The Division of Insurance issued on September 23, 2014, Bulletin 2014-06, regarding the new continuing education law and the time allowed for compliance for certain insurance producers whose licenses expire between September 17, 2014 and December 31, 2014.
All insurance producers whose licenses expire in the next month the two may have to schedule in three hours of ethics instruction to comply with the new law. Insurance producers who are in their first license renewal may have to hustle to get additional continuing education credits to comply with statutory amendments that changed continuing education requirements.
Failure to comply with the continuing education requirements by January 5, 2014 may result in the suspension of the producer’s license and /or the producer being subject to monetary penalties
The Division of Insurance has decided that licensed producers who have licenses scheduled for renewal between September 17, 2014 and December 31, 2014 shall have until January 5, 2015 to comply with the new continuing education requirements mandated as the result of amendments to G.L. c. 175, §177E.
On June 17, 2014, the governor signed a bill amending the continuing education requirements for insurance producers licensed in Massachusetts. The statutory amendments that became effective on September 17, 2014, made administrative changes that immediately affected some insurance producers’ licensing renewals and continuing education requirements. (See “New Law Allows Mass. Commissioner To Fine For Failure To Finish Continuing Education Requirements”)
The statutory change in the new law:
- Made a producer’s license renewal date the date by which all continuing education requirements had to be completed.
- Made a component of the continuing education requirement, three hours of ethics, by way of a program of instruction or a seminar. The new ethics requirement does not increase the overall number of continuing education credit hours an insurance producer must complete. The law only required that ethics training make up at least 3 hours of the total continuing education credits.
- Made the attainment of sixty (60) hours of continuing education credits mandatory for all newly licensed insurance producers prior to their initial license renewal date.
According to the Division, any insurance producer who fails to complete the required number of continuing education credits by their license renewal date may be subject to:
- License non-renewal or suspension pending completion of the continuing education requirement; and /or
- Monetary penalties for noncompliance with the continuing education requirements.
The Division also states in its bulletin that, “Failure to comply with the continuing education requirements by January 5, 2014 may result in the suspension of the producer’s license and /or the producer being subject to monetary penalties.”