806 KAR 9:220. Continuing education.
RELATES
TO: KRS 304.2-295, 304.5-030, 304.9-230, 304.9-260, 304.9-295, 304.14-642,
304.15-700(3), Pub.L. 108-264 sec. 207
STATUTORY
AUTHORITY: KRS 304.2-110(1), 304.9-295(6), (8), 304.14-642(5), 304.15-720,
Pub.L. 108-264 sec. 207
NECESSITY,
FUNCTION, AND CONFORMITY:. KRS 304.2-110(1) authorizes the Commissioner of
Insurance to promulgate administrative regulations necessary for or as an aid
to the effectuation of any provision of the Kentucky Insurance Code as defined
in KRS 304.1-010. KRS 304.9-295(6) and (8) authorize the commissioner to limit
the number of continuing education hours carried forward to the subsequent
biennium. KRS 304.14-642(5) requires the commissioner to promulgate an
administrative regulation to implement the Kentucky Long-Term Care Partnership
Program. KRS 304.15-720 requires the commissioner to promulgate administrative
regulations to implement KRS 304.15-700 to 304.15-720, Kentucky's Life Settlement
Law. Pub.L. 108-264 sec. 207 requires the Administrator of the Federal
Emergency Management Agency to establish minimum training and education
requirements for all insurance agents who sell flood insurance policies in
cooperation with state insurance regulators. This administrative regulation
establishes procedures for approval of agent and life settlement broker continuing
education courses and obtaining credit for attending continuing education
courses.
Section
1. Definitions. (1) "Commissioner" means the Commissioner of the
Department of Insurance.
(2)
"Department" means the Department of Insurance.
(3)
"Provider" means the sponsor of a continuing education course.
Section
2. Continuing Education Course Requirements. (1) A continuing education course
shall be offered by a provider approved by the commissioner, pursuant to this
section:
(a)
The application for approval of a provider shall be submitted on the
"Provider Approval Application" form incorporated by reference, in
806 KAR 9:340; and
(b)
The information shall show that the provider is qualified, through knowledge or
experience, to provide prelicensing or continuing education courses and that
the provider is properly authorized to charge a course fee, if any.
(2)
(a) A continuing education course shall be filed with and approved by the commissioner
at least sixty (60) days in advance of advertising unless the commissioner waives
the sixty (60) day period.
(b)
In determining whether to grant a waiver, the commissioner shall consider
whether the failure to file and approve the continuing education course within
the time period specified in paragraph (a) of this subsection was due to
circumstances which would reasonably justify failure to comply.
(3)
(a) 1. All applications for approval of a continuing education course shall be submitted
on the "Course Approval Application" form incorporated by reference,
in 806 KAR 9:340, which shall be accompanied by the "Filing Fee Submission
Form" incorporated by reference, in 806 KAR 9:340, and a nonrefundable
initial fee of ten (10) dollars.
2.
Notwithstanding the requirements in paragraph (a)1 of this subsection,
application for approval of a continuing education course being offered in more
than one (1) state may be submitted on the National Association of Insurance
Commissioners' "Uniform Continuing Education Reciprocity Course Filing
Form" incorporated by reference in 806 KAR 9:340.
(b)
After review and assignment of the number of credit hours, the commissioner
shall notify the provider of the additional fee of five (5) dollars per credit
hour due pursuant to 806 KAR 4:010.
(c)
A continuing education course shall not be approved until all fees are paid.
(4)
The commissioner shall approve a continuing education course if it meets the
following requirements:
(a)
The continuing education course shall contribute directly, at a professional
level, to the competence of the licensee including the following subjects:
1.
Insurance, annuities, and risk management;
2.
Insurance laws and administrative regulations;
3.
Mathematics, statistics, and probability;
4.
Economics;
5.
Business law;
6.
Finance;
7.
Taxes;
8.
Agency management including all aspects of agency operations that support the
long-term stability of the agency system and encourage the service and
protection of customers, unless specifically excluded in subsection (5) of this
section;
9.
