AL
Alabama Senate Bill SB139

Alabama 2023 Regular Session

Alabama Senate Bill SB139 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 SB139INTRODUCED
22 Page 0
33 EJA32C-1
44 By Senator Shelnutt
55 RFD: Banking and Insurance
66 First Read: 23-Mar-23
77 1
88 2
99 3
1010 4
1111 5 EJA32C-1 02/06/2023 FC (L) ma 2022-5156
1212 Page 1
1313 SYNOPSIS:
1414 Under existing law, insurance producers,
1515 independent adjusters, and title insurance agents are
1616 required to complete a prelicensing course of study
1717 approved by the Commissioner of Insurance prior to
1818 taking the appropriate licensing examination.
1919 This bill would delete the requirement for
2020 insurance producers, independent adjusters, and title
2121 insurance agents to complete a prelicensing course of
2222 study prior to taking the appropriate licensing
2323 examination.
2424 Under existing law, service representatives are
2525 employed by insurance producers in the sale of property
2626 insurance.
2727 This bill would eliminate the service
2828 representative license in this state prospectively. The
2929 bill would authorize a person holding a valid service
3030 representative license on the effective date of this
3131 act to continue to renew the license.
3232 A BILL
3333 TO BE ENTITLED
3434 AN ACT
3535 1
3636 2
3737 3
3838 4
3939 5
4040 6
4141 7
4242 8
4343 9
4444 10
4545 11
4646 12
4747 13
4848 14
4949 15
5050 16
5151 17
5252 18
5353 19
5454 20
5555 21
5656 22
5757 23
5858 24
5959 25
6060 26
6161 27
6262 28 SB139 INTRODUCEDSB139 INTRODUCED
6363 Page 2
6464 Relating to the Alabama Department of Insurance; to
6565 amend Sections 27-7-5, 27-7-14.1, 27-9A-6, 27-9A-8, 27-9A-9,
6666 27-9A-11, 27-25-4.1, and 27-25-4.3, Code of Alabama 1975, to
6767 delete the requirement for insurance producers, independent
6868 adjusters, apprentice independent adjusters, and title
6969 insurance agents to complete a prelicensing course of study
7070 approved by the Commissioner of Insurance prior to licensure
7171 by the department; and to eliminate the issuance of new
7272 service representative licenses prospectively and to authorize
7373 a current licensee to renew his or her license.
7474 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
7575 Section 1. Sections 27-7-5, 27-7-14.1, 27-9A-6,
7676 27-9A-8, 27-9A-9, 27-9A-11, 27-25-4.1, and 27-25-4.3, Code of
7777 Alabama 1975, are amended to read as follows:
7878 "§27-7-5
7979 (a) An individual applying for a resident insurance
8080 producer license shall make application to the commissioner on
8181 the Uniform Application , and an individual applying for a
8282 service representative license shall make application to the
8383 commissioner on the application prescribed by the
8484 commissioner, each declaring under penalty of refusal,
8585 suspension, or revocation of the license that the statements
8686 made in the application are true, correct, and complete to the
8787 best of the individual's knowledge and belief. Before
8888 approving the application, the commissioner shall find that
8989 the individual has satisfied all of the following:
9090 (1) The individual is at least 18 years of age.
9191 29
9292 30
9393 31
9494 32
9595 33
9696 34
9797 35
9898 36
9999 37
100100 38
101101 39
102102 40
103103 41
104104 42
105105 43
106106 44
107107 45
108108 46
109109 47
110110 48
111111 49
112112 50
113113 51
114114 52
115115 53
116116 54
117117 55
118118 56 SB139 INTRODUCEDSB139 INTRODUCED
119119 Page 3
120120 (2) The individual has not committed any act that is a
121121 ground for denial, suspension, or revocation set forth in
122122 Section 27-7-19.
123123 (3) The individual has completed a prelicensing course
124124 of study for the lines of authority for which the person has
125125 applied, consisting of 20 classroom hours per line of
126126 authority, or equivalent individual instruction, on the
127127 general principles of insurance for that line of authority,
128128 the course to be taught only by those educational
129129 institutions, junior or senior colleges, technical colleges,
130130 trade schools, insurance companies, or insurance trade
131131 organizations which hold written authority from the
132132 commissioner to issue certificates of completion.
133133 a. Each authority holder must apply annually for the
134134 continued authority to issue certificates under rules and
135135 regulations to be prescribed by the commissioner.
136136 b. Prior to writing the designated examination for
137137 license, the applicant must furnish a certificate of
138138 completion of the aforesaid prelicensing course from the
139139 authorized educational institution, insurance company, or
140140 insurance trade organization.
