SB 0193 Governs the qualifications for licensing insurance producers and revises deduction for insurance examination fees
LR Number:0775L.05T Fiscal Note:0775-05
Committee:Insurance and Housing
Last Action:07/12/01 - Signed by Governor Journal page:
Title:HCS SS SB 193
Effective Date:January 1, 2003
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Current Bill Summary

HCS/SS/SB 193 - This act revises the law governing the licensing of insurance agents and brokers. The act removes distinctions between agents and brokers in terms of licensing, referring to each as "insurance producers". The act revises most of the provisions pertaining to licensure including: the courses of study initially required for licensure, continuing education, temporary licensure, the termination and renewal of agency contracts, examination requirements, broker compensation restrictions, suspension and revocation of licenses, penalties for violations, closed and confidential records, and fees for licensure. This act is modeled after the Producer Licensing Model Act promulgated by the National Association of Insurance Companies. The insurance producer provisions of this act are similar to HB 1616 (2000). The producer provisions of this act become effective January 1, 2003.

Under this act, unless rejected by the General Assembly by April 1, 2003, for all tax years beginning on or after January 1, 2003, refunding any amount deducted for examination fees which exceeds an insurance company's or association's premium tax liability is prohibited. This act, however, allows insurers to carryover the examination fee deduction to future tax years until the full deduction is claimed. The deduction may not be carried forward more than 5 years. The carryover deduction for examination fees shall be credited wholly against the general revenue fund and shall not cause a reduction in revenue to the county foreign insurance fund (Section 148.400). This provision of the act is similar to SB 471 (2001).

This act allows the Director of Insurance to issue a surplus lines license to any holder of a current resident or nonresident property and casualty license. Current law is limited to a resident holder of a property and casualty license. This act requires the surplus line broker to file a bond in the amount of $100,000 or in an amount equal to the sum of the tax liability of the previous year, whichever is smaller. This provision of this act is similar to SB 605 (2001)(section 384.043).

This act requires all disciplinary action records against an insurance producer which result less in a voluntary forfeiture of $200 or less shall be expunged after five years (section 374.285).