ENROLLED HOUSE
BILL NO. 1243	By:	McDaniel (Randy) of the House  

				and

		Brown of the Senate  

An Act relating to licenses issued by the Insurance Department; stating legislative intent; amending 36 O.S. 2001, Sections 1435.6, as last amended by Section 24, Chapter 176, O.S.L. 2009, 1435.7, as last amended by Section 25, Chapter 176, O.S.L. 2009, 1435.8, as last amended by Section 26, Chapter 176, O.S.L. 2009, 1435.23, as last amended by Section 12, Chapter 432, O.S.L. 2009 and 1435.29, as last amended by Section 13, Chapter 432, O.S.L. 2009 (36 O.S. Supp. 2010, Sections 1435.6, 1435.7, 1435.8, 1435.23 and 1435.29), which relate to the Oklahoma Producer Licensing Act; modifying reexamination requirements; modifying insurance producer license application requirements; modifying certain license reinstatement requirements; removing certain provisional license fee; modifying educational requirements; amending 36 O.S. 2001, Sections 6208, as last amended by Section 44, Chapter 176, O.S.L. 2009, 6209, as amended by Section 45, Chapter 176, O.S.L. 2009, 6210, as last amended by Section 46, Chapter 176, O.S.L. 2009 and 6217, as last amended by Section 2, Chapter 355, O.S.L. 2010 (36 O.S. Supp. 2010, Sections 6208, 6209, 6210 and 6217), which relate to the Insurance Adjusters Licensing Act; modifying certain exemption from adjuster examination requirements; modifying classes of business covered by insurance adjuster licenses; modifying reexamination requirements; modifying certain continuing education requirements; amending 59 O.S. 2001, Sections 1304, 1305, as last amended by Section 55, Chapter 222, O.S.L. 2010, 1308, 1308.1, 1309 and 1314, as last amended by Section 58, Chapter 222, O.S.L. 2010 (59 O.S. Supp. 2010, Sections 1305 and 1314), which relate to bail bondsmen; making licenses of bail bondsmen expire biennially; specifying expiration date of biennial licenses; requiring applications for a bail bondsman license to be submitted electronically; modifying certain bail bondsman examination requirements; modifying certain fees and certain continuing education requirements to reflect change from annual to biennial license; prohibiting certain actions by certain bail bondsmen; requiring certain fee to be prorated; allowing license to be reinstated under certain conditions; requiring licensed bondsman to file certain reports electronically; prohibiting certain actions by certain bail bondsmen; requiring certain reports to be submitted electronically; eliminating reporting by mail; repealing Section 11, Chapter 125, O.S.L. 2007 (36 O.S. Supp. 2010, Section 1435.7A), which relates to resident provisional insurance producer licenses; providing for codification; providing for noncodification; providing an effective date; and declaring an emergency.

SUBJECT:  Insurance

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

SECTION 1.     NEW LAW     A new section of law not to be codified in the Oklahoma Statutes reads as follows:

The Oklahoma Legislature recognizes that the Insurance Department of the State of Oklahoma is charged with regulating a variety of entities.  Each of these entities is a part of the financial services industry in some way.  It is the intent of this bill to modify the law as it relates to entities regulated by the Insurance Department.

SECTION 2.     AMENDATORY     36 O.S. 2001, Section 1435.6, as last amended by Section 24, Chapter 176, O.S.L. 2009 (36 O.S. Supp. 2010, Section 1435.6), is amended to read as follows:

Section 1435.6  A.  A resident individual applying for an insurance producer license shall pass a written examination unless exempt pursuant to Section 1435.10 of this title.  The examination shall test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer and the insurance laws and regulations of this state.  Examinations required by this section shall be developed and conducted under rules and regulations prescribed by the Insurance Commissioner.

B.  The Commissioner may make arrangements, including contracting with an outside testing service, for administering examinations and collecting the nonrefundable fee set forth in Section 1435.23 of this title.

C.  Each individual applying for an examination shall remit a nonrefundable fee as prescribed by the Insurance Commissioner as set forth in Section 1435.23 of this title.

D.  After completion and filing of the application with the Insurance Commissioner, except as provided in Section 1435.10 of this title, the Commissioner shall subject each applicant for license as an insurance agent, insurance consultant, limited insurance representative, or customer service representative to an examination approved by the Commissioner as to competence to act as a licensee, which each applicant shall personally take and pass to the satisfaction of the Commissioner.  The Commissioner may accept examinations administered by a testing service as satisfying the examination requirements of persons seeking license as agents, solicitors, counselors, or adjusters under the Oklahoma Insurance Code.  The Commissioner may negotiate agreements with such testing services to include performance of examination development, test scheduling, examination site arrangements, test administration, grading, reporting, and analysis.  The Commissioner may require such testing services to correspond directly with the applicants with regard to the administration of such examinations and that such testing services collect fees for administering such examinations directly from the applicants.  The Commissioner may stipulate that any agreements with such testing services provide for the administration of examinations in specific locales and at specified frequencies.  The Commissioner shall retain the authority to establish the scope and type of all examinations.

