2024 Pennsylvania Consolidated & Unconsolidated Statutes
Act 142 - INSURANCE DEPARTMENT ACT OF 1921 - POWERS AND DUTIES OF DEPARTMENT, LICENSE PREREQUISITES, LICENSING AND LICENSE RENEWALS
Session of 2024
No. 2024-142
SB 1241
AN ACT
Amending the act of May 17, 1921 (P.L.789, No.285), entitled "An act, relating to insurance; establishing an insurance department; and amending, revising, and consolidating the law relating to the licensing, qualification, regulation, examination, suspension, and dissolution of insurance companies, Lloyds associations, reciprocal and inter-insurance exchanges, and certain societies and orders, the examination and regulation of fire insurance rating bureaus, and the licensing and regulation of insurance agents and brokers; the service of legal process upon foreign insurance companies, associations or exchanges; providing penalties, and repealing existing laws," in insurance producers, further providing for definitions, for powers and duties of department, for license prerequisites, for licensing and for license renewals.
The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:
Section 1. The definition of "candidate" in section 601-A of the act of May 17, 1921 (P.L.789, No.285), known as The Insurance Department Act of 1921, is amended to read:
Section 601-A. Definitions.
The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise:
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"Candidate." An individual who [has satisfactorily completed or is exempt from the preexamination educational requirements of] applies to take an insurance producer licensing examination under section 604-A.
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Section 2. Sections 602-A(a)(2), 604-A(a), (b), (c) and (d) introductory paragraph, 606-A(a)(3) and 608-A(b) of the act are amended to read:
Section 602-A. Powers and duties of department.
(a) Responsibilities.--The commissioner shall do all of the following:
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(2) Approve and administer or contract for the overall administration of the [preexamination program, preexamination courses of study,] insurance producer licensing examinations and continuing education programs. [A preexamination education program approved by the department shall include no less than three credit hours on ethics.]
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Section 604-A. License prerequisites.
(a) General rule.--Prior to applying to the department for an insurance producer license, an individual shall [do the following:
(1) satisfactorily complete the preexamination education requirements of subsection (b); and
(2)] pass an insurance producer licensing examination required for the lines of authority for which a candidate desires a license.
[(b) Preexamination education requirements.--Prior to making an application for the insurance producer licensing examination, an individual who desires to be licensed as an insurance producer shall complete a minimum of 24 credit hours of approved preexamination courses. Upon satisfactory completion of an approved preexamination course of study, the individual shall be issued proof of completion by the provider.]
(c) Insurance producer licensing examination.--[Except as provided in subsection (d), upon satisfactory completion of an approved preexamination course of study a candidate may apply to take an insurance producer licensing examination.] A candidate shall remit a completed application for examination indicating the lines of authority for which the candidate desires to be licensed[, a copy of the candidate's approved preexamination study certificate] and the nonrefundable examination fee established by the department prior to taking an insurance producer licensing examination.
(d) Exceptions.--The examination [or preexamination education] requirements of this act shall not be required if the person is:
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Section 606-A. Licensing.
(a) Applicants.--The department shall review each application and may conduct an investigation of each applicant who applies for a license in accordance with this act. The department shall issue a resident or nonresident insurance producer license, as appropriate, to the applicant when the department determines that all of the following criteria have been met:
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[(3) The applicant has satisfied the preexamination education requirements of this act.]
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Section 608-A. License renewals.
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(b) Continuing education.--
(1) A licensee shall successfully complete 24 credit hours of approved continuing education for each two-year license period as a condition for license renewal unless modified by the department by regulation. A licensee may carry forward excess continuing education credit hours up to a maximum of 24 credit hours from one licensing period to the next licensing period.
(2) For each licensee, at least three of the 24 credit hours of approved continuing education required under paragraph (1) must be on the topic of ethics. The following apply:
(i) For an individual licensed prior to the effective date of this subparagraph, the individual shall satisfy the ethics requirement under this paragraph within 12 months of the effective date of this subparagraph or by the end of the individual's license period existing on the effective date of this subparagraph, whichever period of time is longer.
(ii) For an individual licensed on or after the effective date of this subparagraph, the individual shall satisfy the ethics requirement under this paragraph on or before the end of the individual's first license period.
(3) For each licensee with a property and casualty line of authority, at least two of the 24 credit hours of approved continuing education required under paragraph (1) must be on the topic of flood insurance. The following apply:
(i) For an individual licensed prior to the effective date of this subparagraph, the individual shall satisfy the flood insurance requirement under this paragraph within 12 months of the effective date of this subparagraph or by the end of the individual's license period existing on the effective date of this subparagraph, whichever period of time is longer.
(ii) For an individual licensed on or after the effective date of this subparagraph, the individual shall satisfy the flood insurance requirement under this paragraph on or before the end of the individual's first license period.
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Section 3. This act shall take effect in 180 days.
APPROVED--The 31st day of October, A.D. 2024.
JOSH SHAPIRO
