Bill Summary – FastDemocracy

Legislative Analysis
                                                                            Phone: (517) 373-8080
CONTINUING EDUCATION CREDIT FOR MEMBERSHIP
                                                                            http://www.house.mi.gov/hfa
IN PROFESSIONAL INSURANCE ASSOCIATION
                                                                            Analysis available at
Senate Bill 378 (S-1) as passed by the Senate                               http://www.legislature.mi.gov
Sponsor: Sen. Sam Singh
House Committee: Insurance and Financial Services
Senate Committee: Finance, Insurance, and Consumer Protection
Complete to 12-4-24
SUMMARY:
       Senate Bill 378 would amend the Insurance Code to allow an insurance producer (i.e., an
       insurance agent) who is an active member of a professional insurance association to be credited
       with four hours toward continuing education requirements on the basis of that membership if
       certain conditions are met.
       Under the code, every two years, an insurance producer who wishes to renew a license must
       attend or instruct at least 24 hours of continuing education classes approved by the director of
       the Department of Insurance and Financial Services (DIFS) or complete 24 hours of home
       study or online training as long as there is evidence of successful completion of coursework
       approved by the director. At least three hours of the continuing education requirement must be
       in classes or coursework in ethics in insurance. An insurance producer’s hours of study accrued
       are reviewed for license continuance every two years under a schedule established by the
       director.
       Under the bill, for a review date on or after December 31, 2024, of an applicable two-year
       period, an insurance producer who is an active member of a local, regional, state, or national
       professional insurance association that has a course that the director of DIFS determines
       increases knowledge of insurance and related subjects could be credited up four hours toward
       the required 24 hours of continuing education if all of the following conditions are met:
           • The producer is a dues-paying member of the association.
           • The producer is in good standing with the association.
           • The producer actively participates in the functions of a local, regional, state, or national
               professional association, at a minimum, of the number of association credits earned.
               For each credit hour earned, the association would have to provide for at least 50
               minutes of participation. Active participation would be achieved by any of the
               following activities:
                   o Attending a formal meeting or formal business meeting hosted by the
                       association, where attendance is verified.
                   o Serving on and actively participating in the local, regional, state, or national
                       board or committee in affiliation with the association.
                   o Participating in industry, regulatory, or legislative meetings held by or on
                       behalf of the association.
           • Upon request of the insurance producer, the association provides the DIFS director
               with a statement confirming that the producer actively participated in the association.
House Fiscal Agency                                                                           Page 1 of 2
       However, any hours credited would not count toward the required three hours of classes or
       coursework in ethics in insurance.
        The director could approve a professional insurance association as a continuing education
        provider under the bill only upon determining both of the following:
           • The association was formed for purposes other than providing continuing education.
           • The association has provided the director with its articles of incorporation on file with
               the Department of Licensing and Regulatory Affairs.
       A professional insurance association approved as a continuing education provider under the
       bill would have to do all of the following:
            • Receive approval as a continuing education prover before offering association
               membership credit.
            • Determine participation in a meeting, program, or affiliation qualified for association
               credit.
            • File with the director a certificate of successful completion, which would be certifying
               all of the following:
                    o That the insurance producer maintains an active membership, in good standing,
                        in the association and is a dues-paying member.
                    o That the activity or program took place while the association was authorized to
                        offer association member credit.
                    o That the producer actively participated in the association as described above.
       In addition, for a review date after December 31, 2023, any activity by an insurance producer,
       as determined by the DIFS director, could be credited as an hour toward the required 24 hours
       of continuing education.
       MCL 500.1204c
FISCAL IMPACT:
       Senate Bill 378 would have no fiscal impact on any units of state or local government.
                                                          Legislative Analyst: Alex Stegbauer
                                                               Fiscal Analyst: Una Jakupovic
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency                                      SB 378 (S-1) as passed by the Senate   Page 2 of 2
Statutes affected: 
Substitute (S-1): 500.1204
Senate Introduced Bill: 500.1204
As Passed by the Senate: 500.1204