HB408: HB408 Insurance; repeal prelicensing education requirements applicable to certain licenses

25 LC 55 0479 House Bill 408 By: Representatives Gilliard of the 162nd, Cannon of the 58th, and Scott of the 76th A BILL TO BE ENTITLED AN ACT To amend Chapter 23 of Title 33 of the Official Code of Georgia Annotated, relating to1 insurance licensing, so as to repeal prelicensing education requirements applicable to certain2 insurance licenses; to provide a three-day maximum on the reexamination waiting period for3 applicants; to make conforming changes; to provide for related matters; to repeal conflicting4 laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Chapter 23 of Title 33 of the Official Code of Georgia Annotate d, relating to insurance8 licensing, is amended by revising Code Section 33-23-5, relatin g to qualifications and9 requirements for license, as follows:10 "33-23-5.11 (a) For the protection of the people of this state, the Commis sioner shall not issue,12 continue, or permit to exist any license, except in compliance with this chapter and except13 as provided in Code Sections 33-23-3, 33-23-4, 33-23-12, 33-23-13, 33-23-14, 33-23-16,14 33-23-17, 33-23-29, 33-23-29.1, and 33-23-37. The Commissioner shall not issue a license15 H. B. 408 - 1 - 25 LC 55 0479 to any individual applicant for a license who does not meet or conform to qualifications or16 requirements set forth in paragraphs (1) through (7) of this subsection:17 (1) The individual applicant shall be a resident of this state who shall reside and be18 present within this state for at least six months of every year or an individual whose19 principal place of business is within this state; provided, however, that in cities, towns,20 or trade areas, either unincorporated or composed of two or more incorporated cities or21 towns, located partly within and partly outside this state, requirements as to residence and22 principal place of business shall be deemed met if the residenc e or place of business is23 located in any part of the city, town, or trade area and if the other state in which the city,24 town, or trade area is located in part has established like requirements as to residence and25 place of business. The individual applying for an agent, adjus ter, or counselor license26 shall be at least 18 years of age;27 (2) If applying for an agent's license for property and casualty insurance, the applicant28 shall not use or intend to use such license for the purpose of obtaining a rebate or29 commission upon controlled business; and the applicant shall no t in any calendar year30 effect controlled business that will aggregate as much as 25 pe rcent of the volume of31 insurance effected by such applicant during such year, as measured by the comparative32 amounts of premiums;33 (3) The individual applicant shall be of good character;34 (4) The individual applicant shall pass any written examination required for the license35 by this article, provided that:36 (A) An individual who applies for an insurance agent's license in this state who was37 previously licensed for the same lines of authority in another state shall not be required38 to complete any prelicensing education or examination. This exemption shall only be39 available if the individual is currently licensed in that state or if the application is40 received within 90 days of the cancellation of the applicant's previous license and if the41 prior state issues a certification that, at the time of cancell ation, the applicant was in42 H. B. 408 - 2 - 25 LC 55 0479 good standing in that state or the state's producer data base records maintained by the43 National Association of Insurance Commissioners, its affiliates, or subsidiaries indicate44 that the agent is or was licensed in good standing for the line of authority requested; and45 (B) An individual licensed as an insurance agent in another st ate who moves to this46 state shall make application within 90 days of establishing legal residence to become47 a resident licensee pursuant to Code Section 33-23-8. No preli censing education or48 examination shall be required of that individual to obtain a li cense for any line of49 authority previously held in the prior state except where the Commissioner determines50 otherwise by rule or regulation;51 (5) If applying for a license as counselor, the applicant shall show that he or she either52 has had five years' experience as an agent, subagent, or adjuster or in some other phase53 of the insurance business or has sufficient teaching or educati onal qualifications or54 experience which, in the opinion of the Commissioner, has qualified the applicant to act55 as such counselor; and the applicant shall pass such examination as shall be required by56 the Commissioner unless such applicant is exempted by the Commissioner, based on the57 applicant's experience and qualifications and pursuant to a reg ulation adopted by the58 Commissioner;59 (6) If applying for an agent's license, limited subagent's license, or adjuster's license, no60 applicant shall be qualified therefor or be so licensed unless he or she has successfully61 completed classroom courses in insurance satisfactory to the Commissioner at a school62 which has been approved by the Commissioner Reserved; and63 (7) The Commissioner shall by rule or regulation establish criteria and procedures for the64 scope of prelicensing requirements and exemptions, if any, to t he prelicensing or65 examination requirements.66 (b) An individual who was licensed as an agent, counselor, limited subagent, surplus line67 broker, or adjuster at the time such individual was employed by the Commissioner and who68 while so employed was employed in responsible insurance duties as a full-time bona fide69 H. B. 408 - 3 - 25 LC 55 0479 employee shall be permitted to reinstate his or her license upon termination of employment70 if written request is made within 90 days after the date of termination of employment with71 the Commissioner.72 (c) Active licensees who apply for additional licenses and individuals who apply for the73 reinstatement of a license prior to six months from the license expiration date shall not be74 required to submit fingerprints pursuant to Code Section 33-23-5.1.75 (d) Notwithstanding paragraph (1) of subsection (a) of this Co de section, no resident of76 Canada may be licensed as an independent adjuster pursuant to t his Code section or77 designate Georgia as his or her home state unless such person has successfully passed the78 adjuster examination and has complied with other applicable portions of this Code section."79 SECTION 2.80 Said chapter is further amended in Code Section 33-23-10, relat ing to examination of81 applicants, by revising subsection (a) as follows:82 "(a) Each individual applicant for a license as agent, limited subagent, counselor, adjuster,83 or surplus line broker shall submit to a personal examination i n writing as to his or her84 competence to act in such capacity. The examination shall be prepared and given by the85 Commissioner or a designee of the Commissioner and shall be given and graded in a fair86 and impartial manner and without unfair discrimination as between individuals examined. 87 Any required examination may be supplemented by an oral examination at the discretion88 of the Commissioner. The Commissioner shall provide by rule or regulation for a89 reasonable waiting period before giving a reexamination to an applicant who failed to pass90 a previous similar examination; provided, however, that such wa iting period shall not91 exceed three days from the date of the prior examination."92 H. B. 408 - 4 - 25 LC 55 0479 SECTION 3.93 Said chapter is further amended in Code Section 33-23-13, relat ing to temporary licenses,94 by revising subsection (a) as follows:95 "(a) In the event of the death of an agent or limited subagent, including a temporary agent96 or limited subagent, or the inability to act as an agent or lim ited subagent by reason of97 service in the armed services of the United States, illness or other disability, or termination98 of appointment by the insurer, i f there is no other individual connected with the agency99 who is licensed as an agent or limited subagent in regard to insurance of the classification100 transacted by the agent or limited subagent deceased or unable to act, the Commissioner101 may issue a temporary license as agent or limited subagent in regard to insurance of such102 classification to an employee of the agency, to a member of the family of said former agent103 or limited subagent, or to some associate or to a guardian, rec eiver, executor, or104 administrator for the purpose of continuing or winding up the business affairs of the agent,105 limited subagent, or agency. A temporary license shall be issued only to an applicant who106 has filed a sworn application upon forms prescribed by the Commissioner. The applicant107 shall not be required to meet the requirements as to examinatio n, a n d residence, and108 education required for licensing of agents or limited subagents other than temporary agents. 109 If the Commissioner deems the applicant to be qualified for a t emporary license, the110 Commissioner shall issue the license."111 SECTION 4.112 All laws and parts of laws in conflict with this Act are repealed.113 H. B. 408 - 5 -