonexistent or self-conferred certification or

 

professional designation.

 

     (c) Use of a certification or professional designation that

 

indicates or implies a level of occupational qualifications

 

obtained through education, training, or experience that the

 

insurance producer using the certification or designation does not

 

have.

 

     (d) Use of a certification or professional designation that

 

was obtained from a certifying or designating organization that

 

meets any of the following:

 

     (i) Is primarily engaged in the business of instruction in

 

sales or marketing.

 

     (ii) Does not have reasonable standards or procedures for

 

assuring the competency of its certificants or designees.

 

     (iii) Does not have reasonable standards or procedures for

 

monitoring and disciplining its certificants or designees for

 

improper or unethical conduct.

 

     (iv) Does not have reasonable continuing education requirements

 

for its certificants or designees in order to maintain the

 

certificate or designation.

 

     (3) There is a rebuttable presumption that a certifying or

 

designating organization is not disqualified solely under

 

subsection (2)(d) if the certification or designation issued from

 

the organization does not primarily apply to sales or marketing and

 

if the organization or the certification or designation in question

 

has been accredited by any of the following:

 

     (a) The American national standards institute.

 

     (b) The national commission for certifying agencies.

 

     (c) Any organization that is on the United States department

 

of education's list entitled "Accrediting Agencies Recognized for

 

Title IV Purposes".

 

     (4) In determining whether a combination of words or an

 

acronym standing for a combination of words constitutes a

 

certification or professional designation indicating or implying

 

that a person has special certification or training in advising or

 

servicing seniors, all of the following shall be considered:

 

     (a) Use of 1 or more words such as "senior", "retirement",

 

"elder", or a like word combined with 1 or more words such as

 

"certified", "registered", "chartered", "advisor", "specialist",

 

"consultant", "planner", or a like word, in the name of the

 

certification or professional designation.

 

     (b) The manner in which the words listed in subdivision (a)

 

are combined.

 

     (5) For purposes of this section, a job title within an

 

organization that is licensed or registered by a state or federal

 

financial services regulatory agency is not a certification or

 

professional designation, unless it is used in a manner that would

 

confuse or mislead a reasonable consumer, if the job title

 

indicates seniority or standing within the organization or

 

specifies an individual's area of specialization within the

 

organization. For purposes of this subsection, financial services

 

regulatory agency includes, but is not limited to, an agency that

 

regulates insurers, insurance producers, broker-dealers, investment

 

advisers, or investment companies as defined under the investment

 

company act of 1940, 15 USC 80a-1 to 80a-64.