Montana Administrative Register Notice 6-206 No. 2   01/30/2014    
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In the matter of the amendment of ARM 6.6.4202, 6.6.4203, 6.6.4206, 6.6.4208, 6.6.4211, 6.6.4212, and 6.6.4213 and the adoption of NEW RULE I pertaining to Continuing Education Program for Insurance Producers and Consultants









TO: All Concerned Persons


1. On February 20, 2014, at 10:00 a.m., the Commissioner of Securities and Insurance, Montana State Auditor, will hold a public hearing in the 2nd floor conference room, at the Office of the Commissioner of Securities and Insurance, Montana State Auditor (CSI), 840 Helena Ave., Helena, Montana, to consider the proposed amendment and adoption of the above-stated rules.


2. The CSI will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing, or need an alternative accessible format of this notice. If you require an accommodation, contact the CSI no later than 5:00 p.m., February 13, 2014, to advise us of the nature of the accommodation that you need. Please contact Darla Sautter, CSI, 840 Helena Avenue, Helena, Montana, 59601; telephone (406) 444-2726; TDD (406) 444-3246; fax (406) 444-3499; or e-mail dsautter@mt.gov.


3. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:


6.6.4202 DEFINITIONS  For the purposes of this subchapter, the following terms have the following meanings:

(1) and (2) remain the same.

(3) "Certificate of completion Biennial cycle" means the 24-month period in which required continuing education must be completed. An initial cycle may be longer than 24 months. a document issued by the sponsoring organization to the licensee signifying satisfactory completion of a course and reflecting credit hours earned by the licensee.

(4) through (8) remain the same.

(9) "SBS" means the electronics system owned by the NAIC and enhanced in partnership with state insurance departments that provides a comprehensive, web-based application for use by state regulators.

(9) through (11) remain the same but are renumbered (10) through (12).


AUTH: 33-1-313, 33-17-1206, MCA

IMP: 33-17-1203, 33-17-1204, MCA


6.6.4203 COURSE SUBMISSIONS (1) through (2)(b) remain the same.

(c) the proposed date(s) of offering course goals and objectives;

(d) course goals and objectives course length;

(e) major course topic(s) a syllabus or course outline;

(f) course length a summary of each course outline element;

(g) a list of other states that have approved the course and the credits granted the course in other states method of instruction, such as classroom, self- study, videotape, audiotape, teleconference, etc.;

            (h)  a syllabus or course outline method of administering examinations, if any;

(i) a summary of each course outline element method of attendance verification;

(j) method of instruction, such as classroom, self study, videotape, audiotape, teleconference, etc. instructors, if any;

(k) method of administering examinations, if any a designated contact person; and

(l) method of attendance verification; a written explanation of examination security measures and examination administration methods.

(m) method of student record maintenance;

(n) instructors, if any;

(o) a designated contact person;

(p) a written explanation of examination security measures and examination administration methods; and

(q) written notification of additional dates of course offering to the department three days in advance.

(3) through (5) remain the same.

(a) if a course is canceled for any reason, all charges are refundable in full, unless the refund policy is clearly defined in the enrollment application;

(b) through (d) remain the same.

(6) A sponsoring organization shall must provide proof of course completion to each course participant who successfully completes the approved course of study within one month of course completion or prior to the end of the calendar year during which the participant completed the course. The commissioner may grant the sponsoring organization up to two months to provide such proof of course completion, if the sponsoring organization notifies the course participants in writing, in advance of the course. submit course completion attendance through SBS for each course participant within 30 days of the course completion. A sponsoring organization's compliance with this rule satisfies the annual reporting requirements of 33-17-1205(4), MCA.

(7) remains the same.

(8) Except as provided in (15) below, course approval is for a period of two years following the course approval date.  A course without significant changes may be renewed without advisory council approval in a form approved by the commissioner.

(9) through (14) remain the same.

(15) Any credit hours assigned to a course submitted as described in (14), are available only to the producer, adjuster, or consultant who made the course submission for that one offering.


