ENGROSSED SENATE
BILL NO. 397	By:	Stanislawski of the Senate

			and

		McDaniel (Randy) of the House

[ insurance - continuing education - providing online course be of certain design - eliminating course proctor - effective date -		emergency ]

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     36 O.S. 2001, Section 1435.29, as last amended by Section 13, Chapter 432, O.S.L. 2009 (36 O.S. Supp. 2010, Section 1435.29), is amended to read as follows:
Section 1435.29  A.  1.  Each insurance producer, with the exception of title producers and aircraft title producers or any other producer exempt by rule, shall, biennially, complete not less than twenty-one (21) clock hours of continuing insurance education which shall cover subjects in the lines for which the insurance producer is licensed.  Such education may include a written or oral examination.
2.  Each customer service representative shall, biennially, complete not less than ten (10) clock hours of continuing insurance education which shall cover subjects in the lines for which the licensee is authorized to conduct insurance-related business on behalf of the appointing agent, broker, or agency.
3.  Licensees, with the exception of title producers and aircraft title producers or any other producer exempt by rule, shall complete, in addition to the foregoing, three (3) clock hours of ethics course work in this same period.
4.  Each title producer and aircraft title producer shall, biennially, complete not less than sixteen (16) clock hours of continuing insurance education, two (2) hours of which shall be ethics course work, which shall cover the line for which the producer is licensed.  Such education may include a written or oral examination.
B.  1.  The Insurance Commissioner shall approve courses and providers of resident provisional producer prelicensing education and continuing education.  The Insurance Department may use one or more of the following to review and provide a nonbinding recommendation to the Insurance Commissioner on approval or disapproval of courses and providers of resident provisional producer prelicensing education and continuing education:
a.	employees of the Insurance Commissioner,
b.	a continuing education advisory committee, or
c.	an independent service whose normal business activities include the review and approval of continuing education courses and providers.  The Commissioner may negotiate agreements with such independent service to review documents and other materials submitted for approval of courses and providers and provide the Commissioner with its nonbinding recommendation.  The Commissioner may require such independent service to collect the fee charged by the independent service for reviewing materials provided for review directly from the course providers.
The Insurance Commissioner has sole authority to approve courses and providers of resident provisional producer prelicensing education and continuing education.  If the Insurance Commissioner uses one of the entities listed above to provide a nonbinding recommendation, the Commissioner shall adopt or decline to adopt the recommendation within thirty (30) days of receipt of the recommendation.  In the event the Insurance Commissioner takes no action within said the thirty-day period, the recommendation made to the Commissioner will be deemed to have been adopted by the Commissioner.
The Insurance Commissioner may certify providers and courses offered for license examination study.  The Insurance Department shall use employees of the Insurance Commissioner to review and certify license examination study program providers and courses.
2.  Each insurance company shall be allowed to provide continuing education to insurance producers and customer service representatives as required by this section; provided that such continuing education meets the general standards for education otherwise established by the Insurance Commissioner.  Courses and programs offered online for continuing education credit or presumptive continuing education credit shall be designed to present materials in such a manner that allows the participant to complete the entire material without a proctor or monitor for either the course or program or the written examination.
3.  An insurance producer who, during the time period prior to renewal, participates in an approved professional designation program shall be deemed to have met the biennial requirement for continuing education.
Each course in the curriculum for the program shall total a minimum of twenty-four (24) hours.  Each approved professional designation program included in this section shall be reviewed for quality and compliance every three (3) years in accordance with standardized criteria promulgated by rule.  Continuation of approved status is contingent upon the findings of the review.  The list of professional designation programs approved under this paragraph shall be made available to producers and providers annually.
4.  The Insurance Department may promulgate rules providing that courses or programs offered by professional associations shall qualify for presumptive continuing education credit approval.  The rules shall include standardized criteria for reviewing the professional associations’ mission, membership, and other relevant information, and shall provide a procedure for the Department to disallow all or part of a presumptively approved course.  Courses and programs offered online for continuing education credit or presumptive continuing education credit shall be designed to present materials in such a manner that allows the participant to complete the entire material without a proctor or monitor for either the course or program or the written examination.  Professional association courses approved in accordance with this paragraph shall be reviewed every three (3) years to determine whether they continue to qualify for continuing education credit.
5.  Subject to approval by the Commissioner, the active membership of the licensed producer or broker in local, regional, state, or national professional insurance organizations or associations may be approved for up to one (1) annual hour of instruction.  The hour shall be credited upon timely filing with the Commissioner, or designee of the Commissioner, and appropriate written evidence acceptable to the Commissioner of such active membership in the organization or association.
6.  The active service of a licensed producer as a member of a continuing education advisory committee, as described in paragraph 1 of this subsection, shall be deemed to qualify for continuing education credit on an hour-for-hour basis.
C.  Annual fees and course submission fees shall be set forth as a rule by the Commissioner.  The fees are payable to the Insurance Commissioner.  Provided, public-funded educational institutions, federal agencies, nonprofit organizations, not-for-profit organizations, and Oklahoma state agencies shall be exempt from this subsection.
D.  Failure of an insurance producer or customer service representative to comply with the requirements of the Oklahoma Producer Licensing Act may, after notice and opportunity for hearing, result in censure, suspension, nonrenewal of license or a civil penalty of up to Five Hundred Dollars ($500.00) or by both such penalty and civil penalty.  Said The civil penalty may be enforced in the same manner in which civil judgments may be enforced.
E.  Limited lines producers and nonresident agents who have successfully completed an equivalent or greater requirement shall be exempt from the provisions of this section.
F.  Members of the Legislature shall be exempt from this section.
G.  The Commissioner shall adopt and promulgate such rules as are necessary for effective administration of this section.
SECTION 2.  This act shall become effective July 1, 2011.
SECTION 3.  It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval.
Passed the Senate the 15th day of March, 2011.

	
Presiding Officer 	of the Senate

Passed the House of Representatives the ____ day of __________, 2011.

	
Presiding Officer of the House
	of Representatives