Eliminates retesting and renewal requirements for insurance producers.

A BILL FOR AN ACT

SECTION 1. Section 431:9A-105, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) An applicant's examination scores shall be valid for two years from the date of the examination [or last renewal, whichever is later]."

SECTION 2. Section 431:9A-112, Hawaii Revised Statutes, is amended as follows:

1. By amending the title and subsection (a) to read:

"§431:9A-112 License denial, [nonrenewal,] suspension, or revocation. (a) The commissioner may deny, place on probation, suspend, revoke, or refuse to issue [or renew] an insurance producer's license and may levy a civil penalty in accordance with articles 2 and 3, or any combination of these actions, for any of the following causes:

2. By amending subsection (c) to read:

"(c) The commissioner shall not [renew or] reinstate any license and shall deny, suspend, or revoke any license or application if the commissioner has received certification from an administering entity pursuant to chapter 436C that the licensee or applicant is in default or is in breach of any obligation under any student loan, student loan repayment contract, or scholarship contract, or has failed to comply with a repayment plan. Unless otherwise provided by law, if the commissioner has received such certification, the commissioner shall [renew,] reinstate[,] or grant a license only upon receipt of authorization from the administering entity."

SECTION 3. Section 431:9A-112.3, Hawaii Revised Statutes, is amended to read as follows:

"[[]§431:9A-112.3[]] Suspension or denial of license for noncompliance with support order. In addition to any other acts or conditions provided by law, the commissioner shall refuse to [renew,] reinstate[,] or restore, or shall deny or suspend any license if the commissioner has received certification from the child support enforcement agency pursuant to the terms of section 576D-13 that the licensee or applicant is not in compliance with an order of support or has failed to comply with a subpoena or warrant relating to a paternity or child support proceeding. Unless otherwise provided by law, following receipt of certification pursuant to this section, the commissioner shall [renew,] reinstate, restore, or grant the license only upon receipt of an authorization from the child support enforcement agency, office of child support hearings, or the family court. Sections 92-17, 431:9A-112, and 431:9A-126 shall not apply to a refusal to [renew,] reinstate[,] or restore a license or to a license suspension or denial pursuant to this section."

SECTION 4. Section 431:9A-116, Hawaii Revised Statutes, is amended to read as follows:

"[[]§431:9A-116[]] Reciprocity. [(a)] The commissioner shall waive any requirements for a nonresident license applicant with a valid license from the applicant's home state, except the requirements imposed by section 431:9A-108, so long as the applicant's home state awards nonresident licenses to residents of this State on the same basis.

[(b) A nonresident producer's satisfaction of the producer's home state's continuing education requirements for licensed insurance producers shall constitute satisfaction of this State's continuing education requirements so long as the nonresident producer's home state recognizes the satisfaction of its continuing education requirements imposed upon producers from this State on the same basis.]"

SECTION 5. Section 431:9A-142, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"§431:9A-142 Requirements for license [and renewal]."

SECTION 6. Section 431:9A-124, Hawaii Revised Statutes, is repealed.

["§431:9A-124 Prerequisites for license renewal. (a) To qualify for a license renewal a licensee shall:

(b) The required number of credit hours shall be as follows:

(c) Continuing education equivalents, as determined and approved by the commissioner, may include the teaching of continuing education courses and holding certain professional designations, but shall not include the use of carryover credit hours earned in excess of the required hours in any two-year renewal cycle.

(d) Unless an extension of time has been granted in advance by the commissioner, a licensee's failure to satisfy all of the continuing education requirements one month prior to the renewal date shall result in that licensee's license being automatically placed on an inactive status. To reactivate a license, the licensee shall submit proof to the insurance division that the requisite number of credit hours have been completed and the licensee shall pay any required fees and penalties.

(e) After a licensee completes an approved continuing education course, the approved course provider shall issue to the licensee a certificate of completion in a form approved by the commissioner that certifies that the licensee has successfully completed the course. Both the licensee and a person authorized to sign on behalf of the approved course provider shall sign the certificate of completion. The approved course provider shall electronically submit the certificate of completion to the insurance division not later than one month prior to the renewal date for the license.

(f) This section shall not apply to a licensee granted an exemption by the commissioner from this section pursuant to section 431:9A-116.

(g) The commissioner may grant an extension of time to meet the requirements of this section to a licensee on extended active military duty for a period of time equal to the number of days the licensee was on active military duty."]

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval.