Licensing and Continuing Education changes to take effect July 2010
In an attempt to streamline electronic producer licensing, and make our system more compatible with other states, the Minnesota State Legislature enacted some major changes to our state's producer licensing system. Similar changes are being enacted around the country in an attempt to prove to Congress and others that state regulation of insurance can work and should not be replaced with a single federal regulator.
These changes will not take effect until July, 2010 and most likely won't affect most of you until you renew your current license in October. However, we are trying to get the word out now about these changes to avoid any surprises next year. Here is a summary of the major changes to our insurance producer licensing laws.
Pre-licensing education is no longer limited to classroom study and may be obtained over the Internet or through verifiable self study.
All applicants must pass an examination.
The pre-license education requirement will no longer be 30 hours of basic education but 20 hours per major line of authority sought.
Holders of CIC, CFP, CLU, LUTCF, CPCU or other accredited professional designations or an applicant that has received a two-year vocational school degree in insurance or a four year college degree in business with an insurance emphasis need not complete a pre-license program.
Continuing Education Requirements
The continuing education requirement will be changed from 30 credit hours during the license period (2 years) to 24 credit hours.
There is no longer any limit on the number of hours that can be obtained through the Internet or other distant learning programs.
The limit on company sponsored coursework will continue. No more than one-half of the required credit hours per licensing period (12 hours) may be credited for courses either sponsored by, offered by, or affiliated with an insurance company.
All producers will be required to obtain three hours of continuing education in ethics. Course will be approved for ethics by the commissioner.
Criminal History - Background Checks
All resident insurance producer licensees must
1. consent to a criminal history record check
2. pay the fee required for this record check
3. submit a fingerprint card in a form acceptable to the commissioner
The Commissioner of Commerce may contract with a third party to collect and transmit fingerprints or the Minnesota Bureau of Criminal Apprehension or other government agency for record checks.
License Renwal Periods
License renewals after August 2010 will occur during the month of your birth. Initial license renewals issued under the new law during October, 2010 will be issued for at least 12 months but no more than 24 months. (For example for an agent born in January, his or her initial license under the new system will be renewed for 16 months [October 2010 to January 2012]. In January 2012, the renewal period will be two years.)
Licenses will expire on the last day of the producer's birth month.
There will no longer be a continuing education waiver or limited license for retired insurance producers. The commissioner will still be able to waive CE requirements for good cause such as illness or military duty.