September 13, 2012, Introduced by Rep. Lyons and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 1204 (MCL 500.1204), as amended by 2008 PA 576.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
1204. (1) A To be licensed
as an insurance producer, a
resident individual applying for an insurance producer license
shall
must pass a written examination unless exempt pursuant
to
under section 1206b.
(2) Within a reasonable time after receipt of a properly
completed application for an examination under this section, the
commissioner
shall subject give the applicant to a written
examination.
An However, the applicant shall not be given an the
examination unless the applicant has completed a program of study
registered
with the commissioner pursuant to under section 1204a.
An applicant shall file a certificate of completion of the
registered program of study with the commissioner on a form
prescribed by the commissioner indicating that the course of study
was completed by the applicant not more than 12 months before the
application for examination is received by the commissioner. The
commissioner may waive the applicable examination or program of
study
requirements of this section for a person an applicant who
meets any of the following requirements:
(a)
Applies The applicant
applies for a limited license as
designated by the commissioner.
(b)
Has The applicant has been a licensed insurance producer
within the preceding 12 months.
(c)
Has The applicant has obtained the chartered property and
casualty
underwriter designation, the chartered life underwriter
designation, certified insurance counselor designation, accredited
advisor
in insurance designation, the chartered financial
consultant
designation, the certified employee benefit specialist
designation,
the certified financial planner designation, the
fellow
life management institute designation, the life underwriting
training
council fellow designation, the registered health
underwriter
designation, the registered employee benefits
consultant
designation, the health insurance associate designation,
or
the associate in risk management designation.
(d)
Has The applicant has an associate's, bachelor's, or
master's degree with a concentration in insurance from an
institution approved by the commissioner.
(3) The examination under this section shall be entry level
and shall test the knowledge of the individual concerning the
qualifications for which application is made, the duties and
responsibilities of an insurance producer, and the insurance laws
and regulations of this state. Examinations required by this
section shall be developed and conducted as prescribed by the
commissioner.
(4) The commissioner may make arrangements, including
contracting with an outside testing service, for administering
examinations under this section and collecting the nonrefundable
fee in section 240(1)(h) or (4).
(5) Each individual applying for an examination under this
section shall remit a nonrefundable fee as prescribed in section
240(1)(h) or (4).
(6) An individual who fails to appear for the examination
required under this section as scheduled or fails to pass the
examination
shall must reapply for an examination and remit all
required examination fees and forms to be rescheduled for another
examination.
(7) The producer licensing examination under this section
shall be fair and entry level and shall not discriminate on any
prohibited basis. The examination shall have a targeted pass rate
of 70%. If the pass rate of the examination for any calendar year
is less than the targeted rate, the commissioner shall review the
examination for form and substance and assure that it is fair,
tests entry level knowledge, and conforms to the American
psychological association's standards on testing. By the first
quarter of the following calendar year, the commissioner shall
report to the legislature the result of the review and any
corrective changes he or she has made to the examination.