NO. 87. AN ACT RELATING TO INSURANCE AGENTS AND BROKERS.
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 8 V.S.A. § 4798 is amended to read:
§ 4798. TERM OF LICENSE
(a) Except as provided by subsection (b) of this section, all licenses issued pursuant to this subchapter shall continue in force not longer than *[
twelve]* 24 months *[ but]*.
(b)(1) All licenses of insurance agents issued pursuant to this subchapter shall expire as of 12:01 a.m. o'clock on the first day of April of the odd-numbered year next following date of issuance; and
(2) All other license types issued pursuant to this subchapter shall expire as of 12:01 a.m. oclock on the first day of April of the even-numbered year following the date of issuance; unless
(3) the licensee prior thereto has filed with the commissioner, on forms prescribed and furnished by the commissioner, a request for renewal of such license for an ensuing *[
twelve month]* 24-month period. Such request must be accompanied by payment of the renewal fee as provided in subdivision (4) of section 4800 of this title.
Sec. 2. 8 V.S.A. § 4800(4) is amended to read:
(4) All applications shall be accompanied by a $30.00 fee plus the applicable fees as follows:
(A) Initial *[
twelve months]* 24-month licensing for resident and nonresident agents of foreign insurers *[ $30.00]* $60.00; and brokers *[ $50.00]* $100.00.
Annual]* Biennial renewal for agents of foreign insurers *[ $30.00]* $60.00; and brokers *[ $50.00]* $100.00.
(C) Initial *[
twelve months]* 24-month appointment and *[ annual]* biennial renewal appointment for limited insurance representative *[ $30.00]* $60.00.
(D) Initial *[
twelve months]* 24-month appointment and *[ annual]* biennial fee for resident and nonresident adjusters, and appraisers licenses *[ $30.00]* $60.00, and public adjusters *[ $100.00]* $200.00.
(E) The initial *[
twelve months]* 24-month appointment fee and *[ annual]* biennial renewal fee for surplus lines brokers *[ $200.00]* $400.00.
(F) The initial *[
twelve months]* 24-month appointment fee and *[ annual]* biennial renewal fee for consultants *[ $100.00]* $200.00.
(G) The initial *[
12 months]* 24-month appointment fee and *[ annual]* biennial renewal fee for reinsurance intermediaries *[ $100.00]* $200.00.
(H) The initial *[
12 months]* 24-month appointment fee and *[ annual]* biennial renewal fee for managing general agents *[ $150.00]* $300.00.
An appointment shall terminate upon failure to pay the prescribed fees.
Sec. 3. 8 V.S.A. § 4800a is added to read:
§ 4800a. CONTINUING EDUCATION
(a) An applicant for an agent or broker license renewal shall demonstrate satisfactory completion of twenty-four (24) hours of continuing education during the preceding two years.
(b) The commissioner shall adopt such rules as are needed to carry out the purposes of this section. Such rules shall include:
(1) a process for the formation and operation of an advisory council of insurance professionals and consumers to advise the commissioner on matters relating to continuing education;
(2) a process for the approval of courses;
(3) a process for the approval of course providers;
(4) standards for courses; and
(5) procedures for documenting satisfactory completion of courses.
(c) For good cause shown, the commissioner may extend for no longer than six months the period of time for completion of the educational requirements of this section.
(d) This section shall not apply to a nonresident agent or broker who resides in a state or district that has a continuing education requirement and who has satisfied such requirement, and submits adequate documentation of continuing education completion to the commissioner.
(e) The license of an applicant who has failed to satisfy the continuing education requirements of this section, and who has not been granted an extension of time as set forth in subsection (c) of this section, shall not be renewed.
(f) The commissioner shall suspend the license of any applicant who, after receiving an extension of time as set forth in subsection (c) of this section, has not satisfactorily completed the continuing education requirement.
(g) The commissioner may contract with an outside vendor to administer continuing education requirements, including approval of courses and course providers; collection and maintenance of agent and broker record keeping; and compliance monitoring. The costs of an outside vendor shall be borne by applicants for agent or broker license renewal and by course providers through fees imposed by the outside vendor. All fees charged by the outside vendor will be subject to the prior approval of the commissioner and may be payable to the outside vendor, notwithstanding 32 V.S.A. § 502(a).
(h) This act shall take effect on January 1, 2001, with respect to the biennial licensing of insurance agents and January 1, 2002, with respect to all other license types issued pursuant to this subchapter, and the continuing education requirements shall apply to applicants for license renewal, effective on and after October 1, 2002.
Sec. 4. 8 V.S.A. § 80(b) is amended to read:
(b) At the end of each fiscal year, that portion of the balance in the insurance regulatory and supervision fund which exceeds two hundred and fifty thousand dollars ($250,000.00) shall be transferred to the general fund. The secretary of administration may approve an additional portion of such balance to be carried forward to accommodate the two-year revenue cycle for fees established in sections 4798 and 4800 of this title.
Approved: April 27, 2000