Ethics; and
10.
Other topics approved by the commissioner which contribute directly at a
professional level to the competence of the licensee; and (b) Course
development and presentation:
1.
The continuing education course shall have substantial intellectual or
practical content to enhance and improve the knowledge and professional
competence of participants;
2.
The course shall be developed by persons who are qualified in the subject
matter and instructional design;
3.
Material shall be current, relevant, accurate, and include valid reference
materials, graphics, and interactivity;
4.
The course shall have clearly defined objectives and course completion
criteria;
5.
Each course shall have a written outline and study materials or texts;
6.
Information shall show that the instructors are qualified, through training or
experience, to instruct the continuing education course competently and shall
be submitted on the "Instructor Approval Application" incorporated by
reference, in 806 KAR 9:340, and shall be accompanied by the "Filing Fee
Submission Form" incorporated by reference, as in 806 KAR 9:340;
7.
The number of participants and physical facilities shall be consistent with the
teaching method specified; and
8.
All courses shall include some means of evaluating quality.
(5)
Continuing education credit shall not be provided for:
(a)
Any course used to prepare for taking an examination required pursuant to KRS
Chapter 304;
(b)
Committee service of professional organizations;
(c)
Computer training to develop functional skills;
(d)
Motivational or sales training courses; and
(e)
Any course not in accordance with Section 2(4) of this administrative
regulation.
(6)
Any material change in a continuing education course shall be filed with and
approved by the commissioner prior to use. The material change shall not be
approved until the filing fees are paid in accordance with subsection (3) of
this section.
(7)
Biennially, providers shall renew approval of continuing education courses and
instructors. Providers shall file applicable information with and pay the
applicable fee specified in 806 KAR 4:010 to the commissioner prior to June 30
of even-numbered years.
Section
3. Measurement of Credit Hours. Continuing education courses shall be measured
according to course type and calculated in the following manner:
(1)
Classroom courses. Each credit hour of a continuing education course shall
include at least fifty (50) minutes of continuous instruction or participation.
(2)
Self-Study Courses. Each credit hour of a continuing education course completed
online or by correspondence shall be calculated in accordance with the National
Association of Insurance Commissioners' "Recommended Guidelines for Online
Courses."
(3)
A continuing education course, regardless of whether it is offered as a
classroom course, online course, by correspondence, or self-study, shall not be
credited for continuing education by a licensee more than once per continuing
education biennium.
Section
4. Reasons for Withdrawal. The commissioner may withdraw approval of a
continuing education course, provider, or instructor for any of the following
reasons:
(1)
The continuing education course teaching methods or course content:
(a)
No longer meet the requirements of:
1.
KRS 304.9-295; or
2.
Sections 2 and 3 of this administrative regulation; or
(b)
The course has been materially changed without being filed with and approved by
the commissioner, in accordance with Section 2 of this administrative
regulation;
(2)
The continuing education course provider has certified to the commissioner that
a licensee has satisfactorily completed the course when, in fact, the licensee
has not done so;
(3)
The continuing education course provider fails to certify to the commissioner
that a licensee has satisfactorily completed the course when, in fact, the
licensee has done so; or
(4)
Unethical conduct of a provider or instructor.
Section
5. Product Specific Continuing Education and Training Requirements. (1) Any
resident licensee selling, soliciting, or negotiating insurance products that
qualify under the Long-Term Care Partnership Insurance Program, as described in
KRS 304.14-462, shall complete eight (8) hours of initial long-term care training,
and four (4) hours of additional training for each biennial continuing education
compliance period.
(2)
Any resident licensee licensed with Property and Casualty lines of authority
selling federal flood insurance shall complete three (3) hours of training in
accordance with the Flood Insurance Reform Act of 2004, as set forth in Pub.L.
108-264, Section 207.
(3)(a)
Any individual licensee selling, soliciting, or negotiating the sale of an
annuity, as
defined
in KRS 304.5-030, shall successfully complete four (4) hours of initial
training that shall include information on the following topics:
1.
