Don's Discussion

Are you a member with a question? Contact IA&B Legal & Corporate Affairs Director Don Bankus at 717-918-9204 or DonB@IABforME.com.

QUESTION:

Is there an age at which a licensed producer becomes totally exempt from the requirement to take continuing education (CE) in order to renew their license?

ANSWER:

While the statutes and regulations governing CE requirements vary for each of IA&B’s three states, the good news – at least if you’re an optimist – is that each state may provide at least some degree of exemption or credit for the seasoned producer. The available exemptions/credits are as follows:

DELAWARE

General requirement: Resident licensees are required to complete 24 credit hours during each 24-month licensing period.

Exemption – credit: A licensee who has been continuously licensed for 25 years or longer prior to the start of their licensing period, or who holds an approved professional designation, shall receive an automatic 12 credits in each biennium.

Of note: The 12 automatic credits cannot be applied to fulfill any applicable flood (2 hours), ethics (3 hours), or long-term care (3 hours) CE requirements.

Applicable statutes/regulations: 18 DE Admin. Code 504, at Section 8.0 – Licensee’s Responsibility (specifically at subsection 8.3 – Automatic Credit)

MARYLAND

General requirement: Licensees are required to complete 24 credit hours during each 24-month licensing period.

Exemption – credit: If a licensee has held a license for 25 or more consecutive years as of Oct. 1, 2008, the licensee shall only be required to complete 8 hours of CE in each renewal period.

Of note: If you qualify for the above exemption, you’re still required to meet the flood (2 hours), ethics (3 hours), and long-term care (2 hours) CE requirement, if applicable.

“Grandfathering” exemption: In addition, per MIA Producer Bulletin 13-07, licensees who were age 70 and above as of April 30, 2013 are exempt from the general CE requirements.

Of note: If you qualify for the “grandfathering” exemption, you’re still required to meet the flood (2 hours) and long-term care (2 hours) CE requirements, if applicable.

Applicable statutes/regulations: MD Ins. Code Section 10-116 (specifically at subsection 10-116(a)(3)(iii); Code of Maryland Regulations (COMAR) Section 31.03.02.03 (specifically at subsection B); Maryland Insurance Administration Producer Bulletin 13- 07 (specifically at subsection II)

PENNSYLVANIA

General requirement: Licensees are required to complete 24 credit hours during each 24-month licensing period.

“Grandfathering” exemption: A licensee who was licensed prior to Jan. 1, 1971, and who has been continuously licensed for all lines of authority since that time, is exempt from CE requirements.

Of note: If the licensee adds a line of authority, or lets his or her license lapse, the exemption becomes inapplicable.

Applicable statutes/regulations: 40 P.S. Section 310.8 (specifically subsection 310.8(c)(1)

CONCLUSION

As you can see, none of our three states is overly generous with regard to eliminating and/or reducing a seasoned professional’s CE requirements. And while we continue to lobby the states’ respective insurance departments and legislatures for amendments or revisions to broaden eligibility for the grandfathering of CE credits, out attempts thus far have yet to bear fruit.

This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

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