DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF INSURANCE
3 ccr 702-1
PROPOSED Amended regulation 1-2-4
CONTINUING EDUCATION REQUIREMENTS FOR LICENSED INSURANCE PRODUCERS

Section 1	Authority
Section 2	Scope and Purpose
Section 3	Applicability
Section 4	Definitions
Section 5	Rules
Section 6	Severability 
Section 7	Enforcement
Section 8	Effective Date
Section 9	History

Section 1	Authority
This amended regulation is promulgated under the authority of  §§10-1-109, 10-2-104, and 10-2-301(6)(a), Colorado Revised Statutes (C.R.S.).
Section 2	Scope And Purpose
This regulation establishes continuing education requirements for persons licensed to sell certain types of insurance.  Additionally, this regulation establishes the procedures for filing course completion information by the course providers.  
This regulation sets forth:
A.	The basic requirements for such training and the standards for the courses and programs that qualify for approval by the Commissioner;
B.	The procedures and standards that the Commissioner will use in approving the courses;
C.	The required record keeping and procedures for certification of satisfactory completion of the continuing education requirement; and
D.	The sanctions for noncompliance with this regulation. 
Section 3	Applicability
This regulation shall apply to all individuals licensed to act as insurance producers in Colorado, with the exception of those individuals licensed to write only one or more of the following lines: travel ticket selling, bail bonding, title, limited lines credit insurance, and crop hail.  This regulation shall also apply to all providers of continuing insurance education in Colorado.
The requirements of this regulation apply to any Colorado resident licensed to solicit and sell insurance in this state.  Pursuant to §10-2-301(3)(b), C.R.S., this section shall not apply to any person holding a limited or restricted license if that license is in good standing with the Division and no complaints have been filed against the licensee.  
Section 4	Definitions
E.	“Competency 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 and approved by the Division.  A score of 70% or above is required for the examinee to pass the examination.
F.	"Qualified instructor" means a person who has demonstrated competency in the subject matter of an approved course through one of the following means: 
1.	A college degree from an accredited institution of higher learning with a major in insurance; 
2.	A professional designation of CLU or CPCU or similar designation from an industry association; or 
3.	Three or more years practical experience in the subject matter being taught or monitored.  
Qualified instructors shall not have been subject to any order of revocation, suspension or other formal disciplinary action in any state.
G.	"Sponsoring institution/instructor/organization" means the person or entity primarily responsible for conducting the course and maintaining records of successful course completion.
Section 5	Rules
A.	Required Hours/Certification
After the first continuation cycle, every producer who is licensed in Colorado and not otherwise specifically exempted in this regulation shall complete 24 credit hours of approved courses biennially.  At least 18 of the 24 credit hours shall be in approved courses in the authorities for which the producer is licensed.  At least three (3) of the 24 hours of continuing education shall be for courses in ethics.  A maximum of six (6) of the 24 credit hours shall be in approved courses on subjects designated by the Commissioner whenever the Commissioner determines that continuing education in such subjects is needed to protect insurance consumers.  Those individuals licensed as reinsurance intermediary brokers must complete the required continuing education through professional seminars or curriculum within the reinsurance field.  Producers may accumulate no more than twelve (12) carryover credit hours during the one hundred twenty (120) days before the licensing continuation date, which may be applied to the next continuing education period. 
In meeting the requirements, producers must comply with the following:
2.	A producer who successfully completes an approved course may not repeat the course within a 2-year continuation cycle and count it toward the required hours, except for courses dealing with statutory updates.
C.	Approved Courses
1.	Guidelines for Course Approval
In determining which insurance courses qualify for approval, the Commissioner will consider such factors as:
a.	Course Content: Approved courses may include information on specific insurance products approved for sale in Colorado, relevant state or national laws, insurance taxation, insurance practices, ethics, and claims/underwriting procedures.  Approved courses must be insurance related and will not include courses or portions of courses on personal enrichment, sales training or sales information.
b.	Qualifications of the Instructor:  A qualified instructor must teach the approved courses and/or examinations.
c.	Location:  Both "in-classroom" and "self-study" including computer-based courses will be considered for approval.  A self-study or computer-based course must be an Division approved course followed by a monitored competency examination administered by a disinterested third party who is neither a minor, relative, the immediate supervisor nor the employee of the producer or anyone who has an economic or other interest in assuring the successful outcome of the examination.  Designation of this third party is the responsibility of the course provider.  The disinterested third-party must provide an affidavit attesting under oath or affirmation that the paper or electronic course examination was proctored, that the examination was provided in a manner specified by the Sponsoring institution/instructor/organization, and that they are not part of or aware of any efforts to circumvent the requirements of the examination and no attendee was permitted to use study materials or have assistance during the exam.  Affidavit’s must be submitted the date of the examination and should be received by the sponsoring organization within 15 business days.  Sponsoring organizations must clearly identify the time frame and provide the affidavit form, prior to testing.  The test completion date is the date the individual took and successfully passed the examination, providing the affidavit is received by sponsoring organization within 15 business days and the sponsoring organization was paid.  Self-study hours may include textbook study, video study, and other electronic means of communication.
