There is no similar federal regulation covering these activities. Insurance is generally regulated on the state level with the NAIC enacting model rules, procedures, and programs for states.
7.
Comparison of similar rules in adjacent states as found by OCI: The four adjacent states have substantially similar requirements relating to the agent licensing process, which generally follow the NAIC “Producer Licensing Model Act.” Where variations among the four adjacent states exist is generally in how the agent licensing process is administered (i.e. how and when documents and information are filed or communicated). However, a direct comparison among the states is difficult because states have developed processes that work best for their department based on their resources and due to differences in how much of the licensing process is specified by statute or code for each state. The changes being made in this proposed rule are generally meant to clarify confusing language and/or requirements and to maximize OCI’s resources to make Wisconsin’s agent licensing process more efficient and cost-effective. Accordingly, the proposed rule is not aimed at making changes to the substantive requirements or procedures that are substantially similar among the adjacent states with limited exceptions, in particular: (1) eliminating the requirement that nonresident producers provided a certification from their new home state and (2) eliminating the “banking” of prelicensing credits. OCI’s position is that these requirements are not only outdated, but also create an unnecessary burden on and cost to insurance agents and entities.
Illinois: the agent licensing provisions are generally found in 215 ILCS 5/500-5 to 215 ILCS 5/500-150 and ILL. ADMIN. CODE tit. 50 Subch. ii.
Agent Licensing Software: SBS.
New Home State: requires nonresident producers to provide certification from new home state.
Prelicensing Credits: requires “banking” of prelicensing credits.
Iowa: the agent licensing provisions are generally found in IOWA CODE §§ 522B.1 to 522B.18, and 522E.3 and
Agent Licensing Software: SBS.
New Home State: requires nonresident producers to provide certification from new home state.
Prelicensing Credits: requires “banking” of prelicensing credits.
Agent Licensing Software: SIRCON.
New Home State: requires nonresident producers to provide certification from new home state.
Prelicensing Credits: has a provision similar to Wisconsin’s current provision providing for “banking” of prelicensing credits.
Minnesota: the agent licensing provisions are generally found in Minn. Stat. §§ 60K.30 to 60K.56.
Agent Licensing Software: SIRCON.
New Home State: requires nonresident producers to provide certification from new home state.
Prelicensing Credits: OCI’s review did not find any provisions addressing the “banking” of prelicensing credits.
8.
A summary of the factual data and analytical methodologies that OCI used in support of the proposed rule and how any related findings support the regulatory approach chosen for the proposed rule:The OCI reviewed NAIC model acts, in particular the Producer Licensing Model Act. In addition, OCI reviewed SBS’s capabilities to ensure that changes are aligned with and utilize the technology and services offered by SBS.
9.
Any analysis and supporting documentation that OCI used in support of OCI’s determination of the rule’s effect on small businesses under s. 227.114: The proposed rule will likely have a positive impact on small businesses, including insurance agencies, pre-licensing and continuing education providers, and small insurance companies by reducing fees and administrative costs, eliminating unnecessary requirements, and streamlining processes. First, the proposed rule will eliminate the banking of prelicensing credits by education providers, which may reduce potential fees to applicants and providers for uploading the credits to SBS. In addition, the proposed rule will also eliminate the need for providers to collect the full social security number of prelicensing students, which can be costly to secure.
The proposed rule may also positively impact small business by reducing administrative costs through more effective and efficient processes. One of the key changes under the proposed rule is utilizing electronic means as the primary form of communication, which is faster and less expensive than providing paper copies through the mail. Finally, the switch to SBS will also allow small businesses to license new agents in less than 24 hours as compared to 13 days prior to the switch to SBS, and processing fees charged on applications are $1 less than the previous vendor charged.
The proposed rule allows for the appointment of agents to be processed online. While this is quicker and more efficient for companies, the NIPR charges a small administrative fee for online processing. Smaller insurers, such as town mutual insurers, will process their agent appointments online and pay the small administrative processing fee. OCI believes the financial impact will be minimal as town mutual insurers generally have very few appointed agents.
10.
Private Sector Fiscal Analysis.This rule change will have no significant effect on the private sector regulated by OCI.
11.
A description of the Effect on Small Business:This rule will have little or no effect on small businesses. Please see #9 for a detailed description of the proposed rule’s potential effect on small business.
12.
Agency contact person:or by contacting Karyn Culver, Paralegal, at:
Phone: (608) 267-9586
Address: 125 South Webster St – 2nd Floor, Madison WI 53703-3474
Mail: PO Box 7873, Madison, WI 53707-7873
13.
Place where comments are to be submitted and deadline for submission: The deadline for submitting comments is 4:00 p.m. on April 30, 2019.
Mailing address:
Timothy L. Cornelius
Legal Unit - OCI Rule Comment for Rule Ins 06315
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Street address:
Timothy L. Cornelius
Legal Unit - OCI Rule Comment for Rule Ins 06315
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
Email address:
