HB 1452-2_ Filed 02/22/2007, 07:04 Klinker
PREVAILED Roll Call No. _______
FAILED Ayes _______
WITHDRAWN Noes _______
RULED OUT OF ORDER
HOUSE MOTION ____
I move that House Bill 1452 be amended to read as follows:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
education and insurance and to make an appropriation.
SOURCE: Page 1, line 1; (07)MO145201.1. -->
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
SOURCE: IC 20-12-22.3; (07)MO145201.1. -->
"SECTION 1. IC 20-12-22.3 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]:
Chapter 22.3. Insurance Education Scholarship Fund
Sec. 1. As used in this chapter, "commission" refers to the state
student assistance commission established by IC 20-12-21-4.
Sec. 2. As used in this chapter, "fund" refers to the insurance
education scholarship fund established by section 5 of this chapter.
Sec. 3. As used in this chapter, "insurance student" means a
student who studies or intends to study:
(1) insurance; or
(2) business with an emphasis on insurance.
Sec. 4. As used in this chapter,"state educational institution" has
the meaning set forth in IC 20-12-0.5-1.
Sec. 5. (a) The insurance education scholarship fund is
established to encourage and promote qualified individuals to
pursue a career in insurance in Indiana.
(b) The fund consists of amounts deposited under
Sec. 6. (a) The commission shall administer the fund.
(b) The expenses of administering the fund shall be paid from
money in the fund.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested. Interest that
accrues from the investments shall be deposited in the fund.
(d) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
(e) There is annually appropriated to the commission all money
in the fund to carry out the purposes of this chapter.
Sec. 7. (a) The money in the fund shall be used to provide annual
scholarships to insurance students who qualify under section 9 of
this chapter. The commission shall determine the amount of money
to be allocated from the fund for scholarships under this chapter.
(b) A scholarship awarded under this chapter may be used only
for the payment of tuition or fees that are:
(1) approved by the state educational institution that awards
the scholarship; and
(2) not otherwise payable under any other scholarship or form
of financial assistance specifically designated for tuition or
(c) Subject to section 8(c) of this chapter, each scholarship
awarded under this chapter is renewable under section 9 of this
chapter for a total number of terms that does not exceed eight (8)
full-time semesters (or the equivalent) or twelve (12) full-time
quarters (or the equivalent).
Sec. 8. (a) The commission for higher education shall provide
the commission with the most recent information concerning the
number of insurance students at each state educational institution.
(b) The commission shall allocate the available money from the
fund to each state educational institution that has:
(1) an insurance program; or
(2) a business program with an emphasis on insurance;
in proportion to the number of insurance students enrolled at each
state educational institution based upon the information received
by the commission under subsection (a).
(c) Each state educational institution shall determine which of
the state educational institution's insurance students who apply
qualify under section 9 of this chapter. In addition, the state
educational institution shall consider the need of the applicant
when awarding scholarships under this chapter.
(d) The state educational institution may not grant a scholarship
renewal to an insurance student for an academic year that ends
later than six (6) years after the date on which the insurance
student received the insurance student's initial scholarship under
(e) Any funds that:
(1) are allocated to a state educational institution under
section 8(b) of this chapter; and
(2) are not used for scholarships under this chapter;
shall be returned to the commission for reallocation by the
commission to any other eligible state educational institution in
need of additional funds.
Sec. 9. To qualify for a scholarship or a scholarship renewal
from the fund, an insurance student must:
(1) be admitted to an approved state educational institution as
a full-time or part-time insurance student; and
(2) meet the qualifications established by the commission
under section 11 of this chapter.
Sec. 10. (a) The commission shall maintain complete and
accurate records in administering the fund, including records
concerning the scholarships awarded under this chapter.
(b) Each state educational institution shall provide the
commission with information concerning the following:
(1) The awarding of scholarships under this chapter.
(2) The academic progress made by each recipient of a
scholarship under this chapter.
(3) Other pertinent information requested by the commission.
Sec. 11. (a) The commission shall establish qualifications for
recipients of scholarships and scholarship renewals under this
chapter under rules adopted under subsection (b).
(b) The commission shall adopt rules under IC 4-22-2 necessary
to carry out this chapter.
SOURCE: IC 27-1-15.6-7.3; (07)MO145201.2. -->
SECTION 2. IC 27-1-15.6-7.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 7.3. (a) The commissioner may
design or have designed an insurance producer certificate suitable
for framing and display.
(b) Upon request of an insurance producer, the commissioner
may issue a certificate described in subsection (a).
(c) The commissioner may impose and collect a reasonable fee
for a certificate issued under subsection (b). The commissioner
shall deposit fees collected under this subsection into the insurance
education scholarship fund established by IC 20-12-22.3-5.
(d) The commissioner shall establish guidelines to implement
SOURCE: IC 27-1-15.6-24.1; (07)MO145201.3. -->
SECTION 3. IC 27-1-15.6-24.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 24.1. A licensed insurance
producer may charge a reasonable fee for personal lines property
and casualty insurance or services related to personal lines
property and casualty insurance subject to the following
(1) The amount of a fee and the basis for calculating a fee may
not vary among personal lines insureds.
(2) The amount of a fee is subject to the approval of the
SOURCE: IC 27-1-15.6-32; (07)MO145201.4. -->
SECTION 4. IC 27-1-15.6-32 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 32. (a) The department
shall adopt rules under IC 4-22-2 to set fees for licensure under this
chapter, IC 27-1-15.7, and IC 27-1-15.8.
(b) Insurance producer and limited lines producer license renewal
fees are due every
four (4) two (2) years. The fee charged by the
department every four (4) two (2) years for a:
(1) resident license is forty dollars ($40); and
(2) nonresident license is ninety dollars ($90).
(c) Consultant renewal fees are due every twenty-four (24) months.
(d) Surplus lines producer renewal fees are due
annually. every two
(2) years. The fee charged by the department every two (2) years
(1) resident license is eighty dollars ($80); and
(2) nonresident license is one hundred twenty dollars ($120).
(e) The commissioner may issue a duplicate license for any license
issued under this chapter. The fee charged by the commissioner for the
issuance of a duplicate:
(1) insurance producer license;
(2) surplus lines producer license;
(3) limited lines producer license; or
(4) consultant license;
may not exceed ten dollars ($10).
(f) A fee charged and collected under this section shall be
deposited into the department of insurance fund established by
SOURCE: IC 27-1-15.7-2; (07)MO145201.5. -->
SECTION 5. IC 27-1-15.7-2, AS AMENDED BY P.L.73-2006,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 2. (a) Except as provided in subsection (b), to
renew a license issued under IC 27-1-15.6:
(1) a resident insurance producer must complete at least
hours of credit in continuing education courses; and
(2) a resident limited lines producer must complete at least
(10) five (5)
hours of credit in continuing education courses.
An attorney in good standing who is admitted to the practice of law in
Indiana and holds a license issued under IC 27-1-15.6 may complete all
or any number of hours of continuing education required by this
subsection by completing an equivalent number of hours in continuing
legal education courses that are related to the business of insurance.
(b) To renew a license issued under IC 27-1-15.6, a limited lines
producer with a title qualification under IC 27-1-15.6-7(a)(8) must
complete at least
fourteen (14) seven (7)
hours of credit in continuing
education courses related to the business of title insurance with at least
one (1) hour of instruction in a structured setting or comparable
self-study in each of the following:
(1) Ethical practices in the marketing and selling of title
(2) Title insurance underwriting.
(3) Escrow issues.
(4) Principles of the federal Real Estate Settlement Procedures
Act (12 U.S.C. 2608).
An attorney in good standing who is admitted to the practice of law in
Indiana and holds a license issued under IC 27-1-15.6 with a title
qualification under IC 27-1-15.6-7(a)(8) may complete all or any
number of hours of continuing education required by this subsection by
completing an equivalent number of hours in continuing legal
education courses related to the business of title insurance or any
aspect of real property law.
(c) The following insurance producers are not required to complete
continuing education courses to renew a license under this chapter:
(1) A limited lines producer who is licensed without examination
under IC 27-1-15.6-18(1) or IC 27-1-15.6-18(2).
(2) A limited line credit insurance producer.
(3) An insurance producer who is at least seventy (70) years of
age and has been a licensed insurance producer continuously for
at least twenty (20) years immediately preceding the license
(d) To satisfy the requirements of subsection (a) or (b), a licensee
may use only those credit hours earned in continuing education courses
completed by the licensee:
(1) after the effective date of the licensee's last renewal of a
license under this chapter; or
(2) if the licensee is renewing a license for the first time, after the
date on which the licensee was issued the license under this
(e) If an insurance producer receives qualification for a license in
more than one (1) line of authority under IC 27-1-15.6, the insurance
producer may not be required to complete a total of more than
(40) twenty (20) hours of credit in continuing education courses to
renew the license.
(f) Except as provided in subsection (g), a licensee may receive
credit only for completing continuing education courses that have been
approved by the commissioner under section 4 of this chapter.
(g) A licensee who teaches a course approved by the commissioner
under section 4 of this chapter shall receive continuing education credit
for teaching the course.
(h) When a licensee renews a license issued under this chapter, the
licensee must submit:
(1) a continuing education statement that:
(A) is in a format authorized by the commissioner;
(B) is signed by the licensee under oath; and
(C) lists the continuing education courses completed by the
licensee to satisfy the continuing education requirements of
this section; and
(2) any other information required by the commissioner.
(i) A continuing education statement submitted under subsection (h)
may be reviewed and audited by the department.
(j) A licensee shall retain a copy of the original certificate of
completion received by the licensee for completion of a continuing
(k) A licensee who completes a continuing education course that:
(1) is approved by the commissioner under section 4 of this
(2) is held in a classroom setting; and
(3) concerns ethics;
shall receive continuing education credit for the number of hours for
which the course is approved plus additional hours, not to exceed two
(2) hours in a renewal period, equal to the number of hours for which
the course is approved.
SOURCE: IC 27-1-15.8-4; (07)MO145201.6. -->
SECTION 6. IC 27-1-15.8-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 4.
(a) During the period
that a resident surplus lines producer's license is in effect, the licensee
shall keep in force a bond in the penal sum of not less than twenty
thousand dollars ($20,000) with an authorized corporate surety
approved by the commissioner. The aggregate liability of the surety for
any and all claims on a bond does not exceed the penal sum of the
bond. A bond may not be terminated unless written notice of
termination is provided by the surety to the licensee and the
commissioner not less than thirty (30) days before termination. Upon
termination of a resident license for which a bond was in effect, the
commissioner shall notify the surety of the termination within ten (10)
business days. All surety protection under this section inures to the
benefit of the state of Indiana to assure the payment of all premium
(b) A resident surplus lines producer shall, at the time of an initial
filing under subsection (c), file with the commissioner proof of the
bond in the amount required under subsection (a). In each subsequent
calendar year, the resident surplus lines producer shall file proof that
the bond remains in effect. A subsequent filing under this subsection
shall be made in conjunction with the annual filing required under
In addition to all other charges, fees, and taxes that may be
imposed by law, a surplus lines producer licensed under this chapter
shall, on or before February 1 and August 1 of each year, collect from
the insured and remit to the department for the use and benefit of the
state of Indiana an amount equal to two and one-half percent (2 1/2%)
of all gross premiums upon all policies and contracts procured by the
surplus lines producer under the provisions of this section during the
preceding six (6) month period ending December 31 and June 30,
respectively. The declarations page of a policy referred to in this
subsection must itemize the amounts of all charges for taxes, fees, and
(d) (b) A licensed surplus lines producer shall execute and file with
the department of insurance on or before the twentieth day of each
month an affidavit that specifies all transactions, policies, and contracts
procured during the preceding calendar month, including:
(1) the description and location of the insured property or risk and
the name of the insured;
(2) the gross premiums charged in the policy or contract;
(3) the name and home office address of the insurer whose policy
or contract is issued, and the kind of insurance effected; and
(4) a statement that:
(A) the licensee, after diligent effort, was unable to procure
from any insurer authorized to transact the particular class of
insurance business in Indiana the full amount of insurance
required to protect the insured; and
(B) the insurance placed under this chapter is not placed for
the purpose of procuring it at a premium rate lower than would
be accepted by an insurer authorized and licensed to transact
insurance business in Indiana.
(e) (c) A licensed surplus lines producer shall file with the
department, not later than March 31 of each year, the financial
statement, dated as of December 31 of the preceding year, of each
unauthorized insurer from whom the surplus lines producer has
procured a policy or contract. The insurance commissioner may, in the
commissioner's discretion, after reviewing the financial statement of
the unauthorized insurer, order the surplus lines producer to cancel an
unauthorized insurer's policies and contracts if the commissioner is of
the opinion that the financial statement or condition of the
unauthorized insurer does not warrant continuance of the risk.
(f) (d) A licensed surplus lines producer shall keep a separate
account of all business transacted under this section. The account may
be inspected at any time by the commissioner or the commissioner's
deputy or examiner.
(g) (e) An insurer that issues a policy or contract to insure a risk
under this section is considered to have appointed the commissioner as
the insurer's attorney upon whom process may be served in Indiana in
any suit, action, or proceeding based upon or arising out of the policy
(h) (f) The commissioner may revoke or refuse to renew a surplus
lines producer's license for failure to comply with this section.
(i) (g) A surplus lines producer licensed under this chapter may
accept and place policies or contracts authorized under this section for
an insurance producer duly licensed in Indiana, and may compensate
the insurance producer even though the insurance producer is not
licensed under this chapter.
(j) (h) If a surplus lines producer does not remit an amount due to
the department within the time prescribed in subsection (c), (a), the
commissioner shall assess the surplus lines producer a penalty of ten
percent (10%) of the amount due. The commissioner shall assess a
further penalty of an additional one percent (1%) of the amount due for
each month or portion of a month that any amount due remains unpaid
after the first month. Penalties assessed under this subsection are
payable by the surplus lines producer and are not collectible from an
Renumber all SECTIONS consecutively.
(Reference is to HB 1452 as printed February 20, 2007.)
MO145201/DI 103 2007