Chapter Ins 26

Chapter Ins 26

PRELICENSING EDUCATION

Ins 26.01   Purpose.

Ins 26.02   Scope.

Ins 26.03   Definitions.

Ins 26.04   Prelicensing requirement.

Ins 26.05   Requirements for approval of certification of attendance at credit courses.

Ins 26.06   Requirements for approval of certification of attendance at noncredit programs.

Ins 26.07   Evidence of attendance for noncredit classroom, correspondence, self-study, or on-line programs.

Ins 26.08   Attendance requirements for noncredit programs.

Ins 26.09   Correspondence courses.

Ins 26.10   Investigation and review.

Ins 26.01 Ins 26.01 Purpose. The commissioner of insurance finds that prelicensing education should be required of all insurance applicants for major lines of insurance. This requirement will assist in assuring that insurance agents receive needed information regarding insurance, insurance ethics, and sales practices.

Ins 26.01 History History: Cr. Register, June, 1992, No. 438, eff. 7-1-92.

Ins 26.02 Ins 26.02 Scope. This chapter applies to all applicants for insurance intermediary licenses in the state of Wisconsin unless exempted under s. Ins 26.04 (2).

Ins 26.02 History History: Cr. Register, June, 1992, No. 438, eff. 7-1-92.

Ins 26.03 Ins 26.03 Definitions.

Ins 26.03(1) (1) “Accredited institution of higher education“ means a law school accredited by the American bar association or other schools accredited by any accrediting commission or association which has been recognized by the U.S. Department of Education.

Ins 26.03(2) (2) “Certificate of prelicensing education” means a completed form as described in Appendix 5.

Ins 26.03(3) (3) “Credit course” means a course which can be applied toward an associate degree or higher degree at an accredited institution of higher education.

Ins 26.03(3m) (3m) “Credit hour” means a period of study, included as a part of a course, consisting of no less than 50 minutes of classroom instruction, or 4,500 words per credit hour for correspondence, self-study, audio or video courses, or on-line courses.

Ins 26.03(4) (4) “Evidence of attendance” means an official transcript, student grade report, or commissioner-approved certificate showing satisfactory completion of educational programs or training sessions.

Ins 26.03(5) (5) “Exemption request” means a completed request as prescribed by the commissioner.

Ins 26.03(6) (6) “Noncredit program” means an educational program or training session which does not satisfy the requirements for an associate degree or higher education degree at the entity offering the educational program or training session.

Ins 26.03 History History: Cr. Register, June, 1992, No. 438, eff. 7-1-92; CR 05-111: cr. (3m) Register October 2006 No. 610, eff. 11-1-06; CR 09-022: am. (1), (3m) and (5) Register August 2009 No. 644, eff. 9-1-09; CR 19-025: am. (3m), (5) Register August 2020 No. 776, eff. 9-1-20; correction in (3m) made under s. 35.17, Stats., Register August 2020 No. 776.

Ins 26.04 Ins 26.04 Prelicensing requirement.

Ins 26.04(1) (1) Each applicant for a property, personal lines, casualty, life, or accident and health insurance license shall complete, not more than one year earlier than the date tested, at least 20 hours of a preliminary educational program approved by the commissioner in accordance with this chapter.

Ins 26.04(2) (2) Minimum prelicensing educational requirements shall not apply to the following:

Ins 26.04(2)(a) (a) Any applicant applying for a limited line insurance license for credit insurance, legal expense insurance, miscellaneous limited line, title insurance, crop, surety, or travel insurance.

Ins 26.04(2)(b) (b) Any nonresident applying for a nonresident license in the state of Wisconsin.

Ins 26.04(2)(c) (c) Any applicant who has completed a 2-year Wisconsin vocational school degree in insurance who submits evidence of attendance with the application.

Ins 26.04(2)(d) (d) Any applicant who has completed a 4-year college degree in business with an insurance emphasis who submits evidence of attendance with their application.

Ins 26.04(2)(e) (e) An applicant for a reinsurance intermediary-broker, reinsurance intermediary-manager or managing general agent limited-line license.

Ins 26.04(2)(f) (f) An applicant applying for an original resident license who held a license within the previous 12 months as a resident insurance agent in another state for each of the lines applied for in Wisconsin is exempt from prelicensing education and examination requirements. An application shall be filed in a manner prescribed by the commissioner using the NAIC Uniform Application. A completed application shall include: the NAIC Uniform Application; payment of any fees; and any documentation required in answer to questions on the application. If confirmation of the previous home state, as defined by s. Ins 28.03 (3m), license status is not attainable from the National Insurance Producer Registry, evidence of licensing from the previous home state is required.

Ins 26.04(2)(g) (g) An applicant applying for an original resident license for the Life line of authority who provides satisfactory evidence of currently holding any of the following professional designations or successor designations: Certified Employee Benefit Specialist (CEBS), Chartered Financial Consultant (ChFC), Certified Insurance Counselor (CIC), Certified Financial Planner (CFP), Chartered Life Underwriter (CLU), Fellow of the Life Management Institute (FLMI), or Life Underwriter Training Council Fellow (LUTCF).

