Michigan House Bill HB4703

Michigan 2023-2024 Regular Session

• Introduced: 6/7/23
• Refer: 6/7/23

Caption

Insurance: producers; continuing education credit carryover system for insurance producers who belong to a professional insurance association; provide for. Amends sec. 1204c of 1956 PA 218 (MCL 500.1204c).

Impact

The proposed changes to the continuing education requirements are significant as they not only set a minimum credit hour requirement - specifically 24 hours which includes a mandatory 3 hours dedicated to ethics - but also allow producers to carry over excess hours earned beyond the required cap to subsequent periods. This encourages insurance producers to engage in further education and potentially improves the overall standard of practice in the industry, ultimately benefiting consumers. The bill also establishes a framework for recognizing contributions made by those who actively participate in professional insurance associations.

Summary

House Bill 4703 seeks to amend Michigan's Insurance Code of 1956, specifically targeting the continuing education requirements for insurance producers. The bill mandates that insurance producers must accumulate a set number of hours of continuing education every two years to maintain their licenses. It allows for the creation of a staggered system where license continuation dates can be spread throughout the year, potentially providing flexibility for license holders. The intention is to ensure that insurance producers stay updated with industry standards and practices through mandatory ongoing education.

Contention

Some points of contention surrounding HB 4703 include the implications of the estimated costs for insurance producers associated with obtaining continuing education credits, which may place a financial burden on some smaller firms or individual agents. Moreover, concerns have been raised regarding the potential bureaucracy involved in approving continuing education programs and the necessity of additional oversight from the Director of Insurance. Critics argue that while continuous education is beneficial, the implementation process should ensure it does not disproportionately affect smaller operators within the insurance market.