Insurance, Administration

Rule R590-142

Continuing Education Rule

Notice of Proposed Rule

(Amendment)

DAR File No.: 35543
Filed: 12/15/2011 12:13:40 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The changes to this rule are being made to comply with requirements in H.B. 128, Health Reform Amendments, which was passed in the 2011 General Session. The bill requires that a rule be adopted to explain the continuing education (CE) requirements in the defined contribution arrangement market and the Utah Health Exchange.

Summary of the rule or change:

The changes to this rule require a producer in the defined contribution arrangement market to take a minimum of two hours of continuing education every two years on the use of the Utah Health Exchange and premium assistance programs.

State statutory or constitutional authorization for this rule:

• Section 31A-2-201
• Section 31A-26-206
• Section 31A-35-401.5
• Section 31A-23a-202
• Section 31A-30-209

Anticipated cost or savings to:

the state budget:

The department has seen a very small increase in workflow from CE providers seeking approval for new courses. So far four non-profit organizations have applied to provide the training required in H.B. 128. These however were non-profit providers and were not required to pay an annual licensing fee of $270.

local governments:

This rule and its changes will have no fiscal impact on local government since it relates only to the relationship between the department and its licensees.

small businesses:

The change to this rule has opened the door for CE providers to create new courses for those insurance producers required to take them. So far two of the four CE providers offering these courses are not charging for this training and two are. Providers have the freedom to determine what they will charge for their courses.

persons other than small businesses, businesses, or local governmental entities:

Since the total number of CE hours has not changed, the changes to this rule will have no fiscal impact on producers that are a part of the Health Exchange. Consumers will only be affected in that the producer providing information on the Health Exchange and premium assistance programs will be better educated and better able to direct them to the coverage right for the consumer.

Compliance costs for affected persons:

Producers will not be financially impacted since the total number of CE hours has not changed. Consumers will only be affected in that the producer providing information on the Health Exchange and premium assistance programs will be better educated and better able to direct them to the coverage right for the consumer. CE providers so far have had no cost to become CE providers for this training and only two of the four providers are charging students who take their courses. It is not expected that there will be very many more CE providers apply to give this training. Those already providing training are also the ones that assisted with the creation of the Health Exchange and premium assistance programs and so are most knowledgeable about them.

Comments by the department head on the fiscal impact the rule may have on businesses:

These changes may have a small impact on CE providers who have or will create CE courses and charge an attendance fee.

Neal T. Gooch, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/31/2012

This rule may become effective on:

02/07/2012

Authorized by:

Jilene Whitby, Information Specialist

R590. Insurance, Administration.

R590-142. Continuing Education Rule.

R590-142-1. Authority.

This rule is promulgated pursuant to:

(1) Subsection 31A-2-201(3) that authorizes the commissioner to adopt rules to implement the provisions of the Utah Insurance Code;

(2) Subsection 31A-23a-202(1) that authorizes the commissioner to adopt a rule to prescribe the continuation requirements for a producer and a consultant;

(3) Subsection 31A-23a-202(5) that authorizes the commissioner to adopt a rule to prescribe the processes and procedures for continuing education provider registration and course approval;

(4) Subsection 31A-26-206(1) that authorizes the commissioner to adopt a rule to prescribe the continuing education requirements for an adjuster;[and]

(5) Subsection 31A-35-401.5 that authorizes the commissioner to adopt a rule to implement the continuing education requirement for renewal of a bail bond producer license ; and

(6) Subsection 31A-30-209 that authorizes the commissioner to adopt a rule to implement the continuing education requirements for the defined contribution market.

 

R590-142-2. Purpose and Scope.

(1) The purpose of this rule is to implement the continuing education requirements of Sections 31A-23a-202, 31A-26-206, and 31A-35-401.5.

(2) This rule applies to all continuing education providers and individual producer, consultant, and adjuster licensees under Sections 31A-23a-202, 31A-26-206, 31A-30-209, and 31A-35-401.5.

