SB-1477, As Passed Senate, November 12, 2008

SUBSTITUTE FOR

SENATE BILL NO. 1477

     A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending section 1204 (MCL 500.1204), as amended by 2001 PA 228.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1204. (1) A resident individual applying for an insurance

producer license shall pass a written examination unless exempt

pursuant to section 1206b.

     (2) Within a reasonable time after receipt of a properly

completed application for examination, the commissioner shall

subject the applicant to a written examination. An applicant shall

not be given an examination unless the applicant has completed a

program of study registered with the commissioner pursuant to

section 1204a. An applicant shall file a certificate of completion

of the registered program of study with the commissioner on a form

prescribed by the commissioner indicating that the course of study

was completed by the applicant not more than 6 12 months before the

application for examination is received by the commissioner. The

commissioner may waive the applicable examination or program of

study requirements of this section for a person who applies meets

any of the following:

     (a) Applies for a limited license as designated by the

commissioner. ; for a person who has

     (b) Has been a licensed insurance producer within the

preceding 12 months. ; for a person who has

     (c) Has obtained the chartered property and casualty

underwriter designation, the chartered life underwriter

designation, certified insurance counselor designation, accredited

advisor in insurance designation, or the chartered financial

consultant designation, ; or for a person who has the certified

employee benefit specialist designation, the certified financial

planner designation, the fellow life management institute

designation, the life underwriting training council fellow

designation, the registered health underwriter designation, the

registered employee benefits consultant designation, the health

insurance associate designation, or the associate in risk

management designation.

     (d) Has an associate's, bachelor's, or master's degree with a

concentration in insurance from an institution approved by the

commissioner.

     (3) The examination shall be entry level and shall test the

knowledge of the individual concerning the qualifications for which

application is made, the duties and responsibilities of an

insurance producer, and the insurance laws and regulations of this

state. Examinations required by this section shall be developed and

conducted as prescribed by the commissioner.

     (4) The commissioner may make arrangements, including

contracting with an outside testing service, for administering

examinations under this section and collecting the nonrefundable

fee in section 240(1)(h) or (4).

     (5) Each individual applying for an examination under this

section shall remit a nonrefundable fee as prescribed in section

240(1)(h) or (4).

     (6) An individual who fails to appear for the examination

required under this section as scheduled or fails to pass the

examination shall reapply for an examination and remit all required

examination fees and forms to be rescheduled for another

examination.

     Enacting section 1. This amendatory act takes effect 6 months

after the date it is enacted into law.