Regulatory Updates

Idaho to allow applicants for resident insurance producer licenses to request a temporary license pending review of their criminal history reports. See attachment for full details.

Pursuant to California Insurance Code §1763.1, I, by order, may declare eligible for placement with a non-admitted insurer, exempt from all of the requirements of California Insurance Code §1763, (except the filing of a confidential written report), any type of insurance coverage or risk for which, after a public hearing, I find that there is not a reasonable or adequate market among admitted insurers or that the type of coverage is for new, innovative products for which a reasonable or adequate market among admitted insurers has not had time to develop. In 2022, as required by law, my Department held a public hearing and comment period regarding the annual renewal of the list. After the public hearing and receiving comments, I decided to not make any changes to the Export List. 

See attachment for full details.

Alabama recently issued a bulletin stating they will no longer regulate prepaid legal insurance. See attached bulletin.

Effective July 23, 2023, Washington will no longer require pre-licensing education to take insurance exam. 

~~Effective July 14, 2023~~, Utah will be updating Title fees for Resident Licensing, Resident Licensing Renewals, Nonresident Licensing Renewals. All current fees for Resident Producer Org and Resident Producer Individual are still applicable unless otherwise noted. Update July 13, 2023-The update to the Utah Title fees is delayed. Resident and Nonresident Renewals updates are delayed until July 20th, 2023.  Initial Resident licensing has been delayed until August 11th.

Effective May 25, 2023, Florida made specific changes to their state statutes. See attachment for high level list of changes.

See bold section below for language removed. See attachment for full details. 45-09-01-03. Surplus lines insurance producer must conduct search. The licensed surplus lines insurance producer seeking the placement of nonadmitted insurance must conduct a diligent search to ascertain whether the insurance, indemnity contract, or surety bond can be procured from a company authorized to do business in this state. The surplus lines insurance producer may rely on a diligent search done by a licensed insurance producer or the insured if the surplus lines insurance producer deems it sufficient. ~~**After the placing of any surplus lines insurance, the surplus lines insurance producer must complete and file with the commissioner a surplus lines affidavit confirming such a search has been done no later than March first for the quarter ending the preceding December thirty-first, June first for the quarter ending the preceding March thirty-first, September first for the quarter ending the preceding June thirtieth, and December first for the quarter ending the preceding September thirtieth of each year. The affidavit is not required if the insured is an exempt commercial purchaser as defined in North Dakota Century Code section 26.1-44-02**.~~ History: Effective January 1, 1982; amended effective December 1, 2001; July 1, 2012; April 1, 2021, January 1, 2024. General Authority: NDCC 26.1-44-09 Law Implemented: NDCC 26.1-44-02

Effective January 1, 2023, Florida is adding an annuity training requirement for Residents.

Specific training requirements apply to agents who transact annuity products.      a.   An agent must have adequate annuity product knowledge and comply with the insurer's standards for product training.  Agents may rely on insurer-provided product-specific training standards and materials to comply with this paragraph.      b.   In addition to the insurer-provided product-specific training, agents must complete a one-time 4-hour training course.           I.   The training course is separate from the CE requirements in FL ST § 626.2815.  The course may be eligible for CE credit if the course provider submits and receives approval from the Department.          II.   Agents who hold a life line of authority and who sell annuities must complete the course: (1)   by 7/1/2024, if already licensed on 1/1/2024;                      or  (2)   prior to selling annuities, if the producer was licensed after 1/1/2024. III.   The training must cover: (1)   the types of annuities and various classifications; (2)   identification of the parties to an annuity; (3)   how product-specific annuity contract features affect consumers; (4)   the application of income taxation of qualified and non-qualified annuities; (5)   the primary uses of annuities; and (6)   appropriate standard of conduct, sales practices, replacement, and disclosure requirements. IV.   Additional topics may be offered in conjunction with the required topics. V.   The training course may not cover: (1)   marketing information; (2)   sales techniques; or (3)   specific information about a particular insurer's products. VI.   An agent who has completed an annuity training course before 1/1/2024, must, by 7/1/2024, complete either: (1)   a new 4-hour training course; or (2)   an additional 1-hour training course on appropriate sales practices, replacement, and disclosure requirements. VII.   Training may be completed by classroom or self-study methods. VIII.   Satisfaction of substantially similar requirements in another state will satisfy FL ST § 627.4554(6). IX.   Satisfaction of the training requirement components of a course with components substantially similar to FL ST § 627.4554(6) provisions will satisfy this statute's training requirements. X.   An insurer must verify that an agent has completed training before allowing the agent to sell annuity products.

Effective July 14, 2023, the following requirements will be added to the Designated Responsible Licensed Producer (DRLP) validations. If the business entity is applying or renewing for Viatical Settlement Provider (PDB Code: 715), Viatical Settlement Representative (PDB Code: 8513), or Viatical Settlement Broker Entity (PDB Code: 8013), then the DRLP section of the application will be required. Applicant must provide a DRLP that is actively licensed in Mississippi as a Viatical Settlement Representative or a Viatical Settlement Broker.

Effective June 9th, 2023, a new transaction type will be implemented for Vermont to process individual primary name updates.