DEPARTMENT OF REGULATORY AGENCIES
Division of Insurance
3 CCR 702-1
Amended Regulation 1-2-5
INSURANCE PRODUCER PRE-LICENSING EDUCATION
REQUIREMENTS FOR RESIDENTS
Section 1	Authority
Section 2	Scope And Purpose
Section 3	Applicability
Section 4	Definitions
Section 5	General Requirements
Section 6	Course Approval
Section 7	Course Hour Requirements
Section 8	Certification and Verification
Section 9	Period of Validity for Prelicensing Course Certificates
Section 10	Exemptions from Prelicensing Education
Section 11	Compliance 
Section 12	Severability
Section 13	Further Information and Submittals
Section 14	Effective Date
Section 15	History
Section 1	Authority
This regulation is promulgated under the authority of §§ 10-1-109, 10-2-104, and 10-2-201(2), C.R.S.
Section 2	Scope And Purpose
The purpose of this regulation is to set forth the prelicensing education required for all applicants for a Resident Insurance Producer License issued by the State of Colorado.
Section 3	Applicability
The requirements of this regulation shall apply to all applicants for a Resident Insurance Producer License issued by the State of Colorado.
Section 4 	Definitions
As used in this Regulation: 
A.	“Course Provider” shall mean those individuals and/or business entities that have been approved by the Division to offer prelicensing courses for Colorado resident insurance producers. 
B.	“Division” shall mean the Colorado Division of Insurance. 
C.	“Insurance Producer” shall have the same meaning as defined in § 10-2-103 (6.5), C.R.S.
D. 	“License” shall have the same meaning as defined in § 10-2-103(7), C.R.S.
E. 	“Line of Authority” shall mean specific type of insurance as authorized in § 10-2-407, C.R.S. 
F. 	“NAIC” shall mean the National Association of Insurance Commissioners.  
G. 	“Resident” shall have the meaning as defined in § 10-2-405, C.R.S.
Section 5	 General Requirements
Any person applying for a Colorado Resident Insurance Producer License, other than those exempt pursuant to Section 10 of this Regulation, must successfully complete prelicensing education before taking the state producer license examination.  The prelicensing education required by this Regulation shall be satisfied by the successful completion of course(s), with credits totaling those required by Section 7 of this Regulation, approved for prelicensing for the particular line of authority by the Division.   
Only successful completion of courses approved by the Division will satisfy the requirements of the Regulation.  
Section 6.	 Course Approval
A.	Prior to being offered or advertised, any prelicensing course must be approved by the Division.  Any change in the course must be approved by the Division prior to being implemented. Any full-time program of prelicensure education operated by a company with a qualified home office located in Colorado will not be required to submit courses for review and certification by the Commissioner. Course approval requests must be accompanied by the following:
1.	Course or program outline showing individual topic(s) to be covered and hours to be satisfied.  A copy of the appropriate course outline should show the page and paragraph where required information is located on submitted course.
2.	Copies of all proposed study materials. Publicly published text or other study materials require submission of the title, edition date, publisher, and authority. The Division may request the text or other materials, as necessary,
3.	Instructor qualifications.  Instructors must meet one or more of the following qualifications:  demonstrated competence in the subject area; a professional insurance designation; or academic qualifications (either by a specific degree or by demonstrated experience in instructing or teaching.
4.	Method of measuring satisfactory completion, and;
5.	The appropriate course fee and the course submittal document. Once approved, a course may be offered for three years without additional notice to the Division of Insurance so long as the course content is not materially changed, except to reflect changes in the insurance laws.
B.	Prelicensing courses may consist either of classroom study or verifiable self study (including online courses).  Evaluation of any proposed course shall be based upon the substance of the course and not its method of delivery.  The manner of verification of a self study course will be taken into account in the approval of said course and the provider should provide the specific method of verification. One of the following methods shall be used in measuring satisfactory completion of a course:
1.	Self Study courses must have a final examination that is monitored by a disinterested third party.  Final examination is a closed book examination taken and passed by a producer without assistance and personally monitored by a disinterested third party, who is not a minor, not related to the producer, his immediate supervisor, or his/her employee.  A score of 70% or above is required for the examinee to pass the examination.
2.	Classroom courses must contain a final examination that is monitored by a qualified instructor from the providing organization.  Final examination is a closed book examination taken and passed by an individual without assistance and personally monitored by a disinterested third party, who is not a minor, not related to the producer, his immediate supervisor, or his/her employee.  A score of 70% or above is required for the examinee to pass the examination.
3.	Passage of a nationally recognized insurance test for a professional designation will be evidence of successful completion.
Section 7.	Course Hour Requirements
With regard to each of the five major lines of authority: (1) life (2) accident & health or sickness (3) property (4) casualty and (5) personal lines, the applicant must successfully complete training in the following areas:

Principles of Insurance*	3 hours	
Legal Concepts and Regulations*	4 hours	
Ethics*	3 hours	
Property Insurance	20 hours	
Casualty Insurance	20 hours	
Life Insurance	40 hours	
Health Insurance	40 hours	
Personal Lines	20 hours	
*For those individuals applying for more than one authority, the 3 hours of Principles of Insurance, the 3 hours of Ethics, and the 4 hours of Legal Concepts and Regulations need only be taken once.

For variable life and/or variable annuity, any person who offers or sells variable annuity or insurance products must also possess a valid sales representative license with the Colorado Securities Division (series 63, 6 or 7 or equivalent (NASD earlier qualifications).  This requirement is in addition to any insurance license authorizing the sale of variable products obtained from the Insurance Division.  The Division does not impose any additional prelicensing requirements for these lines outside of the requirement to obtain a sales representative license from the Securities Division. 
For any other line of authority, please contact the Division for specific prelicensing requirements. 
Section 8	 Certification and Verification
A.	A certificate of completion shall be issued by the approved Course Provider to each person satisfactorily completing the course.  
B. 	The certificate of completion shall contain the student's full name, residential address, name of the approved course, beginning date, date of completion, name of the approved Course Provider, the original or electronic signature of the instructor and any other information that the Division deems necessary.  
C.	The certificate of completion must have been earned prior to sitting for the state license examination.  Proof of course completion must be transmitted electronically to the Division or it’s vendor..  Such electronic transmission will satisfy the applicant’s responsibility to transmit the certificate to the Division. 
Section 9	Period of Validity for Prelicensing Course Certificates
Prelicensing certificates of completion shall be valid for a period of one (1) year from the date of completion.  Prelicensing certificates of completion that are more than one (1) year old will not be accepted by the Division and students will be required to take an approved prelicensing course.  
Section 10	Exemption from Prelicensing Education 
The following persons are exempt from prelicensing education: 
A.	An individual who was previously licensed for the same line(s) of authority in a reciprocal state.  Such individual shall be required to certify knowledge of Colorado law applicable to insurance producers on a form approved by the Division.  This exemption is only available if the person is currently licensed in the other state or if the application is received within ninety (90) days of the cancellation of the applicant’s previous home state license and if the prior home state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state’s producer database records, maintained by the NAIC, it’s affiliates or subsidiaries, indicates that the insurance producer is or was licensed in good standing for the line(s) of authority requested. 
B.	An individual holding a four (4) year degree from an accredited institution of higher learning with major course work in insurance. 
C.	An individual holding a current and valid AAI, ARM, CIC or CPCU designation are exempt from prelicensing education for property and casualty lines of authority. 
D.	An individual holding a current and valid RHU, CEBS, REBC or HIA designation is exempt from prelicensing education for accident & health or sickness line of authority. 
E.	An individual holding a current and valid CEBS, ChFC, CIC, CFP, CLU, FLMI or LUTCF designation is exempt from prelicensing education for life lines of authority. 
F.	Limited line credit insurance license. 
Section 11	Compliance
The Division or its designee may conduct audits of producers, course providers, sponsoring organizations, or qualified instructors to verify that the approved courses are administered as filed with the Division of Insurance and to determine compliance with  § 10-2-203, C.R.S., and this regulation.
Noncompliance with this regulation or the applicable provisions of Title 10 by institutions, instructors, or organizations conducting approved courses may result in termination of course approval.
Section 12	Severability
If any provision of this Regulation or the application thereof to any person or circumstance is for any reason held to be invalid the remainder of the regulation shall not be affected.
Section 13	Further Information And Submittals
Any submittals or questions should be directed to:
Licensing Administrator
Colorado Division of Insurance
1560 Broadway, Suite 850
Denver, Colorado 80202
Phone (303) 894-7499
Section 14	Effective Date
This regulation is effective Febuary 1, 2008.
Section 15	History
Original Regulation 1-2-5, Effective January 1, 1995.
Emergency Regulation 01-E-4, Effective January 1, 2002
Temporary Regulation 02-E-2, Effective April 1, 2002
Amended Regulation 1-2-5, Effective May 1, 2002.
Amended Regulation 1-2-5, Effective March 31, 2007
Amended Regulation 1-2-5, Effective February 1, 2008.