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NAMIC 2006 Survey of New State Insurance Laws Summary and Analysis

Producer Licensure

Adjusters

Louisiana HB 1056 provides for the qualification and licensing of claims adjusters while HB 1384 provides for the qualification and licensing of public adjusters. New Hampshire SB 72 revises the law regarding the licensure of public adjusters at the request of the insurance department. Rhode Island SB 41 permits experienced adjusters not licensed in Rhode Island to engage in emergency insurance adjustment work in the event of an emergency. Tennessee HB 3676 enacts the Public Adjuster Licensing Act of 2006.

Agent Practices

Georgia HB 425 permits insurers to provide food or refreshments under certain circumstances to current or prospective clients during sales presentations and seminars.

Idaho HB 446 permits payment of a commission or promotion expense in connection with the issuance of a surplus loan if approved by the insurance director while HB 722 allows insurers or producers for insurers to offer to customers and prospective customers items having an aggregate value of $50 or less as inducements for the purchase of insurance. Maryland HB 597 prohibits an insurance producer, employee of such producer or other person from accepting any valuable consideration as an inducement to facilitate an agreement to finance a certain insurance premium that contains an assignment of or is otherwise secured by the unearned premium or refund obtainable from an insurer on cancellation of an insurance contract.

Massachusetts HB 1545 provides that any notice of insurance cancellations, modification or expiration shall contain a provision stating that any agent may make a written demand for reference to referees as to whether such action will affect the renewal, continuation or replacement of any policies placed with the company through the efforts of the agent, or service needed by the policyholder, as to justify renewal or continuation of any policies then in effect. Massachusetts SB 2060 relates to the payment of referral fees to unlicensed employees of insurance producers. Ohio SB 5 requires insurance consultants to disclose compensation in certain circumstances. Oklahoma HB 2375 redefines "not procurable" so a producer or broker need only show insurance is not procurable from accessible and applicable insurers.

Fee Exemptions

Georgia HB 1257 exempts certain change of address filings by agents, subagents, counselors and adjusters from a fee.

Licensing Requirements

Alabama SB 417 relates to certain definitions for the licensing of various insurance representatives while SB 251 provides for the biennial renewal of licenses. California AB 2387 amends existing law which provides for the licensing of fire and casualty broker-agents, personal lines broker agents, and life agents and that an applicant for a fire and casualty broker-agent license who is licensed as a personal lines agent is required to complete a minimum of 20 hours of prelicensing classroom study.

Florida HB 1113 requires applicants to submit fingerprints and pay a processing fee.

Maryland HB 246 removes provisions of law relating to the issuance of a temporary license to act as an insurer producer for property insurance or casualty insurance to an individual who has been licensed in another state. Mississippi SB 2076 exempts from examination applicants who shall be licensed to act only as a producer with respect to credit property insurance. Mississippi SB 2382 clarifies that an insurance producer who is not acting as an agent of an insurer is not required to become appointed.

New Jersey SB 275 exempts members of fraternal benefit societies from insurance producer licensing requirements in certain circumstances. Utah SB 115 provides that an attorney meeting requirements for the Utah State Bar meets the continuing education requirements for certain title insurance licenses. Virginia HB 261 allows an insurance agent who obtained the required continuing education course credits but failed to submit proof of compliance within the permitted time to submit proof of compliance after the State Corporation Commission has issued a notice of impending termination of the agent's license.

Miscellaneous Provisions

Kansas SB 176 relates to new terminology for insurance brokers. Kentucky HB 561 provides that no business entity shall act as a consultant unless licensed as a consultant.

Oklahoma HB 2934 defines "clearing corporation" and further defines "custodian" to include broker-dealer. Rhode Island enacted three laws. SB 2735 relates to surplus lines brokers and inability to obtain insurance; HB 7469 requires all resident insurance producers to obtain error and omission insurance; and HB 7470 revises statutes removing the prohibition against the formation of branch offices for producers.

Renewals

South Dakota HB 1042 revises requirements regarding the license renewal of insurance producers who do not sell, solicit or negotiate insurance.

Suspensions, Revocations

District of Columbia bill 202 clarifies due process rights afforded to producers under the suspension and revocation provisions of the Producer Summary Suspension Amendment Act. South Dakota HB 1070 prohibits insurers from taking specified actions based on receipt of a notice of hearings and charges against insurance producers. Utah HB 233 modifies the timing requirements for reporting to the commissioner that administrative or criminal action has been taken against certain persons.