Substitute House Bill No. 6958

Public Act No. 99-45

An Act Concerning the Licensing of Insurance Producers, Adjusters, Consultants and Surplus Line Brokers.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (a) of section 38a-769 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) Any person, partnership, association or corporation, resident, or with its principal place of business in this state, or a nonresident of this state who is not licensed in any other state, desiring to act within this state as an insurance producer, public adjuster, casualty adjuster, motor vehicle physical damage appraiser, certified insurance consultant, surplus lines broker or desiring to engage in any insurance-related occupation for which a license is deemed necessary by the commissioner, shall make a written application to the commissioner for a resident license. Any other person, partnership, association or corporation desiring to so act or to engage in any insurance-related occupation for which a license is deemed necessary by the commissioner, shall make a written application to the commissioner for a nonresident license. No application for a nonresident license shall be granted unless the applicant holds an equivalent license from [the state in which the applicant resides] any other state. Any application for a resident or nonresident license shall be made for each name or designation under which such business shall be conducted, in such form as the commissioner prescribes, stating the line or lines of insurance for which the applicant desires such license and any other business which he desires also to transact. All initial applications shall be accompanied by a nonrefundable filing fee specified in section 38a-11. The commissioner shall cause to be made such inquiry and examination as to the qualifications of each such applicant as he deems necessary.

Sec. 2. Subsections (d) and (e) of section 38a-782 of the general statutes are repealed and the following is substituted in lieu thereof:

(d) The commissioner may waive the requirement for examination in the case of (1) any applicant for an insurance producer's license who is a nonresident of this state and who holds an equivalent license from [the state in which the applicant resides] any other state. The commissioner of this state shall make such determination; (2) any applicant for a travel accident or baggage agent's license; (3) any applicant who at any time within two years next preceding the date of application has been licensed in this state under a license of the same type as the license applied for; (4) an applicant for a temporary producer's license provided for in section 38a-783; (5) any applicant for a life producer's license who has been awarded the professional designation of Chartered Life Underwriter; (6) any applicant for a property or casualty producer's license who has been awarded the professional designation of Chartered Property and Casualty Underwriter; (7) an applicant for a producer's license to sell home warranty contracts or home warranty service agreements as defined in subsection (a) of section 38a-320; (8) any applicant for a producer's license to sell automobile mechanical breakdown insurance; (9) any applicant for a producer's license to sell (A) policies covering property sold under a conditional bill of sale or instalment sales contract where the premium for such coverage is included as an item in such sales or financing contracts, or (B) policies insuring the life or health of a purchaser or borrower if the premium for such coverage is included in the financing or mortgaging agreement; (10) any applicant for a license to sell title insurance; or (11) any miscellaneous line of insurance designated by the commissioner pursuant to regulations adopted in accordance with chapter 54.

(e) Each applicant for an insurance producer's license shall, before being admitted to such examination, prove to the satisfaction of the commissioner that he meets one of the following alternative prerequisites: (1) That he has successfully completed a course approved by the Insurance Commissioner requiring not less than forty hours for each line of insurance for which he desires to be licensed; [or with the exception of twenty hours for the line of variable products;] (2) that he has equivalent experience or training as determined by the Insurance Commissioner. No additional course or examination shall be required for the line of variable products.

Sec. 3. Subsection (a) of section 38a-784 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) Any license issued for an insurance producer by the commissioner shall be in force only until the first day of February in each even-numbered year, but may be renewed by the commissioner, in his discretion and without formality other than proper application and satisfactory proof that such applicant at that time possesses the required qualifications for license and that the issuance of such license will not be contrary to the licensing provisions of this title, provided any producer's license issued by the commissioner, except a temporary producer's license provided for in section 38a-783, shall continue in force until cancelled, suspended or revoked and provided the insurance company represented by any licensee or licensees shall furnish the commissioner, prior to May first, biennially, the names of its agents whose [licenses] appointments it wishes to continue. The fees for producer licenses and agent appointments shall be assessed biennially as provided in section 38a-11.

Sec. 4. Subsection (a) of section 38a-788 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) The commissioner may waive the requirement of examination set out in section 38a-769, in the case of (1) any applicant for a public adjuster's license who is a nonresident of this state and who is licensed as a public adjuster in [the state in which he resides] any other state and (2) any applicant who at any time within two years next preceding the date of application has been licensed in this state under a license of the same type as the license applied for.

Sec. 5. Subsection (a) of section 38a-790 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) No person shall act as an appraiser for motor vehicle physical damage claims on behalf of any insurance company or firm or corporation engaged in the adjustment or appraisal of motor vehicle claims unless such person has first secured a license from the Insurance Commissioner, and has paid the license fee specified in section 38a-11, for each two-year period or fraction thereof. The license shall be applied for as provided in section 38a-769. The commissioner may waive the requirement for examination in the case of any applicant for a motor vehicle physical damage appraiser's license who is a nonresident of this state and who holds an equivalent license from [the state in which the applicant resides] any other state. Any such license issued by the commissioner shall be in force until the thirtieth day of June in each odd-numbered year unless sooner revoked or suspended. The license may, in the discretion of the commissioner, be renewed biennially upon payment of the fee specified in section 38a-11. The commissioner may adopt reasonable regulations concerning standards for qualification, suspension or revocation of such licenses and the methods by which licensees shall conduct their business.

Sec. 6. Subsection (a) of section 38a-792 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) No person may act as an adjuster of casualty claims for any insurance company or firm or corporation engaged in the adjustment of casualty claims unless such person has first secured a license from the commissioner, and has paid the license fee specified in section 38a-11, for each two-year period or fraction thereof. Application for such license shall be made as provided in section 38a-769. The commissioner may waive the requirement for examination in the case of any applicant for a casualty claims adjuster's license who is a nonresident of this state and who holds an equivalent license from [the state in which the applicant resides] any other state. Any such license issued by the commissioner shall be in force until the thirtieth day of June in each odd-numbered year unless sooner revoked or suspended. The license may, in the discretion of the commissioner, be renewed biennially upon payment of the fee specified in section 38a-11. The commissioner may waive the examination required under section 38a-769, in the case of an applicant who at any time within two years next preceding the date of application has been licensed in this state under a license of the same type as the license applied for.

Approved May 27, 1999

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