Ins 26.04(2)(h) (h) An applicant applying for an original resident license for the Accident & Health line of authority who provides satisfactory evidence of currently holding any of the following professional designations or successor designations: Registered Health Underwriter (RHU), Certified Employee Benefit Specialist (CEBS), Registered Employee Benefits Counselor (REBC), or Health Insurance Associate (HIA).

Ins 26.04(2)(i) (i) An applicant applying for an original resident license for the Property, Casualty, or Personal Lines P&C lines of authority who provides satisfactory evidence of currently holding any of the following professional designations or successor designations: Accredited Advisor in Insurance (AAI), Associate in Risk Management (ARM), Certified Insurance Counselor (CIC), or Chartered Property and Casualty Underwriter (CPCU).

Ins 26.04(3) (3) If an applicant is exempt under sub. (2), the applicant shall submit an exemption request with all supporting documentation in a manner prescribed by the commissioner.

Ins 26.04 History History: Cr. Register, June, 1992, No. 438, eff. 7-1-92; emerg. cr. (2) (e), eff. 3-12-93; cr. (2) (e), Register, July, 1993, No. 451, eff. 8-1-93; am. (1), cr. (2) (f), Register, January, 1999, No. 517, eff. 2-1-99; emerg. am. (1), (2) (a) and (f) and (3), eff. 11-9-01; CR 01-074: am. (1), (2) (a) and (f); Register January 2002 No. 553, eff. 2-1-02; CR 05-111: am. (2) (f) and (3), cr. (2) (g) to (i) Register October 2006 No. 610, eff. 11-1-06; CR 07-096: am. (2) (a) Register March 2008 No. 627, eff. 4-1-08; CR 09-022: am. (2) (a) and (f) Register August 2009 No. 644, eff. 9-1-09; CR 19-025: am. (2) (f), (3) Register August 2020 No. 776, eff. 9-1-20; republished to correct an error in transcription in (2) (f), (i) Register December 2023 No. 816.

Ins 26.05 Ins 26.05 Requirements for approval of certification of attendance at credit courses.

Ins 26.05(1) (1) Approval of credit courses. An accredited institution of higher education seeking initial approval or reapproval of individual credit courses shall submit its application for course approval in a manner prescribed by the commissioner. The commissioner may require the following information and materials:

Ins 26.05(1)(a) (a) The name of the department in the school which is offering the courses;

Ins 26.05(1)(b) (b) The method of instruction for each course;

Ins 26.05(1)(c) (c) The course numbers and titles;

Ins 26.05(1)(d) (d) Detailed outlines of each course with specific allocations of class room hours to each topic showing the minimum time allocated to the topics as described in appendices 1 through 4;

Ins 26.05(1)(e) (e) A current school course catalogue;

Ins 26.05(1)(f) (f) Evidence of prior approval or exemption by the Wisconsin educational approval board, if required by s. 440.52, Stats.; and

Ins 26.05(1)(g) (g) Other information as specified by the commissioner.

Ins 26.05(2) (2) Application approval and expiration of approval. Upon receipt of an application for approval of a credit program, the commissioner shall determine if the application meets the requirements and if the program provides for instruction of appendices 1 to 4 in a manner required by this rule. The commissioner shall issue his or her decision on approval of an application no later than 60 days following the receipt of the completed application and all information required.

Ins 26.05(2g) (2g) Provider approval fees. The initial application fee to be paid by each licensed provider will be set through a competitive bid process not to exceed limits identified in s. 601.31 (1) (x) 1., Stats. The biennial regulation fee paid by each licensed provider will be set through a competitive bid process not to exceed limits identified in s. 601.31 (1) (x) 2., Stats. Wisconsin governmental bodies, such as universities and technical colleges, shall be exempt from these fees.

Ins 26.05(2r) (2r) Course approval fees.

Ins 26.05(2r)(a) (a) The fee to be paid for each course submission by each provider shall be set through a competitive bid process not to exceed statutory limits identified in s. 601.31 (1) (x) 3., Stats.

Ins 26.05(2r)(b) (b) The fee to be paid for each course renewal by each provider shall not exceed 4 times the credit hour fee per course.

Ins 26.05(3) (3) Evidence of attendance. The commissioner shall accept an official transcript or student grade report as evidence of satisfactory completion of credit courses. Certificates of prelicensing education shall be provided to each student in a hard copy or electronically.

Ins 26.05(4) (4) Attendance requirements. Students shall satisfy attendance requirements by successfully completing credit courses in accordance with the attendance requirements of the school. The commissioner shall not accept attendance at credit courses on an audit basis to satisfy the requirements of this chapter.

