Producer Continuing Education Requirements - Implementation of 2005 PA 247 ________________________________________

STATE OF MICHIGAN

DEPARTMENT OF LABOR AND ECONOMIC GROWTH

OFFICE OF FINANCIAL AND INSURANCE SERVICES

Bulletin 2006-04-INS

In the matter of

Producer Continuing Education Requirements -

Implementation of 2005 PA 247

________________________________________/

Issued and entered

this 7th day of April 2006

By Linda A. Watters

Commissioner

On December 1, 2005, Governor Granholm signed into law 2005 PA 247, effective

February 1, 2006, amending subsections (4) and (11) of Section 1204c of the Insurance

Code, 1956 PA 218, MCL 500.1204(c)(4)(11), to read as follows:

“(4) Except as provided in subsections (11) to (14), before the review date of

each applicable 2-year period provided for under subsection (2) or (3), an

insurance producer wishing to renew his or her license shall renew his or her

license by attending or instructing not less than 24 hours of continuing education

classes approved by the commissioner or 24 hours of home study if evidenced

by successful completion of course work approved by the commissioner. Of the

24 hours of continuing education required, not less than 3 hours shall be in ethics

in insurance classes or course work.”

“(11) The commissioner shall waive the continuing education requirements of this

section for an insurance producer if the producer is unable to comply with the

continuing education requirements of this section due to military service or if the

commissioner determines that enforcement of the requirements would cause a

severe hardship

all be in ethics

in insurance classes or course work.”

“(11) The commissioner shall waive the continuing education requirements of this

section for an insurance producer if the producer is unable to comply with the

continuing education requirements of this section due to military service or if the

commissioner determines that enforcement of the requirements would cause a

severe hardship. The commissioner shall waive the continuing education

requirements of this section for an insurance producer who is licensed to write

only travel or baggage insurance policies and whose employment is for a

purpose other than the sale of those policies.”

Generally, this legislation brought Michigan into conformity with National Association of

Insurance Commissioners (NAIC) uniform standards for producer continuing education

(CE) requirements, reduced the hours of mandatory CE from 30 to 24 hours every two

years, required that three (3) of those hours be earned in an Ethics course, eliminated

CE hours specifically tied to particular product lines, and granted the Commissioner

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authority to waive the CE requirements for insurance producers unable to comply with

the CE requirements because of military service or other severe hardship.

Despite the OFIS publication on its website – www.michigan.gov/ofis - of the changes in

the law and publication of a list of commissioner-approved ethics courses, the short lead

time for these legal changes has resulted in some confusion among producers

regarding their CE requirements and the submission to OFIS of renewal applications

without proof of completion of the mandated three (3) hours of ethics course work.

The Commissioner is issuing this bulletin to inform producers and the industry of the

most significant changes in the law and to assure an orderly implementation of the

changes in producer continuing education requirements resulting from enactment of

2005 PA 247

the submission to OFIS of renewal applications

without proof of completion of the mandated three (3) hours of ethics course work.

The Commissioner is issuing this bulletin to inform producers and the industry of the

most significant changes in the law and to assure an orderly implementation of the

changes in producer continuing education requirements resulting from enactment of

2005 PA 247. The new requirements are:

• Effective February 1, 2006, each insurance producer renewal applicant is

required to complete 24 continuing education credits every two years, at least

three (3) of which must be earned in Ethics, selected from the approved Ethics

courses available on the OFIS website. Education credits beyond the

mandated 24 earned in other subjects cannot be substituted for the three

required hours of instruction in Ethics.

• Dual-licensed individuals, i.e. those having both a Property and Casualty license

and a Life and Health license are no longer required to have a specific number

of hours of instruction in each product line. The Commissioner recommends

that companies monitor the educational requirements of their producers to

assure they have adequate instruction in the specific lines they are authorized

to sell.

To implement these requirements, the Commissioner is establishing a procedure for

military and hardship waivers and is granting up to a 90-day grace period as follows:

• Producers with a 2/1/06 or 3/1/06 review date who have completed 21 of the 24

total continuing education credits are granted extensions without license

suspension to obtain the required three (3) credits in Ethics under the following

schedule:

o Producers with a CE review date of 2/1/06 must be compliant by 5/1/06.

o Producers with a CE review date of 3/1/06 must be compliant by 6/1/06.

o Producers with a CE review date of 6/1/06 must be compliant by 6/1/06

of the 24

total continuing education credits are granted extensions without license

suspension to obtain the required three (3) credits in Ethics under the following

schedule:

o Producers with a CE review date of 2/1/06 must be compliant by 5/1/06.

o Producers with a CE review date of 3/1/06 must be compliant by 6/1/06.

o Producers with a CE review date of 6/1/06 must be compliant by 6/1/06.

• Producers who are unable to comply with the mandatory continuing education

requirements because of military service or other severe hardship must submit to

the Commissioner at the address below a written request for waiver, together

with such documentation (e.g. military call notice, doctor’s statement of disability)

in support of the request as the Commissioner seeks, at least sixty (60) days

before the date specified for review of the producer’s license.

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All requests for waiver and any questions regarding this bulletin should be directed to:

Office of Financial and Insurance Services

Market Conduct Division

611 West Ottawa Street

P.O. Box 30220

Lansing, Michigan 48909-7720

Local: (517) 241-9550

Toll Free: (877) 999-6442

_________________________________________

Linda A. Watters

Commissioner of Financial and Insurance Services

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