E.  If the applicant is a legal entity, the examination shall be taken by each individual who is to act for the entity as a licensee.
F.  Each examination for a license shall be approved for use by the Commissioner and shall reasonably test the knowledge of the applicant as to the lines of insurance, policies, and transactions to be handled pursuant to the license applied for, the duties and responsibilities of the licensee, and the pertinent insurance laws of this state.

G.  Examination for licensing shall be at such reasonable times and places as are designated by the Commissioner.

H.  The Commissioner or testing service shall give, conduct, and grade all examinations in a fair and impartial manner and without discrimination among individuals examined.

I.  The applicant shall pass the examination with a grade determined by the Commissioner to indicate satisfactory knowledge and understanding of the line or lines of insurance for which the applicant seeks qualification.  Within ten (10) days after the examination, the Commissioner shall inform the applicant and the appointing insurer, when applicable, as to whether or not the applicant has passed.  Formal evidence of licensing shall be issued by the Commissioner to the licensee within a reasonable time.

J.  An applicant who has failed to pass the first examination for the license applied for may take a second examination within thirty (30) days following the first examination.  Examination fees for subsequent examinations shall not be waived.

K.  An applicant who has failed to pass the first two examinations for the license applied for shall not be permitted to take a subsequent examination until the expiration of thirty (30) days after the last previous examination.  An applicant shall take and pass the examination within one hundred eighty (180) days of the date of the initial application.  If applicant fails to pass the examination within the specified time period, the applicant shall submit a new application accompanied by any applicable fees.  Examination fees for subsequent examinations shall not be waived.

L.  An applicant for a license as a resident surplus lines broker shall have passed the property and casualty insurance examination on the line or lines of insurance to be written to qualify for a surplus lines broker license.

SECTION 3.     AMENDATORY     36 O.S. 2001, Section 1435.7, as last amended by Section 25, Chapter 176, O.S.L. 2009 (36 O.S. Supp. 2010, Section 1435.7), is amended to read as follows:

Section 1435.7  A.  A person applying for a resident insurance producer license shall make application to the Insurance Commissioner on the Uniform Application or an application approved by the Commissioner and declare under penalty of refusal, suspension or revocation of the license that the statements made in the application are true, correct and complete to the best of the individual's knowledge and belief.  Before approving the application, the Insurance Commissioner shall find that the individual:

1.  Is at least eighteen (18) years of age;

2.  Has not committed any act that is a ground for denial, suspension or revocation set forth in Section 1435.13 of this title;

3.  Has held a provisional insurance producer license or has been a participant in an approved training program offered by an insurance company licensed in this state except for title, aircraft title, or any other producer applicant exempt by rule;

4.  Has paid the fees set forth in Section 1435.23 of this title; and

5. 4.  Has successfully passed the examinations for the lines of authority for which the person has applied.

B.  A business entity acting as an insurance producer is required to obtain an insurance producer license.  Application shall be made using the Uniform Business Entity Application or an application approved by the Commissioner.  Before approving the application, the Insurance Commissioner shall find that:

1.  The business entity has paid the fees set forth in Section 1435.23 of this title;

2.  The business entity has designated a licensed producer responsible for the business entity's compliance with the insurance laws, rules and regulations of this state;

3.  A domestic business entity is organized pursuant to the provisions of the laws of this state and maintains its principal place of business in this state; and

4.  No person whose license as an insurance producer has been revoked by order of the Commissioner, nor any business entity in which such person has a majority ownership interest, whether direct or indirect, owns any interest in the business entity licensed as an insurance producer.

C.  An applicant for any license required by the provisions of the Oklahoma Producer Licensing Act shall demonstrate to the Insurance Commissioner that the applicant is competent, trustworthy, financially responsible, and of good personal and business reputation.

D.  The Insurance Commissioner may require any documents reasonably necessary to verify the information contained in an application.

SECTION 4.     AMENDATORY     36 O.S. 2001, Section 1435.8, as last amended by Section 26, Chapter 176, O.S.L. 2009 (36 O.S. Supp. 2010, Section 1435.8), is amended to read as follows:

Section 1435.8  A.  Unless denied licensure pursuant to Section 1435.13 of this title, persons who have met the requirements of Sections 1435.6 and 1435.7 of this title shall be issued an insurance producer license.  An insurance producer may receive qualification for a license in one or more of the following lines of authority:

1.  Life - insurance coverage on human lives including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income;

2.  Accident and health or sickness - insurance coverage for sickness, bodily injury or accidental death and may include benefits for disability income;

3.  Property - insurance coverage for the direct or consequential loss or damage to property of every kind;

4.  Casualty - insurance coverage against legal liability, including that for death, injury or disability or damage to real or personal property;

5.  Variable life and variable annuity products - insurance coverage provided under variable life insurance contracts and variable annuities;

6.  Personal lines - property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes;

7.  Commercial lines – property and casualty insurance coverage sold to businesses for primarily commercial purposes;

8.  Credit - limited line credit insurance;

9.  Title insurance – insurance coverage that insures or guarantees the title to real or personal property or any interest therein or encumbrance thereon;

10.  Aircraft title insurance – insurance coverage that protects an aircraft owner or lender against loss of the aircraft or priority security position in the event of a successful adverse claim on the title to an aircraft; and

11.  Any other line of insurance permitted under state laws or regulations.

B.  An insurance producer license shall remain in effect unless revoked or suspended as long as the fee set forth in Section 1435.23 of this title is paid and education requirements for resident individual producers are met by the due date.

C.  An individual insurance producer who allows the license to lapse may, within twenty-four (24) twelve (12) months from the due date of the renewal fee, reinstate the same license without the necessity of passing a written examination unless the license was revoked, suspended, or continuation thereof was refused by the Commissioner.  However, a penalty in the amount of double the unpaid renewal fee shall be required for any renewal fee received after the due date.  Continuing education requirements must be kept current.

D.  A licensed insurance producer who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance, such as a long-term medical disability, may request a waiver of those procedures.  The producer may also request a waiver of any examination requirement or any other fine or sanction imposed for failure to comply with renewal procedures.

E.  The license shall contain the licensee's name, address, personal identification number, and the date of issuance, the lines of authority, the expiration date and any other information the Insurance Commissioner deems necessary.

F.  Licensees shall inform the Insurance Commissioner by any means acceptable to the Insurance Commissioner of a change of legal name or, address, or e-mail address within thirty (30) days of the change to permit the Insurance Commissioner to give proper notice to licensees.  A change in legal name or address submitted more than thirty (30) days after the change must include an administrative fee of Fifty Dollars ($50.00).  Failure to provide acceptable notification of a change of legal name or address to the Insurance Commissioner within forty-five (45) days of the date the administrative fee is assessed will shall result in penalties pursuant to Section 1435.13 of this title.

G.  In order to assist in the performance of the Insurance Commissioner's duties, the Insurance Commissioner may contract with nongovernmental entities, including the National Association of Insurance Commissioners (NAIC) or any affiliates or subsidiaries that the NAIC oversees, to perform any ministerial functions, including the collection of fees, related to producer licensing that the Insurance Commissioner and the nongovernmental entity may deem appropriate.

H.  The Commissioner may participate, in whole or in part, with the National Association of Insurance Commissioners, or any affiliates or subsidiaries the National Association of Insurance Commissioners oversees, in a centralized producer license registry where insurance producer licenses and appointments may be centrally or simultaneously effected for all states that require an insurance producer license and participate in such centralized producer license registry.  If the Commissioner finds that participation in such a centralized producer license registry is in the public interest, the Commissioner may adopt by rule any uniform standards or procedures as are necessary to participate in the registry.  This includes the central collection of all fees for licenses or appointments that are processed through the registry.

SECTION 5.     AMENDATORY     36 O.S. 2001, Section 1435.23, as last amended by Section 12, Chapter 432, O.S.L. 2009 (36 O.S. Supp. 2010, Section 1435.23), is amended to read as follows:

Section 1435.23  A.  All applications shall be accompanied by the applicable fees.  An appointment may be deemed by the Commissioner to have terminated upon failure by the insurer to pay the prescribed renewal fee.  The Commissioner may also by order impose a civil penalty equal to double the amount of the unpaid renewal fee.

