Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                        CHAPTER 231-S.F.No. 200 
           An act relating to insurance; regulating continuing 
          insurance education; amending Minnesota Statutes 1988, 
          section 60A.1701, subdivisions 1, 5, 7, 8, and 9; 
          repealing Minnesota Rules, part 2725.0240.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 60A.1701, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITION.] For the purposes of this 
section, "course" means a course, program of instruction, or 
seminar of continuing insurance education.  A "professional 
designation examination" means a written, proctored, and graded 
examination the passage of which leads to a bona fide insurance 
or financial planning professional designation used by agents.  
    Sec. 2.  Minnesota Statutes 1988, section 60A.1701, 
subdivision 5, is amended to read: 
    Subd. 5.  [POWERS OF THE ADVISORY TASK FORCE.] (a) 
Applications for approval of individuals responsible for 
monitoring course offerings must be submitted to the 
commissioner on forms prescribed by the commissioner and must be 
accompanied by a fee of not more than $50 payable to the state 
of Minnesota for deposit in the general fund.  A fee of $5 for 
each hour or fraction of one hour of course approval sought must 
be forwarded with the application for course approval.  If the 
advisory task force is created, it shall make recommendations to 
the commissioner regarding the accreditation of courses 
sponsored by institutions, both public and private, which 
satisfy the criteria established by this section, the number of 
credit hours to be assigned to the courses, and rules which may 
be promulgated by the commissioner.  The advisory task force 
shall seek out and encourage the presentation of courses.  
    (b) If the advisory task force is created, it shall make 
recommendations and provide subsequent evaluations to the 
commissioner regarding procedures for reporting compliance with 
the minimum education requirement.  
    (c) The advisory task force shall recommend the approval or 
disapproval of professional designation examinations that meet 
the criteria established by this section and the number of 
continuing education credit hours to be awarded for passage of 
the examination.  In order to be approved, a professional 
designation examination must:  
    (1) lead to a recognized insurance or financial planning 
professional designation used by agents; and 
    (2) conclude with a written examination that is proctored 
and graded.  
    Sec. 3.  Minnesota Statutes 1988, section 60A.1701, 
subdivision 7, is amended to read: 
    Subd. 7.  [CRITERIA FOR COURSE ACCREDITATION.] (a) The 
commissioner may accredit a course only to the extent it is 
designed to impart substantive and procedural knowledge of the 
insurance field.  The burden of demonstrating that the course 
satisfies this requirement is on the individual or organization 
seeking accreditation.  The commissioner shall approve any 
educational program approved by Minnesota Continuing Legal 
Education relating to the insurance field.  
    (b) The commissioner shall approve or disapprove 
professional designation examinations that are recommended for 
approval by the advisory task force.  In order for an agent to 
receive full continuing education credit for a professional 
designation examination, the agent must pass the examination.  
An agent may not receive credit for classroom instruction 
preparing for the professional designation examination and also 
receive continuing education credit for passing the professional 
designation examination. 
    (c) The commissioner may not accredit a course:  
    (1) that is designed to prepare students for a license 
examination; 
    (2) in mechanical office or business skills, including 
typing, speedreading, use of calculators, or other machines or 
equipment; 
    (3) in sales promotion, including meetings held in 
conjunction with the general business of the licensed agent; 
    (4) in motivation, the art of selling, psychology, or time 
management; 
    (5) unless the student attends classroom instruction 
conducted by an instructor approved by the department of 
commerce; or 
    (6) which can be completed by the student at home or 
outside the classroom without the supervision of an instructor 
approved by the department of commerce.  
    Sec. 4.  Minnesota Statutes 1988, section 60A.1701, 
subdivision 8, is amended to read: 
    Subd. 8.  [MINIMUM EDUCATION REQUIREMENT.] Each person 
subject to this section shall complete annually a minimum of 20 
15 credit hours of courses accredited by the commissioner.  Any 
person teaching or lecturing at an accredited course qualifies 
for 1-1/2 times the number of credit hours that would be granted 
to a person completing the accredited course.  No more than ten 
7-1/2 credit hours per year may be credited to a person for 
courses sponsored by, offered by, or affiliated with an 
insurance company or its agents.  Courses sponsored by, offered 
by, or affiliated with an insurance company or agent may 
restrict its students to agents of the company or agency. 
    Sec. 5.  Minnesota Statutes 1988, section 60A.1701, 
subdivision 9, is amended to read: 
    Subd. 9.  [WAIVER OF REQUIREMENTS.] (a) The commissioner 
may grant a waiver or an extension of time up to 90 days to 
complete the minimum education requirement to an individual upon 
a showing of good cause.  It is the licensed person's 
responsibility to request a waiver or extension on a form 
prescribed by the commissioner.  As of the day the licensed 
person properly files a request for a waiver or extension, the 
license remains in effect until the commissioner notifies the 
licensed person of the commissioner's decision.  The 
commissioner may approve a waiver or extension subject to any 
reasonable conditions.  The person's license remains in effect 
during the compliance period determined by the commissioner.  If 
the licensed person fails to comply with any reasonable 
conditions imposed by the commissioner, the commissioner shall 
terminate the license.  If the request for a waiver or extension 
is denied by the commissioner, the licensed person shall have 30 
days within which to satisfy the minimum education requirement 
involved in the request for a waiver or extension.  If the 
minimum education requirement is not satisfied within the 
compliance period, the commissioner shall terminate the person's 
license.  
    (b) Upon application on a form prescribed by the 
commissioner, the commissioner may grant a waiver of the minimum 
education requirement to a group or class of licensed persons 
upon a showing of good cause. licensee who is no longer actively 
engaged in the solicitation and sale of insurance.  A licensed 
person seeking a waiver from the requirements of this section 
may be required to submit information to the commissioner that 
substantiates the person's retirement or inactive status.  A 
licensed person receiving a waiver from the commissioner may 
maintain and renew a license but may not solicit or sell new 
insurance business while this waiver is in effect.  A licensee 
may, for a fee, continue to service an insurance policy for 
which the licensee is the agent of record, if the policy is in 
force at the time the waiver is granted.  An insurer may not 
terminate a service contract or refuse to pay compensation 
because the waiver does not allow the licensee to solicit or 
sell new insurance.  
    For the purposes of receiving renewal commissions and other 
benefits or compensation from insurers, an agent receiving a 
waiver under this paragraph is considered to be the holder of a 
valid insurance agent license in this state.  
    Sec. 6.  [REPEALER.] 
    Minnesota Rules, part 2725.0240, is repealed.  An agent 
exempted from continuing insurance education under this part 
before June 1, 1989, continues to be exempt from continuing 
insurance education requirements. 
     Sec. 7.  [EFFECTIVE DATE; APPLICATION.] 
    Sections 1 to 6 are effective for the reporting year 
beginning June 1, 1989.  The continuing insurance education 
advisory task force may begin recommending approval and 
disapproval of, and the commissioner of commerce may approve or 
disapprove, professional designation examinations beginning the 
day following final enactment of sections 1 to 6.  
    An insurance agent passing an insurance or financial 
planning professional designation examination on or after 
January 1, 1988, but before the effective date of sections 1 to 
6, shall receive full continuing education credit for the 
reporting year beginning June 1, 1989, if the professional 
designation examination has been approved by the commissioner of 
commerce. 
    Presented to the governor May 19, 1989 
    Signed by the governor May 22, 1989, 11:12 p.m.