 

R590-142-3. Definitions.

For the purpose of this rule the Commissioner adopts the definitions as set forth in Sections 31A-1-301, 31A-23a-102, 31A-26-102, 31A-35-102, and the following:

(1) "Classroom course" means:

(a) a course of study that:

(i) is taught on-site by a live instructor at the same location;

(ii) requires monitoring of a student; and

(iii) may require examination of course content to be performed by a student; or

(b) an interactive course of study that:

(i) is taught by a live instructor from a separate location;

(A) is delivered to a student via:

(I) computer;

(II) teleconference;

(III) webinar; or

(IV) some other method acceptable to the commissioner; or

(ii) is not taught by a live instructor;

(A) is delivered to a student via computer; or

(B) some other method acceptable to the commissioner;

(iii) requires two-way interaction between a student and the instrument of instruction;

(iv) requires monitoring of a student; and

(v) requires examination of course content to be performed by a student.

(2) "Credit hour" means one 50-minute period of insurance related instruction consisting of:

(a) a classroom course;

(b) a home study course; or

(c) some other method acceptable to the commissioner;

(3) "Designated internet site" means an internet site that is designated by the commissioner for a provider to submit a student's course completion information.

(4) "Home-study course" means a non-interactive course of study that:

(a) is not taught by a live instructor;

(b) is completed by a student via:

(i) computer;

(ii) video recording, if the video is professionally produced;

(iii) text book; or

(iv) some other method acceptable to the commissioner;

(c) does not require two-way interaction between a student and the instrument of instruction;

(d) does not require monitoring of a student; and

(e) requires examination of course content to be performed by the student.

(5) "Insurance related instruction" means that amount of time that is assigned by the commissioner to a course of study to satisfy the requirements of continuing education credit hours under this rule, in which assignment of value shall be made on the basis of:

(a) content;

(b) presentation; and

(c) format.

(6) "Monitoring of a student" means a person or system in place who verifies participation in and completion of a course.

(7) "Nonprofit provider" means an organization that fits the definition of nonprofit corporation as defined in Subsection 16-6a-102(34).

(8) "Provider" means a person who offers a course of study or program for credit to an applicant to satisfy the continuing education requirements of this rule.

 

R590-142-4. Continuing Education Requirements.

A producer, consultant, and adjuster licensee shall comply with, and a continuing education provider shall be familiar with, the following continuing education requirements:

(1) the number of credit hours of continuing education insurance related instruction required to be completed biennially as a prerequisite to license renewal shall be in accordance with Sections 31A-23a-202, 31A-26-206, and 31A-35-401.5;

(2) a licensee may obtain continuing education credit hours at any time during the two-year licensing period;

(3) not more than half of the total credit hours required shall be satisfied by courses provided by insurers;

(4) upon renewal of a license, no continuing education credit hours in excess of the number required to renew the license may be carried over or applied to any subsequent licensing period;

(5) a licensee shall attend a course in its entirety in order to receive credit for the course;

(6) a licensee may repeat a course for credit but will not be permitted to take a course for credit more than once in a license continuation period;

(7) a nonresident licensee who satisfies the licensee's home state's continuing education requirement is considered to have satisfied Utah's continuing education requirement; and

(8) a licensee with a professional designation may use the continuing education credit hours required to maintain the designation to satisfy the requirement of the commissioner if:

(a) the hours are sufficient to meet the current continuing education requirement described in Sections 31A-23a-202 and 31A-26-206; and

(b) the professional designation consists of one or more of the following:

(i) Accredited Customer Service Representative (ACSR);

(ii) Accredited Financial Examiner (AFE) or Certified Financial Examiner (CFE);

(iii) Accredited Insurance Examiner (AIE) or Certified Insurance Examiner (CIE);

(iv) Certified Financial Planner (CFP);

(v) Certified Insurance Counselor (CIC);

(vi) Certified Risk Manager (CRM);

(vii) Registered Employee Benefits Consultant (REBC);

(viii) Chartered Property Casualty Underwriter (CPCU) with completion of the Continuing Professional Development (CPD) program; or

(ix) Certified Life Underwriter (CLU), Chartered Financial Consultant (ChFC) or Registered Health Underwriter (RHU) with completion of the Professional Achievement in Continuing Education (PACE) recertification program.

