VIRGINIA ACTS OF ASSEMBLY -- CHAPTER
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
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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