Provides with respect to insurance producer license reinstatement. (8/1/14)
Impact
This legislation impacts state laws on insurance licensure by centralizing the regulations surrounding license renewals and reinstatements. By providing a specific timeframe for reinstatement, it attempts to streamline the process for insurance producers while also ensuring that those who've allowed their licenses to lapse remain updated on required education and training. The provision of penalties for not notifying relevant authorities about address changes further emphasizes the importance of compliance in maintaining licensing integrity.
Summary
Senate Bill 260 addresses the process surrounding the reinstatement of insurance producer licenses that have lapsed. It stipulates that producers now have a revised window of two years from the expiration date to reinstate their licenses by fulfilling continuing education requirements and paying any due fees. Should the license lapse for more than two years, the bill mandates that the individual must reapply for a new license, adhering to all the current conditions set forth for issuing new licenses.
Sentiment
The sentiment towards SB 260 appears to be favorable among legislators, as evidenced by its unanimous passage in the House with a vote of 91 to 0. The bill's provisions are seen as beneficial for maintaining high standards within the insurance industry by ensuring that licensed producers are up to date with education requirements and reducing the administrative burden associated with license lapses.
Contention
While the bill was passed without opposition, there could be underlying contention regarding the implications it has for insurance producers who may inadvertently allow their licenses to lapse. The requirement for new applications after two years of lapse may create barriers for some producers, particularly those who face unforeseen circumstances. However, the overall legislative support indicates a consensus on the need for clear guidelines and penalties to encourage compliance and professionalism in the field.