141141 c. All applicants for a license to transact the life
142142 lines of authority who are holders of the professional
143143 designation chartered life underwriter (CLU); all applicants
144144 for a license to transact the property lines of authority who
145145 are holders of the professional designations chartered
146146 property casualty underwriter (CPCU) or certified insurance
147147 counselor (CIC); or other similar professional insurance
148148 57
149149 58
150150 59
151151 60
152152 61
153153 62
154154 63
155155 64
156156 65
157157 66
158158 67
159159 68
160160 69
161161 70
162162 71
163163 72
164164 73
165165 74
166166 75
167167 76
168168 77
169169 78
170170 79
171171 80
172172 81
173173 82
174174 83
175175 84 SB139 INTRODUCEDSB139 INTRODUCED
176176 Page 4
177177 designations as the commissioner may prescribe by regulation
178178 shall be deemed to have completed the prelicensing course as
179179 prescribed in this subdivision.
180180 d. All applicants with a minimum of a bachelor's degree
181181 with a major in insurance from an accredited college or
182182 university are exempt from the requirements of this
183183 subdivision for all lines of authority.
184184 e. All applicants for a license to transact only the
185185 following lines of authority shall be exempt from the
186186 requirements of this subdivision:
187187 1. Variable life and variable annuity products.
188188 2. Limited lines insurance.
189189 f. All producers and service representatives who are
190190 lawfully licensed as such for a particular line of authority
191191 immediately prior to January 1, 2013, are exempt from the
192192 requirements of this subdivision for that line of authority
193193 unless, after January 1, 2013, the license is permitted to
194194 expire or is otherwise terminated and remains out of effect
195195 for a period of 12 consecutive months, in which case the
196196 exemption from the prelicensing course shall no longer be
197197 applicable.
198198 (4)(3) The individual has successfully passed the
199199 examination for the lines of authority for which the
200200 individual has applied, except that no examination shall be
201201 required of an applicant as follows:
202202 a. All applicants for a license to transact only one or
203203 more of the limited lines insurance.
204204 b. All applicants for a license to transact the
205205 85
206206 86
207207 87
208208 88
209209 89
210210 90
211211 91
212212 92
213213 93
214214 94
215215 95
216216 96
217217 97
218218 98
219219 99
220220 100
221221 101
222222 102
223223 103
224224 104
225225 105
226226 106
227227 107
228228 108
229229 109
230230 110
231231 111
232232 112 SB139 INTRODUCEDSB139 INTRODUCED
233233 Page 5
234234 variable life and variable annuity products line of authority.
235235 c. All producers lawfully licensed as such for a
236236 particular line of authority immediately prior to January 1,
237237 2013, are exempt from the requirements of this subdivision for
238238 that line of authority unless, after January 1, 2013, the
239239 license is permitted to expire or is otherwise terminated and
240240 remains out of effect for a period of 12 consecutive months,
241241 in which case the exemption from examination shall no longer
242242 be applicable.
243243 d. All service representatives.
244244 (5)(4) The individual has paid the fees set forth in
245245 Section 27-4-2.
246246 (6)(b) All producers seeking to be licensed for or
247247 holding the variable life and variable annuity product line of
248248 authority must also hold the life line of authority as an
249249 insurance producer and must also successfully complete the
250250 appropriate securities examinations and be registered under
251251 applicable federal and state securities laws.
252252 (b)(c) A business entity acting as an insurance
253253 producer is required to obtain an insurance producer license.
254254 Application shall be made using the Uniform Business Entity
255255 Application. Before approving the application, the
256256 commissioner shall find that the business entity has satisfied
257257 all of the following:
258258 (1) A licensed individual producer has been designated
259259 responsible for the business entity's compliance with the
260260 insurance laws, rules, and regulations of this state.
261261 (2) The business entity has paid the fees set forth in
262262 113
263263 114
264264 115
265265 116
266266 117
267267 118
268268 119
269269 120
270270 121
271271 122
272272 123
273273 124
274274 125
275275 126
276276 127
277277 128
278278 129
279279 130
280280 131
281281 132
282282 133
283283 134
284284 135
285285 136
286286 137
287287 138
288288 139
289289 140 SB139 INTRODUCEDSB139 INTRODUCED
290290 Page 6
291291 Section 27-4-2.
292292 (c)(d) The commissioner may require any documents
293293 reasonably necessary to verify the information contained in an
294294 application.
295295 (d)(e) Each insurer that sells, solicits, or negotiates
296296 any form of limited line credit insurance shall provide a
297297 program of instruction to each individual whose duties will
298298 include selling, soliciting, or negotiating limited line
299299 credit insurance a program of instruction .
300300 (f)(1) No new license as a service representative shall
301301 be issued by the commissioner after the effective date of the
302302 act adding this language.
303303 (2) Any person holding a valid service representative
304304 license on the effective date of the act adding this language
305305 may continue to renew the license after that date if the
306306 person otherwise meets the requirements of this section.
307307 (3) If any service representative license expires and
308308 is not renewed for a period of 12 consecutive months, the
309309 license shall not be renewed by the commissioner or otherwise
310310 reactivated."
311311 "§27-7-14.1
312312 (a) Unless denied licensure pursuant to Section
313313 27-7-19, persons who have met the requirements of Sections
314314 27-7-4.3 and 27-7-5 shall be issued an insurance producer
315315 license. An insurance producer may receive qualification for a
316316 license in one or more of the following lines of authority:
317317 (1) LIFE. Insurance coverage on human lives including
318318 benefits of endowment and annuities, and may include benefits
319319 141
320320 142
321321 143
322322 144
323323 145
324324 146
325325 147
326326 148
327327 149
328328 150
329329 151
330330 152
331331 153
332332 154
333333 155
334334 156
335335 157
336336 158
337337 159
338338 160
339339 161
340340 162
341341 163
342342 164
343343 165
344344 166
345345 167
346346 168 SB139 INTRODUCEDSB139 INTRODUCED
347347 Page 7
348348 in the event of death or dismemberment by accident and
349349 benefits for disability income.
350350 (2) ACCIDENT AND HEALTH OR SICKNESS, commonly known as
351351 disability. Insurance coverage for sickness, bodily injury, or
352352 accidental death and may include benefits for disability
353353 income.
354354 (3) PROPERTY. Insurance coverage for the direct or
355355 consequential loss or damage to property of every kind.
356356 (4) CASUALTY. Insurance coverage against legal
357357 liability, including that for death, injury, or disability or
358358 damage to real or personal property, and surety.
359359 (5) VARIABLE LIFE and VARIABLE ANNUITY PRODUCTS.
360360 Insurance coverage provided under variable life insurance
361361 contracts and variable annuities.
362362 (6) PERSONAL LINES. Property and casualty insurance
363363 coverage sold to individuals and families for primarily
364364 noncommercial purposes.
365365 (7) CREDIT. Limited line credit insurance.
366366 (8) BAIL BOND. Surety coverage for bail, as defined in
367367 Chapter 13 of Title 15.
368368 (9) RENTAL VEHICLE. As described in Section 27-7-5.1.
369369 (10) CROP. Insurance providing protection against
370370 damage to crops from unfavorable weather conditions, fire, or
371371 lightning, flood, hail, insect infestation, disease or other
372372 yield-reducing conditions or peril provided by the private
373373 insurance market, or that is subsidized by the Federal Crop
374374 Insurance Corporation, including Multi-Peril Crop Insurance.
375375 (11) PORTABLE ELECTRONICS. As defined in Section
376376 169
377377 170
378378 171
379379 172
380380 173
381381 174
382382 175
383383 176
384384 177
385385 178
386386 179
387387 180
388388 181
389389 182
390390 183
391391 184
392392 185
393393 186
394394 187
395395 188
396396 189
397397 190
398398 191
399399 192
400400 193
401401 194
402402 195
403403 196 SB139 INTRODUCEDSB139 INTRODUCED
404404 Page 8
405405 27-22A-1.
406406 (12) TRAVEL. As described in Section 27-7-5.2.
407407 (13) Any other line of insurance permitted under state
408408 laws or regulations.
409409 (b) Unless denied licensure pursuant to Section
410410 27-7-19, persons who have met the requirements of Section
411411 27-7-5 shall be issued a service representative license. A
412412 service representative shall receive qualification for a
413413 license in the following lines of authority:
414414 (1) PROPERTY. Insurance coverage for the direct or
415415 consequential loss or damage to property of every kind.
416416 (2) CASUALTY. Insurance coverage against legal
417417 liability, including that for death, injury, or disability or
418418 damage to real or personal property, and surety.
419419 (c)(b) An insurance producer or service representative
420420 license shall remain in effect unless revoked or suspended as
421421 long as the license renewal fee set forth in Section 27-8A-9
422422 is paid and education requirements for resident individual
423423 producers and service representatives set forth in Chapter 8A
424424 of this title are met by the due date.
425425 (d)(c) An individual insurance producer who allows his
426426 or her license to lapse may, within 12 months from the due
427427 date of the renewal fee, may reinstate the same license
428428 without the necessity of completing the prelicensing course or
429429 passing a written examination; a service representative who
430430 allows his or her license to lapse may, within 12 months from
431431 the due date of the renewal fee, may reinstate the same
432432 license without the necessity of completing the prelicensing
433433 197
434434 198
435435 199
436436 200
437437 201
438438 202
439439 203
440440 204
441441 205
442442 206
443443 207
444444 208
445445 209
446446 210
447447 211
448448 212
449449 213
450450 214
451451 215
452452 216
453453 217
454454 218
455455 219
456456 220
457457 221
458458 222
459459 223
460460 224 SB139 INTRODUCEDSB139 INTRODUCED
461461 Page 9
462462 course; however, a penalty in the amount of double the unpaid
463463 renewal fee shall be required for any renewal fee received
464464 after the due date.
465465 (e)(d) A licensed insurance producer or service
466466 representative who is unable to comply with license renewal
467467 procedures due to military service or some other extenuating
468468 circumstance, e.g., a long-term medical disability, may
469469 request a waiver of those procedures. The producer or service
470470 representative may also request a waiver of any examination
471471 requirement or any other fine or sanction imposed for failure
472472 to comply with renewal procedures."
473473 "§27-9A-6
474474 (a) An individual applying for a resident independent
475475 adjuster license shall apply to the commissioner on the
476476 appropriate NAIC Uniform Individual Application and declare
477477 under penalty of suspension, revocation, or refusal of the
478478 license that the statements made in the application are true,
479479 correct, and complete to the best of the individual's
480480 knowledge and belief. Before approving the application, the
481481 commissioner shall find that the individual meets all of the
482482 following:
483483 (1) Is at least 18 years of age.
484484 (2) Is eligible to designate this state as his or her
485485 home state.
486486 (3) Has not committed any act that is a ground for
487487 probation, suspension, revocation, or refusal of an
488488 independent adjuster's license as set forth in Section
489489 27-9A-12.
490490 225
491491 226
492492 227
493493 228
494494 229
495495 230
496496 231
497497 232
498498 233
499499 234
500500 235
501501 236
502502 237
503503 238
504504 239
505505 240
506506 241
507507 242
508508 243
509509 244
510510 245
511511 246
512512 247
513513 248
514514 249
515515 250
516516 251
517517 252 SB139 INTRODUCEDSB139 INTRODUCED
518518 Page 10
519519 (4) Has completed a prelicensing course of study for
520520 the line of authority for which the person has applied.
521521 (5)(4) Has successfully passed the examination for the
522522 line of authority for which the personindividual has applied.
523523 (6)(5) Has paid the fees set forth in Section 27-4-2.
524524 (b) The commissioner may contract with non-governmental
525525 entities, including the NAIC, to perform any ministerial
526526 functions, including the collection of fees and data, related
527527 to licensing that the commissioner may deem appropriate. The
528528 commissioner may require that license applications, license
529529 renewal applications, and supporting documentation be filed
530530 and all required fees and charges be paid electronically
531531 through systems operated or maintained by the non-governmental
532532 entities.
533533 (c) No resident of another state or of the District of
534534 Columbia or of Canada may be licensed pursuant to this section
535535 or may designate Alabama as his or her home state unless the
536536 personindividual has successfully passed the independent
537537 adjuster examination and has otherwise complied with the other
538538 applicable portions of this section.
539539 (d) A business entity applying for a resident
540540 independent adjuster license shall apply to the commissioner
541541 on the appropriate NAIC Uniform Business Entity Application
542542 and declare under penalty of suspension, revocation, or
543543 refusal of the license that the statements made in the
544544 application are true, correct, and complete to the best of the
545545 business entity's knowledge and belief. Before approving the
546546 application, the commissioner shall find that the business
547547 253
548548 254
549549 255
550550 256
551551 257
552552 258
553553 259
554554 260
555555 261
556556 262
557557 263
558558 264
559559 265
560560 266
561561 267
562562 268
563563 269
564564 270
565565 271
566566 272
567567 273
568568 274
569569 275
570570 276
571571 277
572572 278
573573 279
574574 280 SB139 INTRODUCEDSB139 INTRODUCED
575575 Page 11
576576 entity meets all of the following :
577577 (1) Is eligible to designate this state as its home
578578 state.
579579 (2) As applicable, has qualified or registered with the
580580 office of the Secretary of State to engage in business in this
581581 state.
582582 (3) Has designated an individual independent adjuster
583583 licensed in this state as responsible for the business
584584 entity's compliance with this chapter and with the insurance
585585 laws and rules of this state.
586586 (4) Has not committed an act that is a ground for
587587 probation, suspension, revocation, or refusal of an
588588 independent adjuster's license as set forth in Section
589589 27-9A-12.
590590 (5) Has paid the fees set forth in Section 27-4-2.
591591 (e) The commissioner may require any documents
592592 reasonably necessary to verify the information contained in
593593 the application."
594594 "§27-9A-8
595595 (a)(1) Every individual subject to the examination
596596 required in subsection (b) shall first complete a prelicensing
597597 course consisting of 20 classroom hours per line of authority,
598598 or equivalent individual instruction.
599599 (2) The prelicensing course shall have been completed
600600 within 12 months before the date of the related examination as
601601 shown on the certificate furnished by the prelicensing course
602602 provider.
603603 (3) Every prelicensing course provider shall apply
604604 281
605605 282
606606 283
607607 284
608608 285
609609 286
610610 287
611611 288
612612 289
613613 290
614614 291
615615 292
616616 293
617617 294
618618 295
619619 296
620620 297
621621 298
622622 299
623623 300
624624 301
625625 302
626626 303
627627 304
628628 305
629629 306
630630 307
631631 308 SB139 INTRODUCEDSB139 INTRODUCED
632632 Page 12
633633 annually for the continued authority to issue certificates of
634634 completion under rules to be prescribed by the commissioner.
635635 (4) At the time of initial approval and annually
636636 thereafter, the commissioner shall collect from each
637637 prelicensing course provider a fee set by the commissioner not
638638 to exceed one hundred dollars ($100). The fee shall be
639639 deposited in the State Treasury to the credit of the Insurance
640640 Department Fund. Public institutions shall be exempt from
641641 paying the fee, but shall otherwise be subject to the rules
642642 applicable to other providers.
643643 (b)(1)(a) An individual intending to apply for an
644644 independent adjuster license shall pass a written examination
645645 unless exempt pursuant to Section 27-9A-9.
646646 (2)(b) The examination shall test the knowledge of the
647647 individual concerning the lines of authority for which
648648 application is made, the duties and responsibilities of an
649649 independent adjuster, and the insurance laws and
650650 regulationsrules of this state. Examinations required by this
651651 section shall be developed and conducted under rules
652652 prescribed by the commissioner.
653653 (3)(c) Each individual applying for an examination
654654 shall furnish a certificate of completion of the prelicensing
655655 course from an authorized prelicensing course provider and pay
656656 a non-refundable nonrefundable fee prescribed by the
657657 commissioner as set forth in Section 27-4-2.
658658 (4)(d) The commissioner may make arrangements,
659659 including contracting with an outside testing service, for
660660 administering examinations and collecting the nonrefundable
661661 309
662662 310
663663 311
664664 312
665665 313
666666 314
667667 315
668668 316
669669 317
670670 318
671671 319
672672 320
673673 321
674674 322
675675 323
676676 324
677677 325
678678 326
679679 327
680680 328
681681 329
682682 330
683683 331
684684 332
685685 333
686686 334
687687 335
688688 336 SB139 INTRODUCEDSB139 INTRODUCED
689689 Page 13
690690 fee set forth in Section 27-4-2.
691691 (5)(e) An individual who fails to appear for the
692692 examination as scheduled or fails to pass the examination
693693 shall reapply for an examination and remit all required fees
694694 and forms before being rescheduled for another examination.
695695 (6)(f) No individual who has taken and failed to pass
696696 two examinations given pursuant to this section for a
697697 particular line of insurance shall be entitled to take any
698698 further examination for that line of insurance until after the
699699 expiration of three months from the date of the last
700700 examination which the individual failed to pass. If the
701701 individual fails to pass the examination after two more
702702 attempts, the individual shall not be eligible to take any
703703 further examination for that line of insurance until after the
704704 expiration of six months from the date of the last
705705 unsuccessful examination. An examination fee shall be paid for
706706 each and every examination."
707707 "§27-9A-9
708708 (a) An individual applicant for an independent adjuster
709709 license in this state shall not be required to complete any
710710 prelicensing course or an examination if the person is
711711 currently licensed in another state for the same line or lines
712712 of authority based on an independent adjuster examination or
713713 if such state license has expired and the application is
714714 received by this state within 90 days of expiration. The
715715 applicant shall either provide certification from the other
716716 state that the applicant's license is currently in good
717717 standing or was in good standing at the time of expiration or
718718 337
719719 338
720720 339
721721 340
722722 341
723723 342
724724 343
725725 344
726726 345
727727 346
728728 347
729729 348
730730 349
731731 350
732732 351
733733 352
734734 353
735735 354
736736 355
737737 356
738738 357
739739 358
740740 359
741741 360
742742 361
743743 362
744744 363
745745 364 SB139 INTRODUCEDSB139 INTRODUCED
746746 Page 14
747747 the state's producer database records maintained by the NAIC
748748 must indicate that the applicant is or was licensed in good
749749 standing. The certification must be of a license with the same
750750 line of authority for which the individual has applied.
751751 (b) A personAn individual licensed as an independent
752752 adjuster in another state based on an independent adjuster
753753 examination who, within 90 days of establishing legal
754754 residency in this state, applies to become a resident
755755 independent adjuster licensee pursuant to Section 27-9A-6
756756 shall not be required to complete a prelicensing course or an
757757 examination.
758758 (c) An individual who applies for an independent
759759 adjuster license in this state who was previously licensed as
760760 an independent adjuster in this state shall not be required to
761761 complete a prelicensing course or an examination, but this
762762 exemption is only available if the application is received
763763 within 12 months of the cancellation of the applicant's
764764 previous license in this state and if, at the time of
765765 cancellation, the applicant was in good standing in this
766766 state.
