PRINTER'SS1241B1716A05583 SFR:CDM 09/11/24 #90 A05583 AMENDMENTS TO SENATE BILL NO.

16881241 THESponsor: GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1241REPRESENTATIVE 2024WARREN INTRODUCEDPrinter's BYNo. GEBHARD AND ROTHMAN, JUNE 5, 2024 REFERRED TO BANKING AND INSURANCE, JUNE 5, 2024 AN ACT Amending the act of May 17, 1921 (P.L.789, No.285), entitled "An act, relating to insurance;

establishing1716 anAmend insuranceBill, department;page 1, line 14, by striking out "and for licensing." and inserting , for licensing and for license renewals.

andAmend amending,Bill, revising,page and2, consolidatinglines the6 lawthrough relating8, toby thestriking licensing,out qualification,all regulation, examination, suspension, and dissolution of insurancesaid insurancelines exchanges, and certaininserting societiesSection and2. orders, the examination and regulation of fire insurance rating bureaus, and the licensing and regulation of insurance agents and brokers;

theSections service602-A(a)(2), of604-A(a), legal(b), process(c) uponand foreign(d) insuranceintroductory companies,paragraph, associations606-A(a)(3) orand exchanges;608-A(b) of the act are amended to read:

providingAmend penalties,Bill, andpage repealing4, existingby laws,"inserting inbetween insurancelines producers,1 further providing for definitions, for powers and duties2 ofSection department,608-A. for license prerequisites and for licensing.

TheLicense Generalrenewals. Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section* 1.* * (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.

TheA definitionlicensee ofmay "candidate"carry inforward sectionexcess 601-Acontinuing ofeducation thecredit acthours ofup Mayto 17,a 1921maximum (P.L.789,of No.285),24 knowncredit ashours Thefrom Insuranceone Departmentlicensing Actperiod ofto 1921,the isnext amendedlicensing toperiod. read:

Section(2) 601-A.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.

Definitions.The following apply:

The(i) followingFor wordsan andindividual phraseslicensed whenprior usedto inthe effective date of this articlesubparagraph, the individual shall havesatisfy the meaningsethics givenrequirement tounder themthis inparagraph within 12 months of the effective date of this sectionsubparagraph unlessor by the contextend clearlyof indicatesthe otherwise:individual's license period existing on the effective date of this subparagraph, whichever period of time is longer.

*(ii) *For *an "Candidate."individual Anlicensed individualon whoor [hasafter satisfactorilythe completedeffective ordate isof exemptthis fromsubparagraph, the preexaminationindividual educationalshall requirementssatisfy of]the appliesethics torequirement takeunder anthis insuranceparagraph produceron licensingor examinationbefore underthe sectionend 604-A.of the individual's first license period.

*(3) *For *each Sectionlicensee 2.with a property and casualty line of authority, at least 2 of the 24 credit hours of approved 2024/90SFR/SB1241A05583 - 1 - continuing education required under paragraph (1) must be on the topic of flood insurance.

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

Section(i) 602-A.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.

Powers(ii) andFor dutiesan individual licensed on or after the effective date of department.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.

(a)* Responsibilities.--The* commissioner* shall2024/90SFR/SB1241A05583 do- all2 of- the following:

* * * (2) Approve and administer or contract for the overall administration of the [preexamination program, preexamination courses of study,] insurance producer licensing examinations and continuing education programs.

[A preexamination education program approved by the department shall include no less than three credit hours on ethics.] * * * Section 604-A.

License prerequisites.

(a) General rule.--Prior to applying to the department for an insurance producer license, an individual shall [do the following:

(1) satisfactorily complete the preexamination education requirements of subsection (b);

and (2)] pass an insurance producer licensing examination 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, 20240SB1241PN1688 - 2 - an individual who desires to be licensed as an insurance producer shall complete a minimum of 24 credit hours of approved preexamination courses.

Upon satisfactory completion of an approved preexamination course of study, the individual shall be issued proof of completion by the provider.] (c) Insurance producer licensing examination.--[Except as provided in subsection (d), upon satisfactory completion of an approved preexamination course of study a candidate may apply to take an insurance producer licensing examination.] A candidate shall remit a completed application for examination indicating the lines of authority for which the candidate desires to be licensed[, a copy of the candidate's approved preexamination study certificate] and the nonrefundable examination fee established by the department prior to taking an insurance producer licensing examination.

(d) Exceptions.--The examination [or preexamination education] requirements of this act shall not be required if the person is:

* * * Section 606-A.

Licensing.

(a) Applicants.--The department shall review each application and may conduct an investigation of each applicant who applies for a license in accordance with this act.

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 been met:

* * * [(3) The applicant has satisfied the preexamination education requirements of this act.] 20240SB1241PN1688 - 3 - * * * Section 3.

This act shall take effect in 60 days.

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