AUTH: 33-1-313, 33-17-1206, MCA

IMP: 33-17-1204, MCA


6.6.4206 CERTIFICATION REQUIREMENTS FOR LICENSEES AND LIMIT ON CREDIT FOR COURSES REPEATED AND TIMING OF EARNING CREDITS       (1) Each licensee subject to these rules must file an appropriate certificate of completion and pay the required certification fee each year in the first six months of the calendar year for courses completed in the preceding year. Such certification must be submitted on a schedule established on forms supplied or approved by the commissioner, and completed in their entirety. A licensee may not earn credit for any courses repeated as either student or instructor within the same biennial cycle.

            (2) Producers, adjusters, and consultants may not earn credit for any courses repeated as either student or instructor within a two-year period. A licensee may earn credit as soon as the licensee is licensed.


            AUTH: 33-1-313, 33-17-1206, MCA

            IMP: 33-17-1203, 33-17-1204, MCA


6.6.4208 NONRESIDENT REQUIREMENTS (1) A nonresident licensee whose state of residence imposes continuing education requirements similar to those of Montana, may comply with Montana's continuing education requirement by submitting a completed compliance certification form or a letter of certification from the resident state confirming compliance in that stateA nonresident licensee from a state that does not require continuing education shall satisfy the continuing education requirements of his or her designated home state. If the designated home state does not require continuing education, a licensee shall submit proof of course completion which demonstrates compliance with the basic requirements of 33-17-1203, MCA.

(2) Nonresident licensees from states that do not require continuing education must meet the requirements of this state.


AUTH: 33-1-313, 33-17-1206, MCA

IMP: 33-17-1203, 33-17-1204, MCA


6.6.4211 REQUESTS FOR RECONSIDERATION OF CREDIT HOUR ASSIGNMENT (1) through (1)(c) remain the same.

(2) The advisory council, at its next meeting, shall evaluate any submitted requests for reconsideration, the original course submission, and any additional materials provided to support the request for reconsideration within 60 days of the submission.

(3) through (6) remain the same.


AUTH: 33-1-313, 33-17-1206, MCA

IMP: 33-17-1204, MCA


6.6.4212 REQUESTS FOR RECONSIDERATION OF COURSE DISAPPROVAL (1) through (1)(c) remain the same.

(2) The advisory council shall review a request Requests for reconsideration, the original course submission, and any additional materials provided to support the request will be presented at the next corporal meeting, as defined in 2-3-202, MCA, of the advisory council within 60 days of the request. The advisory council may then make a recommendation to the commissioner to approve or disapprove.

(3) After evaluating the request for reconsideration, the advisory council may recommend to the commissioner to approve or disapprove the course.

(4) (3) The commissioner will shall review the recommendation of the advisory council and approve or disapprove the course.

(5) (4)  Credit hours assigned a course approved by the commissioner will must be granted to licensees who complete the course after the submission date of the request for reconsideration of course disapproval.


AUTH: 33-1-313, 33-17-1206, MCA

IMP:  33-17-1204, MCA


6.6.4213 CONDITIONS OF NONRESIDENT SPONSORING ORGANIZATIONS (1) The following conditions apply to nonresident sponsoring organizations whose state has signed a compact regarding sponsoring organizations that includes this state as a signatory: A nonresident sponsoring organization doing business in this state through any agreement conveying reciprocity to such an entity is subject to the following conditions:

(a) the commissioner may not require the sponsoring organization to file courses for substantive review that have been awarded credit by the resident state. However, the sponsoring organization shall file a course outline with the commissioner. The sponsoring organization shall also file the instructors' names and social security numbers;

(b) once the sponsoring organization's resident state reviews and approves the instructor's qualifications, the commissioner may not review the instructor's qualifications again;

(c) and (d) remain the same, but are renumbered (b) and (c).

(e)(d) the commissioner shall accept the midwest zone NAIC standard continuing education form or a substantially similar form provided by a nonresident sponsoring organization;

(f) through (h) remain the same, but are renumbered (e) through (g).


            AUTH: 33-1-313, 33-17-1206, MCA

            IMP: 33-17-1204, MCA


            4. The NEW RULE proposed to be adopted provides as follows:



(1) A request for an extension of time for required credit hour completion must be in writing and must include a narrative description of the reasons for the request and any available documentation to support the request.

(2) The licensee's licenses and appointments must remain in effect during an extension period granted by the commissioner.


AUTH: 33-1-313, 33-17-1206, MCA

IMP: 2-4-631, 33-17-1205, MCA


            4. STATEMENT OF REASONABLE NECESSITY: The Commissioner of Securities and Insurance, Montana State Auditor, Monica J. Lindeen, (commissioner) is the statewide elected official responsible for administering the Montana Insurance Code and regulating the business of insurance.


The proposed rule amendments are necessary to adapt to technological changes in the insurance field.


ARM 6.6.4202 includes a new definition for the software utilized by both the CSI and the NAIC. It is necessary to define this term since all continuing education requirements will be submitted via the online database.


The amendment to ARM 6.6.4203 is necessary to clean up superfluous language and provide clarity for those offering continuing education courses. The stricken language was irrelevant to the validity of the course, duplicative, or referenced information that is readily accessible via SBS.


The amendment to ARM 6.6.4206 is necessary to allow licensees to begin earning credit as soon as the license is granted. Since the initial licensing period may be longer than 24 months, there was some confusion within industry and the CSI as to when a new licensee could begin earning credit. The other change to the rule is necessary because SBS puts the burden of submission on the course offeror, not the licensee. Therefore, requiring licensees to submit data already submitted would be duplicating efforts.


ARM 6.6.4208 makes home state continuing education requirements identical to home state licensing requirements regarding designating home states. The rule is necessary to ensure there is not a situation wherein the CSI issues a license to a person under Title 33, Ch. 17, and then restricts that person's attempts to satisfy current continuing education requirements which comport with the person's designated home state.


The amendment to ARM 6.6.4211 is necessary to ensure the advisory council has adequate time to review a request for reconsideration of credit hour assignment. As worded, the rule required the council to review the request at its next meeting. This change allows the advisory council flexibility in review as participants are statewide and may not be available. ARM 6.6.4212 addresses this same concern regarding course approval.


The amendment to ARM 6.6.4213 is necessary to allow for any type of nonresident sponsoring organization to enter this state, not just one allowed by compact. The bill also removes requirements for social security numbers pursuant to legislative directive. Finally, the amendment recognizes that the NAIC sets forth standards, not zones within the NAIC.


New Rule I is necessary to clarify what the commissioner expects to be presented when a licensee requests an extension for good cause. Furthermore, it is necessary to continue licensee appointments so that the licensee may continue to write business pursuant to an extension.


            5. Concerned persons may submit their data, views, or arguments concerning the proposed actions either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to Brett O'Neil, Attorney, Office of the Commissioner of Securities and Insurance, Montana State Auditor, 840 Helena Ave., Helena, Montana, 59601; telephone (406) 444-2040; fax (406) 444-3499; or e-mail bo'neil@mt.gov, and must be received no later than 5:00 p.m., February 28, 2014.


            6. Brett O'Neil, Attorney, has been designated to preside over and conduct this hearing.


            7. The CSI maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Such written request may be mailed or delivered to Darla Sautter, Office of the Commissioner of Securities and Insurance, Montana State Auditor, 840 Helena Ave., Helena, Montana, 59601; telephone (406) 444-2726; fax (406) 444-3499; or e-mail dsautter@mt.gov, or may be made by completing a request form at any rules hearing held by the CSI.


            8. An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register. The Secretary of State strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods due to system maintenance or technical problems.


            9. Pursuant to 2-4-302, MCA, the bill sponsor contact requirements do not apply.


           10. The proposed rules do not significantly and directly impact small businesses; therefore, the requirements of 2-4-111, MCA, do not apply.





            /s/ Nick Mazanec                              /s/ Jesse Laslovich

            Nick Mazanec                                  Jesse Laslovich

            Rule Reviewer                                  Chief Legal Counsel


            Certified to the Secretary of State January 21, 2014.



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