Ins 26.05 History History: Cr. Register, June, 1992, No. 438, eff. 7-1-92.; cr. (5), Register, January, 1999, No. 517, eff. 2-1-99; correction in (1) (f) made under s. 13.93 (2m) (b) 7., Stats., Register September 2001 No. 549, eff. 10-1-01; CR 05-111: am. (5) Register October 2006 No. 610, eff. 11-1-06; correction in (1) (f) made under s. 13.93 (2m) (b) 7., Stats., Register October 2006 No. 610; CR 09-022: am. (1) (f), (2) and (3), cr. (2g) and (2r) Register August 2009 No. 644, eff. 9-1-09; correction in (1) (f) made under s. 13.92 (4) (b) 7., (2g) renumbered from (2g) (a) under s. 13.92 (4) (b) 1., Stats., Register November 2018 No. 755; CR 19-025: am. (1) (intro.), (3), r. (5) Register August 2020 No. 776, eff. 9-1-20.

Ins 26.06 Ins 26.06 Requirements for approval of certification of attendance at noncredit programs.

Ins 26.06(1) (1) Approval of noncredit educational programs. An entity seeking initial approval or reapproval from the commissioner of an insurance noncredit program shall submit an application in a manner prescribed by the commissioner. The commissioner may require the following information and materials:

Ins 26.06(1)(a) (a) Evidence of prior approval or exemption by the Wisconsin educational approval board, if required by s. 440.52, Stats.;

Ins 26.06(1)(b) (b) A description of the qualifications of each instructor and the subject matter the instructor will be teaching. Instructors of noncredit programs shall be approved by the commissioner. Instructors shall meet the criteria set forth in sub. (2) (b);

Ins 26.06(1)(c) (c) Listing of the noncredit program’s organizational structure, registration policies, fee schedules and promotional material, for the school;

Ins 26.06(1)(d) (d) Detailed outlines of the subject matter to be covered by the program with specific allocations of classroom, correspondence, self-study, or on-line hours to each topic meeting the minimum standards as set forth in appendices 1 through 4. This should include a description of textbooks, workbooks and other instructional materials. The operator of a noncredit program shall provide section A and section B. Each must be provided as a separate and discrete segment. Each section can be broken up into subsections as long as no other insurance-related instruction is provided by the noncredit program between the subsections;

Ins 26.06(1)(e) (e) A description of the student record systems including a description of the methods for documenting attendance;

Ins 26.06(1)(f) (f) The method used by the noncredit program for evaluating instructors and a summary of previous evaluations conducted;

Ins 26.06(1)(g) (g) The time, date, and location of each noncredit classroom program. The commissioner may allow a noncredit program to apply for initial approval without specific information concerning dates, times, locations, and instructors, but the noncredit program shall provide this information in a format prescribed by the commissioner no later than 30 days prior to the start of the course;

Ins 26.06(1)(h) (h) An original signature of the person authorized to sign certifications; and

Ins 26.06(1)(i) (i) Other information as specified by the commissioner.

Ins 26.06(2) (2) Criteria for approval. In order to be approved, noncredit programs shall:

Ins 26.06(2)(a) (a) Not discriminate against anyone on the basis of sex, race, religion, age, physical disability, sexual orientation, or national origin in their educational programs;

Ins 26.06(2)(b) (b) Document that instructors are experienced and qualified in insurance and satisfy at least one of the following criteria:

Ins 26.06(2)(b)1. 1. An instructor who is or has been engaged in the practice of teaching insurance courses at an accredited institution of higher education for at least the last 3 years;

Ins 26.06(2)(b)2. 2. A properly licensed insurance intermediary for at least the past 5 years and demonstrates to the commissioner that he or she is of good character and has the knowledge and breadth of experience to instruct the scope of the subject area for which he or she will be responsible;

Ins 26.06(2)(b)3. 3. A member of the state bar in at least one state or the District of Columbia who is engaged in the field of insurance-related law; or,

Ins 26.06(2)(b)4. 4. A Life instructor who holds any of the following professional designations or successor designations: Certified Employee Benefit Specialist (CEBS); Chartered Financial Consultant (ChFC); Certified Insurance Counselor (CIC); Certified Financial Planner (CFP); Chartered Life Underwriter (CLU); Fellow of the Life Management Institute (FLMI); or Life Underwriter Training Council Fellow (LUTCF);

Ins 26.06(2)(b)5. 5. An Accident & Health instructor who holds any of the following professional designations or successor designations: Registered Health Underwriter (RHU); Certified Employee Benefit Specialist (CEBS); Registered Employee Benefits Counselor(REBC); or Health Insurance Associate (HIA);

Ins 26.06(2)(b)6. 6. A Property, Casualty, or Personal Lines P&C instructor who holds any of the following professional designations or successor designations: Accredited Advisor in Insurance (AAI); Associate in Risk Management (ARM); Certified Insurance Counselor (CIC); or Chartered Property and Casualty Underwriter (CPCU); or