767767 (d) An individual applicant for an independent adjuster
768768 license in this state shall not be required to complete a
769769 prelicensing course or an examination if the applicant was
770770 previously employed for a minimum of 20 years as an adjuster
771771 in this state by an insurance company licensed in this state
772772 and the applicant submits his or her application within 12
773773 months of leaving the employment of the company. The insurance
774774 company, upon request, shall certify to the department the
775775 365
776776 366
777777 367
778778 368
779779 369
780780 370
781781 371
782782 372
783783 373
784784 374
785785 375
786786 376
787787 377
788788 378
789789 379
790790 380
791791 381
792792 382
793793 383
794794 384
795795 385
796796 386
797797 387
798798 388
799799 389
800800 390
801801 391
802802 392 SB139 INTRODUCEDSB139 INTRODUCED
803803 Page 15
804804 time period that the applicant was employed by the insurance
805805 company.
806806 (e) An individual applicant for an independent adjuster
807807 license in this state shall not be required to complete any
808808 prelicensing course or examination if the applicant holds a
809809 certification from a person or entity approved by the
810810 commissioner that provides adjuster education and training and
811811 that requires, as a prerequisite to certification, an
812812 examination substantially equivalent to that of this state.
813813 The applicant shall provide evidence of current
814814 certification."
815815 "§27-9A-11
816816 (a) The apprentice independent adjuster license is a
817817 temporary license for an individual residing in this state who
818818 is qualified for an independent adjuster license except as to
819819 having taken and passed for taking and passing the
820820 prelicensing course and examination for independent adjuster .
821821 (b) An individual applying for an apprentice
822822 independent adjuster license shall apply to the commissioner
823823 on the appropriate NAIC Uniform Individual Application and
824824 declare under penalty of suspension, revocation, or refusal of
825825 the license that the statements made in the application are
826826 true, correct, and complete to the best of the individual's
827827 knowledge and belief. Before approving the application, the
828828 commissioner shall find that the individual meets all of the
829829 following:
830830 (1) Is at least 18 years of age.
831831 (2) Is a resident of this state.
832832 393
833833 394
834834 395
835835 396
836836 397
837837 398
838838 399
839839 400
840840 401
841841 402
842842 403
843843 404
844844 405
845845 406
846846 407
847847 408
848848 409
849849 410
850850 411
851851 412
852852 413
853853 414
854854 415
855855 416
856856 417
857857 418
858858 419
859859 420 SB139 INTRODUCEDSB139 INTRODUCED
860860 Page 16
861861 (3) Has a business or mailing address in this state.
862862 (4) Has not committed any act that is a ground for
863863 probation, suspension, revocation, or denial of licensure as
864864 set forth in Section 27-9A-12.
865865 (5) Has paid the fees for an individual independent
866866 adjuster license as set forth in Section 27-4-2.
867867 (c) The apprentice independent adjuster license shall
868868 be subject to all of the following terms and conditions:
869869 (1) Accompanying the apprentice adjuster application
870870 shall be an attestation from an independent adjuster licensed
871871 in this state with the same lines of authority for which the
872872 apprentice has applied certifying that the apprentice will be
873873 subject to training, direction, and control by the licensed
874874 independent adjuster and further certifying that the licensed
875875 independent adjuster assumes responsibility for the actions of
876876 the apprentice in the apprentice's capacity as an independent
877877 adjuster. A licensed independent adjuster shall not supervise
878878 more than five active apprentice adjuster licensees at any
879879 given time.
880880 (2) The apprentice independent adjuster is only
881881 authorized to adjust claims in this state.
882882 (3) The apprentice licensee is restricted to
883883 participation in the adjusting of claims subject to the review
884884 and final determination of the claim by the supervising
885885 licensed independent adjuster.
886886 (4) Compensation of an apprentice independent adjuster
887887 shall be on a salaried or hourly basis only.
888888 (5) At any time during the period of the license the
889889 421
890890 422
891891 423
892892 424
893893 425
894894 426
895895 427
896896 428
897897 429
898898 430
899899 431
900900 432
901901 433
902902 434
903903 435
904904 436
905905 437
906906 438
907907 439
908908 440
909909 441
910910 442
911911 443
912912 444
913913 445
914914 446
915915 447
916916 448 SB139 INTRODUCEDSB139 INTRODUCED
917917 Page 17
918918 apprentice independent adjuster may complete the prelicensing
919919 course and take the examination required by Section 27-9A-8.
920920 If the apprentice independent adjuster successfully completes
921921 the independent adjuster examination, the apprentice
922922 independent adjuster license shall automatically terminate and
923923 an independent adjuster license shall be issued in place
924924 thereof.
925925 (6) The apprentice independent adjuster license is
926926 valid for a period not to exceed 12 months and is
927927 nonrenewable. An individual may only hold an apprentice
928928 independent adjuster license once in his or her lifetime.
929929 (7) An apprentice independent adjuster shall be subject
930930 to Sections 27-9A-12, 27-9A-14, 27-9A-15, and Chapter 12 of
931931 this title to the same extent as if licensed as an independent
932932 adjuster in this state."