Accreditation:  Courses which are provided by accredited institutions of higher education or which lead to nationally recognized professional insurance and insurance related designations shall be considered for automatic qualification based upon relevancy of content.  But, an application must be filed with the Division of Insurance and a course number assigned.  A qualified instructor must also be established.
2.	Application for Course Approval by Institutions/Instructors/ Organizations
a.	Courses shall be presented to the Commissioner for approval at least sixty (60) days in advance of the date on which the course is to be held.  Any program of continuing education that is operated by a company with a qualified home office located in Colorado is not subject to course review and approval by the Commissioner as long as it does not contain information related to personal enrichment, sales training or sales information and the company will be required to obtain a course number and number of credit hours for the course.
b.	Applications shall be filed on a form prescribed by the Commissioner and shall include the following:
(i)	An outline of the course;
(ii)	A copy of the table of contents of textbooks used;
(iii)	A sample competency examination, for self study/computer-based courses;
(iv)	A non-refundable filing fee in the amount of $20.00 for each course, except for insurers paying one or more of the fees prescribed under §10-3-207, C.R.S.;
(v)	The number of hours proposed for the course;
(vi)	The qualifications of the instructor(s); 
(vii)	The date of course initiation if known; 
A postage paid, self-addressed envelope:
(ix)	Self study courses must include the number of pages in the book.  Online courses must include a screen count, with extra minutes given if video(s) are included. Applications for self-study courses must include the number of pages in the book, excluding glossaries, indexes, tables of contents, and appendices. For Internet courses, a screen count is also required. If the required materials or information is not included, the course may be disapproved.
The following subjects/topics may not qualify: • Any course used to prepare for taking an insurance license exam; • Computer science and automation courses; • Motivational, sales training, or psychology courses; • Communication, relationship building; • Prospecting, marketing, planning; • Courses which are primarily intended to impart knowledge of office procedures, administrative matters, personnel issues; • Service standards; • Investment and other courses which do not show a direct connection to insurance; • Time management; • Courses on compliance (NASD/SEC); • Service vendors;
(x)_	In addition to our standard approval requirements, as outlined herein webcast/video conferences must have a qualified instructor present to answer questions and take attendance.
Section 6	Severability
If any provision of this regulation or its application to any person or circumstance is for any reason held to be invalid, the remainder of this regulation shall not be affected.
Section 7	Enforcement
Noncompliance with the Regulation may result, after proper notice and hearing, in the imposition of any of the sanctions made available in the Colorado statutes pertaining to the business of insurance or other laws which include the imposition of fines, issuance of cease and desist orders, and/or suspensions or revocation of license.  Among others, the penalties provided for in §10-3-1108, C.R.S., may be applied.
Section 8	Effective Date
This regulation is effective January 1, 2007.
Section 9	History
New November 2, 1992; Effective January 1, 1993.
Amended October 15, 1994; Effective January 1, 1995: Sections amended 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, and 12.
Amended April 3, 1998; Effective June 2, 1998. Sections added: 6.  Sections amended: 1, 2, 3, 4, 5, 7, 8, 10, and 13.
Amended November 1, 2000.  Effective January 1, 2001.  Sections amended 2, 5, and 7.  Section 10 deleted.  Subsequent sections renumbered.Emergency Regulation effective January 1, 2002.  Sections amended 1, 2, 3, 4, 5, 6, 7, 8, 12, and 13.
Amended Regulation effective April 1, 2002.  Sections amended 1, 2, 3, 4, 5, 6, 7, 8, 12, and 13.
Amended Regulation effective February 1, 2003.  Sections Amended 1, 3, 5, 8, 12 and 13.
Amended Regulation effective September 30, 2004.  Sections Amended 2 and 5.
Amended Regulation effective February 1, 2005.  Sections 5, 7,10 and 12.
Amended Regulation effective January 1, 2006.  Sections 5.b., 7.B., 12, and 13.
Amended Regulation effective January 1, 2007.  Sections 4E, 5A(2), 5C1(a), 5C1(c), 5C2(b)(iii), 5C2(b)(viii), 5C2(b)(ix), 5C2(b)(x), and 8.