Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1252 Compare Versions

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Version 2 (New)

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4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	2nd Session of the 58th Legislature (2022)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 1252 By: Quinn of the Senate
7	37
8	38		and
9	39
10	40		Sneed of the House
11	41
12	42
13	43
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15	45		An Act relating to Oklahoma Producer Licensing ;
16	46		amending 36 O.S. 2021, Sections 1435.2, 1435.3,
17	47		1435.6, 1435.22, 1435.23, 1435.26, and 1435.29, which
18	48		relate to the Oklahoma Producer Licensing Act;
19	49		modifying definition s; requiring customer service
20	50		representative and insurance consultant hold certain
21	51		license; conforming language; updating statutory
22	52		language; repealing 36 O.S. 2021, Sections 1435.24,
23	53		1435.30, and 1435.31, which relate to insurance
24	54		consultant licensure and customer service
25	55		representative licens ure and appointment; and
26	56		providing an effective date.
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31		-	SUBJECT: Insurance producer licensing
32		-
33	61		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
34		-
35	62		SECTION 1. AMENDATORY 36 O.S. 2021, Section 1435.2, is
36	63		amended to read as follows:
37		-
38	64		Section 1435.2. As used in the Oklahoma Producer Licensing Act:
39		-
40	65		1. “Commissioner” means the Insurance Commissioner;
41		-
42	66		2. “Business entity” means a corporation, association,
43	67		partnership, limited liability company, limited partnership, or
44	68		other legal entity;
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47		-	ENR. S. B. NO. 1252 Page 2
48	96		3. “Customer service representative ” means an individual who is
49	97		required to be licensed as an insurance producer under the laws of
50	98		this state appointed by an insurance producer, surp lus lines
51	99		insurance broker, managing general agent, or insurance agency to
52	100		assist and assists the insurance producer, broker, or agency in
53	101		transacting the business of insurance from the office of the
54	102		insurance producer, broker, or agency and whose salary may vary
55	103		based on the production or volume of applications or premiums ;
56		-
57	104		4. “Home state” means the District of Columbia and any state or
58	105		territory of the Unite d States in which an insurance producer
59	106		maintains the producer’s principal place of residence or p rincipal
60	107		place of business and is licensed to act as an insurance producer;
61		-
62	108		5. “Insurance” means any of the lines of authority in this
63	109		title, including workers’ compensation insurance. Any insurer
64	110		approved to offer workers’ compensation insurance may app oint
65	111		insurance producers. All producers appointed for workers ’
66	112		compensation insurance products must be licensed as insurance
67	113		producers by the Oklahoma Insura nce Department;
68		-
69	114		6. “Insurance consultant” means an individual or legal entity
70	115		who is required to be licensed as an insurance producer und er the
71	116		laws of this state and , for a fee, is held out to the public as
72	117		engaged in the business of offering any advice, counsel, opinion or
73	118		service with respect to the benefits, advantages, or disadvantag es
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74	146		promised under any policy of insurance that could be issued or
75	147		delivered in this state;
76		-
77	148		7. “Insurance producer” means a person required to be licensed
78	149		under the laws of this sta te to sell, solicit or negotiate insurance
79	150		and includes a customer service represen tative and an insurance
80	151		consultant. Any person not duly licensed a s an insurance producer,
81	152		surplus lines insurance broker, or limited lines producer who
82	153		solicits a policy of insurance on behalf of an insurer shall be
83	154		deemed to be acting as an insurance agent w ithin the meaning of the
84	155		Oklahoma Producer Licensing Act, and shall thereby become liable for
85	156		all the duties, requirements, liabilities, and penalties to which an
86	157		insurance producer of the company is subject, and the company by
87	158		issuing the policy of insura nce shall thereby accept and acknowledge
88	159		the person as its age nt in the transaction. For purposes of the
89	160		laws of this state and the Oklahoma Insurance Code, the term
90		-
91		-	ENR. S. B. NO. 1252 Page 3
92	161		“insurance agent” means an insurance producer pro perly appointed by
93	162		an insurance carrier to act as an agent for that insurance carrier,
94	163		pursuant to Section 1435.15 of this title;
95		-
96	164		8. “Insurer” has the meaning set out in Section 103 of this
97	165		title;
98		-
99	166		9. “License” means a document issued by the Insurance
100	167		Commissioner of this state authorizing a pe rson to act as an
101	168		insurance producer for the lines of authorit y specified in the
102	169		document. The license itself does not create any authority, actual,
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103	197		apparent or inherent, in the holder to represent or commit an
104	198		insurance carrier;
105		-
106	199		10. “Limited line credit insurance” includes credit life,
107	200		credit disability, credit pr operty, credit unemployment, involuntary
108	201		unemployment, mortgage life, mortgage guaranty, mortgage disabili ty,
109	202		guaranteed automobile protection insurance, known as “gap”
110	203		insurance, and any other form of insurance offered in connection
111	204		with an extension of c redit that is limited to partially or wholly
112	205		extinguishing that credit obligation that the Insurance Commi ssioner
113	206		determines should be designated a form of limited line credit
114	207		insurance;
115		-
116	208		11. “Limited line credit insurance producer ” means a person who
117	209		sells, solicits or negotiates one or more forms of limited line
118	210		credit insurance coverage to individuals throu gh a master,
119	211		corporate, group or individual poli cy;
120		-
121	212		12. “Limited lines insurance ” means limited line credit and
122	213		those lines of insurance defined in S ection 1435.20 of this title or
123	214		any other line of insurance the Insurance Commissioner deems
124	215		necessary to recognize for the purposes of complying with sub section
125	216		E of Section 1435.9 of this titl e;
126		-
127	217		13. “Limited lines producer” means a person who is authori zed
128	218		by the Commissioner to sell, solicit or negotiate limited lines
129	219		insurance. For purposes of the laws o f this state and the Oklahoma
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130	247		Insurance Code, the term “limited insurance representative ” shall
131	248		have the same meaning as the term “limited lines producer”;
132		-
133		-
134		-	ENR. S. B. NO. 1252 Page 4
135	249		14. “Managing general agent ” means an individual or legal
136	250		entity appointed, as an independent contr actor, by one or more
137	251		insurers to exercise gener al supervision over the business of the
138	252		insurer in this state, with authority to appoint insurance pro ducers
139	253		for the insurer, and to terminate appointments for the insurer;
140		-
141	254		15. “Negotiate” means the act of conferring directly with or
142	255		offering advice direc tly to a purchaser or prospective purcha ser of
143	256		a particular contract of insurance concerning any of th e substantive
144	257		benefits, terms or conditions of the contract, provided that the
145	258		person engaged in that act either sells insurance or obtains
146	259		insurance from insurers for purchaser;
147		-
148	260		16. “Person” means an individual or a business entity;
149		-
150	261		17. “Sell” means to exchange a contract of insurance, by any
151	262		means, for money or its equivalent, on behalf of an insurance
152	263		company;
153		-
154	264		18. “Solicit” means attempting to sell in surance or asking or
155	265		urging a person to apply for a particular kind of insurance from a
156	266		particular company;
157		-
158	267		19. “Surplus lines insurance broker ” means an individual or
159	268		legal entity who solicits, negotiates, or procures a policy of
160	269		insurance in an insuranc e company not licensed to transact busin ess
161	270		in this state which cannot be procured from insurers licen sed to do
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162	298		business in this state. All transactions under such license shall
163	299		be subject to Article 11 of t he Oklahoma Insurance Code;
164		-
165	300		20. “Terminate” means the cancellation of the relationship
166	301		between an insurance producer and the insurer or the terminati on of
167	302		a producer’s authority to transact insurance;
168		-
169	303		21. “Uniform Business Entity Application ” means the current
170	304		version of the National Association of In surance Commissioners
171	305		(NAIC) Uniform Business Entity Application for resident and
172	306		nonresident business entities; and
173		-
174	307		22. “Uniform Application” means the current version of the NAIC
175	308		Uniform Application for re sident and nonresident producer licensing.
176		-
177		-
178		-	ENR. S. B. NO. 1252 Page 5
179	309		SECTION 2. AMENDATORY 36 O.S. 2021, Section 1435.3, is
180	310		amended to read as f ollows:
181		-
182	311		Section 1435.3. A. Every insurance producer , customer service
183	312		representative, as defined pursuant to p aragraph 7 of Section 1435.2
184	313		of this title, or limited lines producer who solicits or ne gotiates
185	314		an application for insurance of any kind shall, in any controversy
186	315		between the insured or the insured ’s beneficiary and the insurer, be
187	316		regarded as representin g the insurer and not the insured or the
188	317		insured’s beneficiary. This provision shall no t affect the apparent
189	318		authority of an insurance producer.
190		-
191	319		B. Every surplus lin es insurance broker who solicits an
192	320		application for insurance of any kind shall, in any c ontroversy
193	321		between the insured or the insured’s beneficiary and the insurer
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194	349		issuing any policy upon such application, be regarded as
195	350		representing the insured or the in sured’s beneficiary and not the
196	351		insurer. Any company which directly or through its agent s delivers
197	352		in this state to any insurance broker , a policy of insurance
198	353		pursuant to the application or request of such broker, acting for an
199	354		insured other than himself or herself, shall be deemed to have
200	355		authorized such broker to receive on its behalf, pay ment of any
201	356		premium which is due on such policy of insurance at the time of its
202	357		issuance or delivery.
203		-
204	358		C. Every licensed insurance producer shall be entitled to
205	359		commissions on all premiums collected for group insurance policies
206	360		negotiated by the insurance producer on behalf of an insurer and an
207	361		insurer shall be required to pay such commission s to the insurance
208	362		producer, except entitlement to commissions shall automatica lly
209	363		terminate without notice, effective on the date of the occurrence of
210	364		any of the following events:
211		-
212	365		1. The insurance producer’s license to engage in accident and
213	366		health insurance business is terminated or revoked by the State of
214	367		Oklahoma this state or any other public authority for cause. As
215	368		used in this paragraph, “cause” shall be defined as perpetration by
216	369		the insurance producer of fraud or embe zzlement;
217		-
218	370		2. Material breach of the insurance producer’s contract with
219	371		the account or insurer, excluding production re quirements;
220	372
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222		-	ENR. S. B. NO. 1252 Page 6
223	399		3. Termination of the insurance producer ’s “Agent of Record”
224	400		relationship with the employer or account; or
225		-
226	401		4. Death of the insurance producer, unless th e contract between
227	402		the insurer states otherwise or the right to the commission has
228	403		vested.
229		-
230	404		Recovery of such commissions shall be through civil action. In any
231	405		action brought pursuant to this subsection, the court may award
232	406		reasonable attorneys attorney fees to the prevailing party.
233		-
234	407		SECTION 3. AMENDATORY 36 O.S. 2021, Section 1435.6, is
235	408		amended to read as follows:
236		-
237	409		Section 1435.6. A. A resident individual applying for an
238	410		insurance producer license shall pass a w ritten examination u nless
239	411		exempt pursuant to Section 1435.10 of this title. The examination
240	412		shall test the knowledge of the individual concernin g the lines of
241	413		authority for which applicat ion is made, the duties and
242	414		responsibilities of an insurance produce r and the insurance laws and
243	415		regulations of this state. Examinations required by this section
244	416		shall be developed and conducted under rules and r egulations
245	417		prescribed by the Insurance Comm issioner.
246		-
247	418		B. The Commissioner may make arrangements, including
248	419		contracting with an outs ide testing service, for administering
249	420		examinations and collecting the nonrefundable fee set forth in
250	421		Section 1435.23 of this title.
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252	449		C. Each individual applying for an examination shall remit a
253	450		nonrefundable fee as prescribed by the In surance Commissioner as set
254	451		forth in Section 1435.23 of this title.
255		-
256	452		D. Prior to completion and filing of the application, the
257	453		Insurance Commissioner shall subject each applicant for licen se as
258	454		an insurance producer, as defined pursuant to paragraph 7 of Section
259	455		1435.2 of this title, insurance consultant, limited insurance
260	456		representative, or customer service representative to an examination
261	457		approved by the Commissioner as to competence to a ct as a licensee,
262	458		which each applicant shall personally take and pas s to the
263	459		satisfaction of the Commissioner except as provided in Section
264	460		1435.10 of this title. The Commissioner may accept examinations
265		-
266		-	ENR. S. B. NO. 1252 Page 7
267	461		administered by a testing service as satisfying the examination
268	462		requirements of persons seeking license as agents, soli citors,
269	463		counselors, or adjusters under the Oklahoma Insurance Code. The
270	464		Commissioner may negotiate agreements with such testing services to
271	465		include performance of examination development, test scheduling,
272	466		examination site arrangements, test administration, grading,
273	467		reporting, and analysis. The Commissioner may require such testing
274	468		services to correspond directly with the applicants with regard to
275	469		the administration of such examinations an d that such testing
276	470		services collect fees for administering such exa minations directly
277	471		from the applicants. The Commissioner may stipulate that any
278	472		agreements with such testing services provide for the administration
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279	500		of examinations in specific locales an d at specified frequencies.
280	501		The Commissioner shall retain the autho rity to establish th e scope
281	502		and type of all examinations.
282		-
283	503		E. If the applicant is a legal entity, the examination shall be
284	504		taken by each individual who is to act for the entity as a licens ee.
285		-
286	505		F. Each examination for a license shall be approved for use by
287	506		the Commissioner and shall reasonably test the knowledge of the
288	507		applicant as to the lines of insurance, policies, and transactions
289	508		to be handled pursuant to the license applied for, the du ties and
290	509		responsibilities of the licensee, and the pertinent insuran ce laws
291	510		of this state.
292		-
293	511		G. Examination for licensing shall be at such reasonable times
294	512		and places as are designated by the Commissioner.
295		-
296	513		H. The Commissioner or testing service shall give, conduct, and
297	514		grade all examinations in a fair and impartial manner and without
298	515		discrimination among individuals examined.
299		-
300	516		I. The applicant shall pass the examination with a grade
301	517		determined by the Commissioner to indicate satisfactory knowledge
302	518		and understanding of the line or lines of insurance for which the
303	519		applicant seeks qualification. Within ten (10) days after the
304	520		examination, the Commissioner shall inform the applicant and the
305	521		appointing insurer, when applicable, as to whether or not the
306	522		applicant has passed. An application for licensure shall be made
307	523		within two (2) years after pass ing the examination.
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309	550
310		-	ENR. S. B. NO. 1252 Page 8
311	551		J. An applicant who has failed to pass the examination for the
312	552		license applied for may take the examination subsequent times.
313	553		Examination fees for subsequent examinations shall not be waived.
314		-
315	554		K. An applicant for a license as a resid ent surplus lines
316	555		broker shall have passed the property and casualty insurance
317	556		examination on the line or lines of insurance to be written to
318	557		qualify for a surplus line s broker license.
319		-
320	558		SECTION 4. AMENDATORY 36 O.S. 2021, Section 1435.22, is
321	559		amended to read as follows:
322		-
323	560		Section 1435.22. A. Application for a customer service
324	561		representative license or license renewal shall be accompanied by a
325	562		written appointment, which shall remain in effect until expressly
326	563		terminated in writing, si gned by the insurance agent or broker who
327	564		will supervise the customer service representative, on forms
328	565		prescribed by the Insurance Commissioner.
329		-
330	566		B. 1. Prior to issuance of a license as an insurance
331	567		consultant or a surplus lines insuranc e broker, the applicant shall
332	568		file with the Commissioner and thereafter, for as long as the
333	569		license remains in effect, shall keep in force a bond in an amount
334	570		of not less than Five Thous and Dollars ($5,000.00) and not more than
335	571		Forty Thousand Dollars ($40, 000.00) with an authorized corporate
336	572		surety approved by the Commissioner. The exact amount of the bond
337	573		shall be determined pursuant to the rules of the Commissioner and
338	574		shall be based upon the actual or reasonably estimated premium for
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339	602		policies issued in connection with the services of the licensee.
340	603		The surety shall notify the Commissioner of any changes in the bond
341	604		of any licensee. The aggregate liability of the surety for any and
342	605		all claims on a bond required by the provisions of this subsection
343	606		shall in no event exceed the amount of the bond. No such bond shall
344	607		be terminated unless at least thirty (30) days ’ prior written notice
345	608		of the termination is given by the surety to the licen see and the
346	609		Commissioner. Upon termination of the license for which the bond
347	610		was in effect, the licensee shall notify the surety within ten (10)
348	611		working days.
349		-
350	612		2. The Commissioner may waive bonding requirements for
351	613		nonresident surplus lines insurance brok ers.
352		-
353		-
354		-	ENR. S. B. NO. 1252 Page 9
355	614		3. All surety protection required by the provisions of this
356	615		section is to inure to the benefit of any party aggrieved by the
357	616		acts of a consultant or broker arising pursuant to conduct as a
358	617		licensed insurance consultant or surplus lines insurance brok er.
359		-
360	618		SECTION 5. AMENDATORY 36 O.S. 2021, Section 1435.23, is
361	619		amended to read as follows:
362		-
363	620		Section 1435.23. A. All applications shall be accompanied by
364	621		the applicable fees. An appointment may be deemed by the
365	622		Commissioner to have terminated upon failure by the insurer to pay
366	623		the prescribed renewal f ee. The Commissioner may also by order
367	624		impose a civil penalty equal to double the amount of the unpaid
368	625		renewal fee.
369	626
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370	653		The Insurance Commissioner shall collect in advance the
371	654		following fees and licenses:
372		-
373	655		1. For filing appointment of Insurance Commissioner
374	656		as agent for service of process................... $ 20.00
375		-
376	657		2. Miscellaneous:
377		-
378	658		a. Insurance producer’s study manual:
379		-
380	659		(1) Life, Accident & Health .......... not to exceed
381		-
382	660		$ 40.00
383		-
384	661		(2) Property and Casualty ............ not to exceed
385		-
386	662		$ 40.00
387		-
388	663		b. For filing organizational documents of
389	664		an entity applying for a license as an
390	665		insurance producer.......................... $ 20.00
391		-
392	666		3. Examination for license:
393		-
394	667		For each examination covering laws
395	668		and one or more lines of insurance .... not to exceed
396		-
397		-
398		-	ENR. S. B. NO. 1252 Page 10
399	669		$100.00
400		-
401	670		4. Licenses:
402		-
403	671		a. Insurance producer’s biennial license....... $ 60.00
404		-
405	672		b. Nonresident insurance producer’s
406	673		biennial license............................ $100.00
407		-
408	674		c. Insurance producer’s biennial license
409	675		for sale or solicitation of variable
410	676		insurance products.......................... $ 60.00
411	677
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412	704		d. Limited lines producer biennial licen se..... $ 40.00
413		-
414	705		e. Nonresident limited lines producer
415	706		biennial license............................ $100.00
416		-
417	707		f. (1) Car rental limited lines biennial
418	708		license, one or two locations,
419	709		resident or nonresident ................ $ 40.00
420		-
421	710		(2) Car rental limited lines biennial
422	711		license, three or more locations,
423	712		resident or nonresident................ $500.00
424		-
425	713		g. Temporary license as agent.................. $ 20.00
426		-
427	714		h. Managing general agent’s biennial
428	715		license................................ ..... $ 60.00
429		-
430	716		i. Surplus lines broker ’s biennial license..... $100.00
431		-
432	717		j. Insurance vending machine, each machine,
433	718		biennial fee................................ $100.00
434		-
435	719		k. Insurance consultant ’s biennial license,
436	720		resident or nonresident..................... $100.00
437		-
438	721		l. Customer service representative biennial
439	722		license................................ ..... $ 40.00
440		-
441		-
442		-	ENR. S. B. NO. 1252 Page 11
443	723		5. Annual fee for each appointed insurance
444	724		producer, managing general agent, or limited
445	725		lines producer by insurer, each license of
446	726		each insurance producer or representative......... $30.00
447	727
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448	754		6. Renewal fee for all licenses shall be the same as the
449	755		current initial license fee.
450		-
451	756		7. The fee for a duplicate license shall be one -half (1/2) the
452	757		fee of an original license.
453		-
454	758		8. The renewal of a license shall requ ire a fee of double the
455	759		current original license fee if the applicatio n for renewal is late,
456	760		or incomplete on the renewal deadline.
457		-
458	761		9. The administrative fee for submission of a change of legal
459	762		name or address more than thirty (30) days after the change o ccurred
460	763		shall be Fifty Dollars ($50.00).
461		-
462	764		B. If for any reason an insu rance producer license or
463	765		appointment is not issued or renewed by the Commissioner, all fees
464	766		accompanying the appointment or application for the license shall be
465	767		deemed earned and shall not be refundable except as provided in
466	768		Section 352 of this title.
467		-
468	769		C. The Insurance Commissioner, by order, may waive licensing
469	770		fees in extraordinary circumstances for a class of producers where
470	771		the Commissioner deems that the public interest will be best served.
471		-
472	772		SECTION 6. AMENDATORY 36 O.S. 2021, Section 1435.26, is
473	773		amended to read as follows:
474		-
475	774		Section 1435.26. A. It shall be unlawful for any person whose
476	775		license to act as an insurance producer, limited lines producer,
477	776		managing general agent, insurance consultant, or surplus lines
478	777		insurance broker, or customer service representative has been
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479	805		suspended, revoked, surrendered, or refused to do or perform any of
480	806		the acts of an insurance producer, limited lines producer, managing
481	807		general agent, insurance consultant, or surplus lines insurance
482	808		broker, or customer service representative. Any person convicted of
483	809		violating the provisions of this section shall be guilty of a felony
484	810		and shall be punished by the imposition of a fine of not more than
485		-
486		-	ENR. S. B. NO. 1252 Page 12
487	811		Five Thousand Dollars ($5,000.00) or shall be committed to t he
488	812		custody of the Department of Corrections for not less than one (1)
489	813		year nor more than five (5) years, or be punished by both said fine
490	814		and commitment to custody.
491		-
492	815		B. It shall be unlaw ful for any insurance producer, limited
493	816		lines producer, managing gener al agent, insurance consultant, or
494	817		surplus lines insurance broker , or customer service representative
495	818		to assist, aid, or conspire with a person whose license as an
496	819		insurance producer, li mited lines producer, managing general agent,
497	820		insurance consultant, or surplus lines insurance broker, or customer
498	821		service representative has been suspended, revoked, surrendered, or
499	822		refused to engage in any acts as an insurance producer, limited
500	823		lines producer, managing general agent, insurance consultant, or
501	824		surplus lines insurance broker, or customer service representative.
502	825		Any person convicted of violating the provisions of this section
503	826		shall be guilty of a felony and shall be punished by the impositio n
504	827		of a fine of not more than Five Thousand Dollars ($5,000.00) or
505	828		shall be committed to the custody of the Department of Corrections
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506	856		for not less than one (1) year nor more than five (5) years, or be
507	857		punished by both said fine and commitment to custody.
508		-
509	858		C. Except for those persons exempt from licensure, it shall be
510	859		unlawful for any person to do or perform any of the acts of an
511	860		insurance producer, limited lines producer, managing general agent,
512	861		or surplus lines insurance broker , insurance consultant, or cus tomer
513	862		service representative without being duly licensed. Any person
514	863		convicted of violating the provisions of this section shall be
515	864		guilty of a misdemeanor and shall be punished by the imposition of a
516	865		fine of not more than Five Hundred Dollars ($500.00) o r imprisonment
517	866		in the county jail for not less than six (6) months no r more than
518	867		one (1) year, or be punished by both said fine and imprisonment.
519		-
520	868		SECTION 7. AMENDATORY 36 O.S. 2021, Section 1435.29, is
521	869		amended to read as follows:
522		-
523	870		Section 1435.29. A. 1. Each insurance producer, with the
524	871		exception of title producers and aircraft title producers or any
525	872		other producer exempt by rule, shall, biennially, complete not less
526	873		than twenty-one (21) clock hours of continuing insurance educat ion.
527	874		Such education may include a written or oral examination.
528		-
529		-
530		-	ENR. S. B. NO. 1252 Page 13
531	875		2. Each customer service representative shall, biennially,
532	876		complete not less than ten (10) clock hours of continuing insurance
533	877		education.
