SB 1241 — An Act amending the act of May 17, 1921 (P.L.789, No.285), known as The Insurance Department Act of 1921, in insurance producers, further providing for definitions, for powers and duties of department, for license prerequisites, for licensing and for license renewals.

HOUSE AMENDED PRIOR PRINTER'S NO.NOS.

16881688, 1716 PRINTER'S NO.

17161914 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1241 2024 INTRODUCED BY GEBHARDGEBHARD, ROTHMAN AND ROTHMAN,DUSH, JUNE 5, 2024 SENATORAS DiSANTO,REPORTED BANKINGFROM ANDCOMMITTEE ON INSURANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNESEPTEMBER 11,30, 2024 AN ACT Amending the act of May 17, 1921 (P.L.789, No.285), entitled "An act, relating to insurance;

and amending, revising, and consolidating the law relatingexamination, tosuspension, theand licensing,dissolution qualification,of regulation,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;

providing penalties, and repealing existing laws," in insurance producers, further providing for definitions, for powers and duties of department, for license prerequisites and for licensing.licensing., FOR <-- LICENSING AND FOR LICENSE RENEWALS.

Sections 602-A(a)(2), 604-A(a), (b), (c) and (d) <-- introductory paragraph and 606-A(a)(3) of the act are amended to read:

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:

and (2)] pass an insurance producer licensing examination 20240SB1241PN1914 - 2 - 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, 20240SB1241PN1716 - 2 - an individual who desires to be licensed as an insurance producer shall complete a minimum of 24 credit hours of approved preexamination courses.

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 20240SB1241PN1914 - 3 - been met:

* * * [(3) The applicant has satisfied the preexamination education requirements of this act.] 20240SB1241PN1716 - 3 - * * * SectionSECTION 3.608-A.

ThisLICENSE actRENEWALS. shall take effect in 60 180 days.

<-- 20240SB1241PN1716* -* 4* -(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 3 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 20240SB1241PN1914 - 4 - OF AUTHORITY, AT LEAST 2 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.

* * * Section 3.

This act shall take effect in 180 days.

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