The types of annuities and various classifications of annuities;
2.
Identification of the parties to an annuity;
3.
The manner in which fixed, variable, and indexed annuity contract provisions
affect consumers;
4.
The application of income taxation of qualified and non-qualified annuities;
5.
The primary uses of annuities; and
6.
Appropriate sales practices, replacement, and disclosure requirements.
(b)
The training required by subsection (3)(a) of this section shall not include:
1.
Marketing information;
2.
Sales techniques; or
3.
Specific information about a particular insurer’s product.
(c)
An individual licensee who holds a life line of authority on the effective date
of this administrative regulation shall complete the training requirements set
forth in subsection (3)(a) of this section within six (6) months after the
effective date of these training requirements.
(d)
An individual licensee who obtains a life line of authority on or after the
effective date of this administrative regulation shall complete the training
requirements set forth in subsection (3)(a) of this section prior to selling,
soliciting, or negotiating the sale of an annuity.
(e)
The training required by subsection (3)(a) of this section shall be filed and
approved in accordance with Section 2 of this administrative regulation.
(f)
The satisfaction of the training requirements of another state that are
substantially similar to the provisions of subsection (3)(a) of this section
shall satisfy the training requirements in this section.
(g)
The training requirements in this subsection shall be effective on January 1,
2012.
(4)
The training requirements in subsections (1), (2) and (3) of this section may
apply toward fulfillment of a licensee's continuing education requirement as
set forth in KRS 304.2-295 and 304.15-700(3), if the training has been approved
as a continuing education course in accordance with Section 2 of this administrative
regulation and proof of completion is made in accordance with Section 6 of this
administrative regulation.
Section
6. Proof of Completion. (1)(a) Within thirty (30) days of completion of a continuing
education course, the provider shall certify to the commissioner the names of
all licensees who satisfactorily completed the continuing education course.
(b)
The provider shall maintain the "Continuing Education Course Attendance
Roster" form, incorporated by reference in 806 KAR 9:340, for at least
five (5) years and shall be subject to random audits to ensure compliance with
this requirement.
(c)
The certification of completion required by this section for a classroom course
shall be submitted electronically on the "Continuing Education Course Attendance
Roster" form, incorporated by reference in 806 KAR 9:340, through the
Department of Insurance Web site, https://insurance.ky.gov/eservices/default.aspx.
(d)
1. The certification of completion required by this section for a self-study course
shall be submitted on the "Continuing Education Certificate of
Completion" Form, incorporated by reference in 806 KAR 9:340.
2.
The provider shall:
a.
Forward the form to the licensee for signature; and
b.
Instruct the licensee to file the form with the commissioner.
3.
In addition, the information may be submitted electronically by the provider to
the commissioner through the Department of Insurance Web site, https://insurance.ky.gov/eservices/default.aspx.
(2)
(a) The provider of the continuing education course shall furnish to the
licensee
attending
the course a certificate and the licensee shall retain the certificate for at
least five (5) years.
(b)
The certification required by this subsection shall be on the "Continuing
Education Certificate of Completion" Form, incorporated by reference in
806 KAR 9:340.
(c)
The provider of the continuing education course shall retain a copy of the
certificate for at least five (5) years.
(d)
Providers of continuing education courses and licensees shall make available to
the commissioner's designee copies of these certificates upon the request of
the commissioner.
(3)
Pursuant to KRS 304.9-295(2) and (9), every licensed individual required to
complete continuing education shall be responsible for ensuring that his or her
continuing education certificates of completion are timely filed with the
department even if the provider does not fulfill its responsibilities under
this administrative regulation.
(4)
(a) At least six (6) hours of total credit earned per biennium shall be
directly related
to
any one (1) or more of the lines of authority for which the agent is actively
licensed.
(b)
At least three (3) hours of total credit earned per biennium shall be in
ethics.
(c)
Hours may be classroom, self-study, or a combination of both.
(5)
Each self-study course shall require successful completion of a written
examination or the submission of a statement by the licensee made under oath
that the course was completed within the biennium.
(6)
Licensees may carry forward up to twelve (12) excess credit hours to the
subsequent continuing education biennium.
Section
7. Cancellation and Reinstatement of Licenses. (1) Proof of fulfillment of a
resident licensee's continuing education requirement shall be received in
conjunction with license renewal in accordance with KRS 304.9-260 and
304.9-295.
(2)
If the department does not receive proof of the fulfillment of a licensee's
continuing education requirements on or before the deadline, pursuant to KRS
304.9-295, the commissioner shall:
(a)
Make information of the deficiency available to the licensee; and
(b)
Terminate the license if proof of completion of the deficient hours on the
"Continuing Education Course Attendance Roster" Form incorporated by
reference, in 806 KAR 9:340, or the "Continuing Education Certificate of
Completion" Form incorporated by reference, in 806 KAR 9:340, is not
received by the department on or before the deadline in accordance with KRS
304.9-295.
(3)
Within twelve (12) months after a license is terminated for failing to submit
certification of continuing education, the license may be reissued if the
licensee:
(a)
Satisfies the delinquent continuing education requirements;
(b)
Submits a new application with required attachments for a license; and
(c)
Submits the applicable fees.
(4)
If the continuing education delinquency remains unsatisfied for twelve (12)
months or longer, the former licensee shall satisfy all of the licensing
requirements specified in KRS Chapter 304, Subtitle 9.
Section
8. Requests for an Extension of Time for Continuing Education. (1) An agent
exempted from continuing education requirements on the basis of a supporting
affidavit that the agent license is maintained for the sole purpose of
receiving renewals or deferred commissions may withdraw the continuing
education exemption and may have all restrictions against selling, soliciting,
and negotiating insurance removed from the agent license by:
(a)
Completing the continuing education requirements for the immediate preceding
continuing education biennium;
(b)
Providing a certification of completion of those continuing education
requirements; and
(c)
Providing a signed, written statement withdrawing the affidavit.
(2)
Use of a supporting affidavit that the agent license is maintained for the sole
purpose of receiving renewals or deferred commissions for any reason, including
an extension for completion of continuing education requirements for a
continuing education biennium, shall be a violation of KRS 304.9-295 and shall
subject the affiant to suspension or revocation of the agent license.
(3)
Members of the Armed Forces who have been mobilized or deployed in support of
their duties may:
(a)
Request an extension of time for completion of continuing education
requirements, in accordance with KRS 304.9-260(3), by filing with the
department form, "Request for Waiver of Renewal Procedures or Exemption
from Examination or Extension for Continuing Education Due to Active Military
Service Deployment," incorporated by reference in 806 KAR 9:340; or
(b)
Request a waiver for continuing education requirements in accordance with KRS
304.9-260(3).
Section
9. Limited lines of authority as identified in KRS 304.9-230 shall be exempt
from all continuing education requirements.
Section
10. Incorporation by Reference. (1) "Recommended Guidelines for Online
Courses", 2005 National Association of Insurance Commissioners, is
incorporated by reference.
(2)
This material may be inspected, copied or obtained, subject to applicable
copyright law, at the Kentucky Department of Insurance, 215 West Main Street,
Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. (17 Ky.R. 803; eff.
10-14-1990; 18 Ky.R. 803; eff. 11-8-1991; 21 Ky.R. 2797; 22 Ky.R. 58; reprinted
675; eff. 7-6-1995; 27 Ky.R. 1594; 2254; eff. 2-15-2001; 29 Ky.R. 2358; 2689;
eff. 5-13-2003; 32 Ky.R. 318; 906; 1619; eff. 3-31-2006; 35 Ky.R. 1023; 1468;
eff. 1-5-2009; 37 Ky.R. 1554; eff. 3-4-2011; 37 Ky.R 1554; 38 Ky.R. 124; 599;
eff. 10-7-2011.)