534		-
535	878		3. Licensees, with the exception of title producers and
536	879		aircraft title producers or any other producer exempt by rule, sh all
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537	907		complete, in addition to the foregoing, three (3) clock hours of
538	908		ethics course work in this same period.
539		-
540	909		4. 3. Each title producer and aircraft title producer shall,
541	910		biennially, complete not less than sixteen (16) clock hours of
542	911		continuing insurance education, two (2) h ours of which shall be
543	912		ethics course work, which shall cover the line for which the
544	913		producer is licensed. Such education may include a written or oral
545	914		examination.
546		-
547	915		B. 1. The Insurance Commissioner shall approve courses and
548	916		providers of continuing educat ion. The Insurance Department may use
549	917		one or more of the following to review and provide a nonbinding
550	918		recommendation to the Insurance Commissioner on approval or
551	919		disapproval of courses and providers of continuing education:
552		-
553	920		a. employees of the Insurance C ommissioner,
554		-
555	921		b. a continuing education advisory committee, or
556		-
557	922		c. an independent service whose normal business
558	923		activities include the re view and approval of
559	924		continuing education courses and providers. The
560	925		Commissioner may negotiate agre ements with such
561	926		independent service to review documents and other
562	927		materials submitted for approval of courses and
563	928		providers and provide the Commissioner w ith its
564	929		nonbinding recommendation . The Commissioner may
565	930		require such independent service to collect the fee
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566	958		charged by the independent service for reviewing
567	959		materials provided for review directly from the course
568	960		providers.
569		-
570	961		The Insurance Commissioner has s ole authority to approve courses
571	962		and providers of continuing education. If the Insurance
572	963		Commissioner uses one of the en tities listed above to provide a
573		-
574		-	ENR. S. B. NO. 1252 Page 14
575	964		nonbinding recommendation, the Commissioner shall adopt or decline
576	965		to adopt the recommendation within thirty (30) days of receipt of
577	966		the recommendation. In the event the Insurance Commissioner takes
578	967		no action within said t hirty-day period, the recommendation made to
579	968		the Commissioner will be deemed to have been adopted by the
580	969		Commissioner.
581		-
582	970		The Insurance Commissioner may certify providers and courses
583	971		offered for license examination study. The Insurance De partment
584	972		shall use employees of the Insurance Commissioner to review and
585	973		certify license examination study program providers and courses.
586		-
587	974		2. Each insurance company shall be allowed to pro vide
588	975		continuing education to insurance producers and customer service
589	976		representatives as required by this section; provided that such
590	977		continuing education meets the general standards for education
591	978		otherwise established by t he Insurance Commissioner.
592		-
593	979		3. An insurance producer who, during the time period prior to
594	980		renewal, participates in a prof essional designation program,
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595	1008		approved by the Insurance Commissioner, shall be deemed to have met
596	1009		the biennial requirement for continui ng education.
597		-
598	1010		The curriculum for the program shall total a minimum of twenty-
599	1011		four (24) hours within a twenty-four-month period. Each approved
600	1012		professional designation program included in this section shall be
601	1013		reviewed for quality and compliance every thre e (3) years in
602	1014		accordance with standardized criteria promulgated by rule.
603	1015		Continuation of approved s tatus is contingent upon the findings of
604	1016		the review. The list of professional designation programs approved
605	1017		under this paragraph shall be made available t o producers and
606	1018		providers annually.
607		-
608	1019		4. The Insurance Department may promulgate rules providing that
609	1020		courses or programs offered by professional associations shall
610	1021		qualify for presumptive continuing education credit approval. The
611	1022		rules shall include stand ardized criteria for reviewing th e
612	1023		professional associations’ mission, membership, and other relevant
613	1024		information, and shall provide a procedure for the Department to
614	1025		disallow all or part of a presumptively approved course.
615	1026		Professional association course s approved in accordance with thi s
616		-
617		-	ENR. S. B. NO. 1252 Page 15
618	1027		paragraph shall be reviewed every three (3) years to determine
619	1028		whether they continue t o qualify for continuing education credit.