933933 "§27-25-4.1
934934 (a) The commissioner may contract with non-governmental
935935 entities, including NAIC, to perform any ministerial
936936 functions, including the collection of fees and data, related
937937 to licensing that the commissioner may deem appropriate. The
938938 commissioner may require that license applications, license
939939 renewal applications, notices of appointments and appointment
940940 terminations, and supporting documentation be filed and all
941941 required fees and charges be paid electronically through
942942 systems operated or maintained by the non-governmental
943943 entities.
944944 (b) An individual applying for a title insurance agent
945945 license shall apply to the commissioner on the appropriate
946946 449
947947 450
948948 451
949949 452
950950 453
951951 454
952952 455
953953 456
954954 457
955955 458
956956 459
957957 460
958958 461
959959 462
960960 463
961961 464
962962 465
963963 466
964964 467
965965 468
966966 469
967967 470
968968 471
969969 472
970970 473
971971 474
972972 475
973973 476 SB139 INTRODUCEDSB139 INTRODUCED
974974 Page 18
975975 NAIC Uniform Individual Application and declare under penalty
976976 of suspension, revocation, or refusal of the license that the
977977 statements made in the application are true, correct, and
978978 complete to the best of the individual's knowledge and belief.
979979 Before approving the application, the commissioner shall find
980980 that the individual meets all of the following :
981981 (1) Is at least 19 years of age.
982982 (2) Is a bona fide resident and citizen of this state
983983 or is a full-time employee of a duly licensed title insurance
984984 agent whose principal place of business is physically located
985985 in this state.
986986 (3) Has not committed any act that is a ground for
987987 probation, suspension, revocation, or refusal of license as
988988 set forth in Section 27-25-4.5.
989989 (4) Has completed the prelicensing course of study for
990990 title insurance as required in Section 27-25-4.3.
991991 (5)(4) Has successfully passed the examination for
992992 title insurance as required in Section 27-25-4.3.
993993 (6)(5) Has paid the fees set forth in Section
994994 27-25-4.7.
995995 (c) A business entity applying for a title insurance
996996 agent license shall apply to the commissioner on the
997997 appropriate NAIC Uniform Business Entity Application and
998998 declare under penalty of suspension, revocation, or refusal of
999999 the license that the statements made in the application are
10001000 true, correct, and complete to the best of the business
10011001 entity's knowledge and belief. Before approving the
10021002 application, the commissioner shall find that the business
10031003 477
10041004 478
10051005 479
10061006 480
10071007 481
10081008 482
10091009 483
10101010 484
10111011 485
10121012 486
10131013 487
10141014 488
10151015 489
10161016 490
10171017 491
10181018 492
10191019 493
10201020 494
10211021 495
10221022 496
10231023 497
10241024 498
10251025 499
10261026 500
10271027 501
10281028 502
10291029 503
10301030 504 SB139 INTRODUCEDSB139 INTRODUCED
10311031 Page 19
10321032 entity meets all of the following :
10331033 (1) Is a domestic entity properly formed and existing
10341034 under Title 10A and whose principal place of business is
10351035 physically located in this state.
10361036 (2) Has designated an individual title insurance agent
10371037 licensed in this state as responsible for the business
10381038 entity's compliance with this chapter and with the insurance
10391039 laws, rules, and regulations of this state.
10401040 (3) Has not committed an act that is a ground for
10411041 probation, suspension, revocation, or refusal of license as
10421042 set forth in Section 27-25-4.5.
10431043 (4) Has paid the fees set forth in Section 27-25-4.7.
10441044 (d) The commissioner may require any documents
10451045 reasonably necessary to verify the information contained in
10461046 the application."
10471047 "§27-25-4.3
10481048 (a)(1) Every individual subject to the examination
10491049 required in subsection (b) shall first complete a prelicensing
10501050 course consisting of 20 classroom hours or equivalent
10511051 individual instruction on the general principles of title
10521052 insurance, the duties and responsibilities of a title
10531053 insurance agent, and the title insurance laws and regulations
10541054 of this state. The course shall be taught only by those
10551055 educational institutions, title insurers, or title insurance
10561056 trade organizations which hold written authority from the
10571057 commissioner.
10581058 (2) The prelicensing course must have been completed
10591059 within 12 months before the date of the examination as shown
10601060 505
10611061 506
10621062 507
10631063 508
10641064 509
10651065 510
10661066 511
10671067 512
10681068 513
10691069 514
10701070 515
10711071 516
10721072 517
10731073 518
10741074 519
10751075 520
10761076 521
10771077 522
10781078 523
10791079 524
10801080 525
10811081 526
10821082 527
10831083 528
10841084 529
10851085 530
10861086 531
10871087 532 SB139 INTRODUCEDSB139 INTRODUCED
10881088 Page 20
10891089 on the certificate furnished by the prelicensing course
10901090 provider.