(9) A producer who solicits or sells a defined contribution plan in accordance with Section 31A-30-209 shall complete a minimum of two hours of defined contribution continuing education that includes training on use of the Utah Health Exchange and premium assistance programs:

(a) prior to soliciting or selling a defined contribution plan; and

(b) during each subsequent two-year licensing period that the producer solicits or sells a defined contribution plan.

 

R590-142-5. Experience Credit.

(1) Continuing education credit hours may be granted to a licensee for experience credit at the discretion of the commissioner, including credit for experience such as the authoring of an insurance book, course or article.

(2) Membership by a producer or consultant in a state or national professional producer or consultant association is considered to be a substitute for two credit hours for each year during which the producer or consultant is a member of the association, except as provided in (3) below.

(3) No more than two hours of continuing education credit shall be granted per year during the two-year license continuation period, regardless of the number of professional associations of which the producer or consultant is a member.

(4) An approved continuing education course taught by an approved instructor holding a Utah producer, consultant, or adjuster license shall receive twice the number of credit hours allocated by the commissioner for the course, except as provided in Subsection (5) below.

(5) Credit for instruction of a course shall be granted no more than once per license renewal period for each course taught.

(6) Continuing education experience credit shall not be granted for committee service.

 

R590-142-8. Provider Requirements.

(1) A provider or a state or national professional producer or consultant association may:

(a) offer a qualified course for a license type or line of authority on a geographically accessible basis; and

(b) collect a reasonable fee for funding and administration of a continuing education program, subject to the review and approval of the commissioner.

(2) A person must register with the commissioner as a provider prior to acting as a provider in Utah.

(3) To initially register as a provider, a person must:

(a) electronically submit a completed provider registration form;

(b) submit a course outline that includes information regarding the course content and the number of credit hours requested for the course; and

(c) pay an initial registration fee, as identified in Rule R590-102, except as provided in Subsection (4) below.

(4) A nonprofit provider is not required to pay a registration fee.

(5) To renew a provider registration, a provider, other than a non-profit provider, must pay an annual renewal fee, as identified in Rule R590-102, prior to the annual renewal date.

(6) To renew a non-profit provider registration, electronic notification must be submitted to the commissioner prior to the annual renewal date, of the intent to renew the registration.

(7) Prior to a course being taught, a provider shall:

(a) post the course offering to a designated internet site;

(b) provide the commissioner with the name and resume of the instructor or instructors who will be teaching the course; and

(c) include identifying information as to any insurance license previously or currently held by the instructor or instructors who will be teaching the course.

(8) A provider shall report to the commissioner:

(a) an administrative action taken against the provider in any jurisdiction; and

(b) a criminal prosecution taken against the provider in any jurisdiction.

(9) The report required by Subsection (8) shall:

(a) be filed:

(i) at the time of submitting the initial provider registration; and

(ii) within 30 days of the:

(A) final disposition of the administrative action; or

(B) initial appearance before a court; and

(b) include a copy of the complaint or other relevant legal documents related to the action or prosecution described in Subsection (8).

(10) The commissioner may prohibit any person from acting as a provider or instructor in Utah if the commissioner determines that:

(a) the person is not competent and trustworthy; or

(b) the person or course of study fails to meet the qualifying standards.

 

KEY: insurance continuing education

Date of Enactment or Last Substantive Amendment: [August 23, 2011]2012

Notice of Continuation: January 26, 2007

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-23a-202; 31A-26-206; 31A-35-401.5