620		-
621	1029		5. Subject to approval by the Commissioner, the active
622	1030		membership of the licensed producer or broker in local, regional,
623	1031		state, or national professional insurance organizations or
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624	1059		associations may be approved for up to one (1) annual hour of
625	1060		instruction. The hour shall be credited upon timely filing with the
626	1061		Commissioner, or designee of the Com missioner, and appropriate
627	1062		written evidence acceptable to the Commissioner of such active
628	1063		membership in the organization or association.
629		-
630	1064		6. The active service of a licensed producer as a member of a
631	1065		continuing education advisory committee, as described in paragraph 1
632	1066		of this subsection, shall be deemed to qualify for continuing
633	1067		education credit on an hou r-for-hour basis.
634		-
635	1068		C. 1. Annual fees and course submission fees shall be set
636	1069		forth as a rule by the Commissioner. The fees are payable to the
637	1070		Insurance Commissioner. Provided, public -funded educational
638	1071		institutions, federal agencies, nonprofit organizations, not-for-
639	1072		profit organizations, and Oklahoma state agencies shall be exempt
640	1073		from this subsection.
641		-
642	1074		2. The Commissioner may assess a civil penalty, afte r notice
643	1075		and opportunity for hear ing, against a continuing education provider
644	1076		who fails to comply with the requirements o f the Oklahoma Producer
645	1077		Licensing Act, of not less than One Hundred Dollars ($100.00) nor
646	1078		more than Five Hundred Dollars ($500.00), for each occurrence. The
647	1079		civil penalty may be enforced in the same manner in which civil
648	1080		judgments may be enforced.
649		-
650	1081		D. Failure of an insurance producer or customer service
651	1082		representative to comply with the requirements of the Oklahoma
	1083	+
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652	1110		Producer Licensing Act may, after notice and opportunit y for
653	1111		hearing, result in censure, suspension, nonrenewal of license or a
654	1112		civil penalty of up to Five Hundred Dollars ($500.00) or by both
655	1113		such penalty and civil penalty. Said civil penalty may be enforced
656	1114		in the same manner in which civil judgments may be enforced.
657		-
658		-
659		-	ENR. S. B. NO. 1252 Page 16
660	1115		E. Limited lines producers and nonresident agents who ha ve
661	1116		successfully completed an equivalent or greater requirement shall be
662	1117		exempt from the provisions of this section.
663		-
664	1118		F. Members of the Legislature shall be exempt from this
665	1119		section.
666		-
667	1120		G. The Commissioner shall adopt and promulgate such rules as
668	1121		are necessary for effective admi nistration of this section.
669		-
670	1122		SECTION 8. REPEALER 36 O.S. 2021, Section 1435.24, is
671	1123		hereby repealed.
672		-
673	1124		SECTION 9. REPEALER 36 O.S. 2021, Section 1435.30, is
674	1125		hereby repealed.
675		-
676	1126		SECTION 10. REPEALER 36 O.S. 2021, Section 1435.31, is
677	1127		hereby repealed.
678		-
679	1128		SECTION 11. This act shall become effective November 1, 2022.
680	1129
681		-
682		-	ENR. S. B. NO. 1252 Page 17
683		-	Passed the Senate the 7th day of March, 2022.
684		-
685		-
686		-
687		-	Presiding Officer of the Senate
688		-
689		-
690		-	Passed the House of Representatives the 28th day of April, 2022.
691		-
692		-
693		-
694		-	Presiding Officer of the House
695		-	of Representatives
696		-
697		-	OFFICE OF THE GOVERNOR
698		-	Received by the Office of the Governor this _______ _____________
699		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
700		-	By: _______________________________ __
701		-	Approved by the Governor of the State of Oklahoma this _____ ____
702		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
703		-
704		-	_________________________________
705		-	Governor of the State of Oklahoma
706		-
707		-
708		-	OFFICE OF THE SECRETARY OF STATE
709		-	Received by the Office of the Secretary of State this _______ ___
710		-	day of __________________, 20 _______, at _______ o'clock _______ M.
711		-	By: _______________________________ __
	1130	+	COMMITTEE REPORT BY: COMMITTEE O N INSURANCE, dated 04/14/2022 - DO
	1131	+	PASS.