10911091 (3) Every prelicensing course provider shall apply
10921092 annually for the continued authority to issue certificates of
10931093 completion under rules and regulations to be prescribed by the
10941094 commissioner.
10951095 (4) At the time of initial approval and annually
10961096 thereafter, the commissioner shall collect from each
10971097 prelicensing course provider the fee set forth in Section
10981098 27-25-4.7. Public institutions shall be exempt from paying the
10991099 fee but shall otherwise be subject to the rules and
11001100 regulations applicable to other providers.
11011101 (b)(1)(a)(1) An individual intending to apply for a
11021102 title insurance agent license shall first pass a written
11031103 examination unless exempt pursuant to subsection (c)(b).
11041104 (2) The examination shall test the knowledge of the
11051105 individual concerning title insurance, the duties and
11061106 responsibilities of a title insurance agent, and the insurance
11071107 laws of this state. Examinations required by this section
11081108 shall be developed and conducted under rules prescribed by the
11091109 commissioner.
11101110 (3) Each individual applying for an examination shall
11111111 furnish a certificate of completion of the prelicensing course
11121112 from an authorized prelicensing course provider and pay a
11131113 nonrefundable examination fee pursuant to Section 27-25-4.7.
11141114 (4) The commissioner may make arrangements, including
11151115 contracting with an outside testing service, for administering
11161116 examinations and collecting the nonrefundable fee prescribed
11171117 533
11181118 534
11191119 535
11201120 536
11211121 537
11221122 538
11231123 539
11241124 540
11251125 541
11261126 542
11271127 543
11281128 544
11291129 545
11301130 546
11311131 547
11321132 548
11331133 549
11341134 550
11351135 551
11361136 552
11371137 553
11381138 554
11391139 555
11401140 556
11411141 557
11421142 558
11431143 559
11441144 560 SB139 INTRODUCEDSB139 INTRODUCED
11451145 Page 21
11461146 by the commissioner, in which case the fees approved by the
11471147 commissioner for the examinations may be paid directly to the
11481148 outside testing service, and the fee shall be in lieu of, but
11491149 not in excess of, the fees for the examination set forth in
11501150 Section 27-25-4.7.
11511151 (5) An individual who fails to appear for the
11521152 examination as scheduled or fails to pass the examination
11531153 shall reapply for an examination and remit all required fees
11541154 and forms before being rescheduled for another examination.
11551155 (6) No individual who has taken and failed to pass two
11561156 examinations given pursuant to this section shall be entitled
11571157 to take any further title insurance agent examinations until
11581158 after the expiration of three months from the date of the last
11591159 examination which the individual failed to pass. If the
11601160 individual thereafter fails to pass the examination after two
11611161 more attempts, the individual shall not be eligible to take
11621162 any further title insurance agent examinations until after the
11631163 expiration of six months from the date of the last
11641164 unsuccessful examination. An examination fee shall be paid for
11651165 each and every examination.
11661166 (c)(b) An individual shall be exempt from the
11671167 examination requirement of subsection (b)(a) only as follows:
11681168 (1) If, within 90 days after January 1, 2013, the
11691169 applicant can establish to the satisfaction of the
11701170 commissioner that for a period of at least five years
11711171 preceding January 1, 2013, the applicant has been an
11721172 authorized signatory to commitments, title insurance policies,
11731173 and endorsements to title insurance policies issued by the
11741174 561
11751175 562
11761176 563
11771177 564
11781178 565
11791179 566
11801180 567
11811181 568
11821182 569
11831183 570
11841184 571
11851185 572
11861186 573
11871187 574
11881188 575
11891189 576
11901190 577
11911191 578
11921192 579
11931193 580
11941194 581
11951195 582
11961196 583
11971197 584
11981198 585
11991199 586
12001200 587
12011201 588 SB139 INTRODUCEDSB139 INTRODUCED
12021202 Page 22
12031203 title insurance agent on behalf of a title insurer properly
12041204 authorized to conduct the business of title insurance in this
12051205 state.
12061206 (2) If the individual was previously licensed as a
12071207 title insurance agent in this state after having passed the
12081208 examination required by subsection (b)(a) or being exempt from
12091209 the examination under subdivision (1), this exemption is
12101210 available only if the application is received within 12 months
12111211 of the cancellation of the applicant's previous license in
12121212 this state and if, at the time of cancellation, the applicant
12131213 was in good standing in this state."
12141214 Section 2. This act shall become effective on January
12151215 1, 2024, following its passage and approval by the Governor,
12161216 or its otherwise becoming law.
12171217 589
12181218 590
12191219 591
12201220 592
12211221 593
12221222 594
12231223 595
12241224 596
12251225 597
12261226 598
12271227 599
12281228 600
12291229 601
12301230 602