Continuing Education Rules
Guidelines you should know before beginning your CE.
Affordable Educators is pleased to offer easier, approved Self-Directed Continuing Education. These courses function THE SAME AS courses you have taken from us before. Our new self-directed system is now up and running. Call or email us firstname.lastname@example.org if you have any further questions.
The Patriot Act and it’s Reauthorization in 2005 created new rules concerning terrorist money laundering activities. Insurance companies are now obligated to create anti-money laundering policies and agents must be integrated in the program, through training, to assess money laundering risks associated with insurance transactions and identifying potential “red flags.”
The rules apply to Patriot Act “covered” products sold by life insurance agents only. Excluded products include group life, group annuities, term insurance and reinsurance. Casualty agents do not need this training at this time. Non-compliance by your insurer is considered a violation of the Patriot Act and Bank Secrecy Act. Agents are not currently held to the same standard. However, if violations are discovered, the Treasury Department may eventually issue fines and criminal penalties at the agent level AML is NOT a requirement of the State of California, however, you can earn 4 California CE hours.
“Isn’t my insurer supposed to provide this training?”
Some do, but others are relying on the agent’s own program requirements to address issues at the time of the sale if reasonable (as long as the insurer knows of no defect in the agent’s program), while the insurer’s program should focus on the on-going administration of the covered product. Translation: If your insurer does not provide this training, you should. It’s only a 4-hour course and you will receive California CE Credits anyway!
Starting 1/1/07 the California Code requires all Life / Heath Agents and Property / Casualty Broker-Agents to complete three (3) hours of ethics training during their two-year license term. Ethics training is part of, not in addition to, the California resident agent’s current continuing education requirement.
We have several courses that will satisfy your ethics requirement. See Courses 193, 171, 172, 173, 175, 142, 181 (P/C Only), 182, 187, or 222 (NEW!). Some give you as much as 30 hours of CE credit with 3 hours going to meet your ethics requirement…so, it’s like getting two courses in one. Get the hours you need and ethics is included…almost like free ethics!
NOTE: Extra course hours may carry forward (see note below), but you still need “fresh” ethics hours EVERY renewal period, i.e. you can’t take a bunch of extra ethics hours and expect them to meet your ethics requirements for years to come.
SB 620 was signed into law on September 29, 2003. This law requires all agents to complete an 8-Hour training course before selling or soliciting any annuity…Fixed, variable, indexed, etc. This 8-hour requirement is PART OF NOT IN ADDITION TO your other CE requirement hours. Your Certificate of Completion for this course is authorization to begin selling. See Annuity 4-Hour Course below to continue your annuity training.
To keep your Annuity Certification you must complete a 4-hour refresher course every renewal period to continue to sell annuities. If you fail to complete this refresher course when due you will lose your Annuity Certification, however, it will not affect your license status for selling other products.
Example: Sally took the original 8-Hour Annuity Course to earn her Annuity Certification during her last renewal period. Her current renewal requires that she start taking the 4-hour course and continue to do so every renewal period hereafter. She does not need to retake the 8-hour course again.
Section 207 of the Flood Insurance Reform Act of 2004 (FIRA) requires all producers selling flood insurance policies under the National Flood Insurance Program (NFIP) to be properly trained and educated about the NFIP to ensure producers best serve their clients. An insurance producer can satisfy the minimum training and education requirements by completing an approved 3-hour FEMA-compliant course. The failure to comply with this continuing education requirement may jeopardize a producer’s authority to write insurance through the NFIP.
In cooperation with FEMA, the State of California has established flood training requirements and approved our Flood Course #190 (CDI #194147) to meet the required NFIP, 3-hour training requirement.
In addition, you should know that certain carriers have recently mandated that agents update their flood training to be sure they have taken a flood course that includes information on the National Flood Reform Act of 2012 (Our course covers this!)
Section 1749.85 of the California Insurance Code requires all Fire and Casualty and Personal Lines agents to have “specific knowledg in the proper methods of estimating the replacement value of structures…” Agents who negotiate or sell homeowners insurance are requires to take a special three hour Homeowners Insurance Valuation Course in order to understand the elements of home values and make appropriate recommendations to their customers. This is a one-time course requirement that must be completed before you can sell.
Before you can sell Long Term Care Insurance in California, you must have an Accident & Health License and complete an approved 8-Hour Long Term Care Training Course (There are some new “combo” products that feature life / annuity products AND long term care that require life and health licensing). Thereafter, you must take the training again once every license period (every two years). NOTE: A new licensee (in business less than four years) must complete eight hours of LTC Training annually for the first four years he is in the business of selling LTC insurance.
Life, health, property and casualty agents need 24 hours of continuing education every two years. For more details, refer to the information on the left.
• Homeowners Valuation Training
• Anti-Money Laundering