The Insurance Commissioner shall collect in advance the following fees and licenses:

1.	For filing appointment of Insurance Commissioner as agent for service of process	$ 20.00

2.	Miscellaneous:

a.	Certificate and Clearance of Commissioner	$  3.00

b.	Insurance producer’s study manual:

Life, Accident & Health	not to exceed
		$ 40.00

Property and Casualty	not to exceed
		$ 40.00

c.	For filing organizational documents of an entity applying for a license as an insurance producer	$ 20.00

3.	Examination for license:

For each examination covering laws and one or more lines of insurance	not to exceed
		$100.00

4.	Licenses:

a.	Insurance producer’s biennial license, regardless of number of companies represented	$ 60.00

b.	Insurance producer’s biennial license for sale or solicitation of separate accounts or agreements, as provided for in Section 6061 of this title	$ 60.00

c.	Limited lines producer biennial license	$ 40.00

d.	Temporary license as agent	$ 20.00

e.	Managing general agent's biennial license	$ 60.00

f.	Surplus lines broker's biennial license	$100.00

g.	Insurance vending machine, each machine, biennial fee	$100.00

h.	Insurance consultant's biennial license, resident or nonresident	$100.00

i.	Customer service representative biennial license	$ 40.00

j.	Insurance producer’s provisional license	$ 20.00

5.	Biennial fee for each appointed insurance producer, managing general agent, or limited lines producer by insurer, each license of each insurance producer or representative	$55.00

6.  Renewal fee for all licenses shall be the same as the current initial license fee.

7.  The fee for a duplicate license shall be one-half (1/2) the fee of an original license.

8.  The renewal of a license shall require a fee of double the current original license fee if the application for renewal is late, or incomplete on the renewal deadline.

9.  The administrative fee for submission of a change of legal name or address more than thirty (30) days after the change occurred shall be Fifty Dollars ($50.00).

B.  If for any reason an insurance producer license or appointment is not issued or renewed by the Commissioner, all fees accompanying the appointment or application for the license shall be deemed earned and shall not be refundable except as provided in Section 352 of this title.

C.  The Insurance Commissioner, by order, may waive licensing fees in extraordinary circumstances for a class of producers where the Commissioner deems that the public interest will be best served.

SECTION 6.     AMENDATORY     36 O.S. 2001, Section 1435.29, as last amended by Section 13, Chapter 432, O.S.L. 2009 (36 O.S. Supp. 2010, Section 1435.29), is amended to read as follows:

Section 1435.29  A.  1.  Each insurance producer, with the exception of title producers and aircraft title producers or any other producer exempt by rule, shall, biennially, complete not less than twenty-one (21) clock hours of continuing insurance education which shall cover subjects in the lines for which the insurance producer is licensed.  Such education may include a written or oral examination.

2.  Each customer service representative shall, biennially, complete not less than ten (10) clock hours of continuing insurance education which shall cover subjects in the lines for which the licensee is authorized to conduct insurance-related business on behalf of the appointing agent, broker, or agency.

3.  Licensees, with the exception of title producers and aircraft title producers or any other producer exempt by rule, shall complete, in addition to the foregoing, three (3) clock hours of ethics course work in this same period.

4.  Each title producer and aircraft title producer shall, biennially, complete not less than sixteen (16) clock hours of continuing insurance education, two (2) hours of which shall be ethics course work, which shall cover the line for which the producer is licensed.  Such education may include a written or oral examination.

B.  1.  The Insurance Commissioner shall approve courses and providers of resident provisional producer prelicensing education and continuing education.  The Insurance Department may use one or more of the following to review and provide a nonbinding recommendation to the Insurance Commissioner on approval or disapproval of courses and providers of resident provisional producer prelicensing education and continuing education:

a.	employees of the Insurance Commissioner,

b.	a continuing education advisory committee, or

c.	an independent service whose normal business activities include the review and approval of continuing education courses and providers.  The Commissioner may negotiate agreements with such independent service to review documents and other materials submitted for approval of courses and providers and provide the Commissioner with its nonbinding recommendation.  The Commissioner may require such independent service to collect the fee charged by the independent service for reviewing materials provided for review directly from the course providers.

The Insurance Commissioner has sole authority to approve courses and providers of resident provisional producer prelicensing education and continuing education.  If the Insurance Commissioner uses one of the entities listed above to provide a nonbinding recommendation, the Commissioner shall adopt or decline to adopt the recommendation within thirty (30) days of receipt of the recommendation.  In the event the Insurance Commissioner takes no action within said thirty-day period, the recommendation made to the Commissioner will be deemed to have been adopted by the Commissioner.

The Insurance Commissioner may certify providers and courses offered for license examination study.  The Insurance Department shall use employees of the Insurance Commissioner to review and certify license examination study program providers and courses.

2.  Each insurance company shall be allowed to provide continuing education to insurance producers and customer service representatives as required by this section; provided that such continuing education meets the general standards for education otherwise established by the Insurance Commissioner.

3.  An insurance producer who, during the time period prior to renewal, participates in an approved professional designation program shall be deemed to have met the biennial requirement for continuing education.

Each course in the curriculum for the program shall total a minimum of twenty-four (24) hours.  Each approved professional designation program included in this section shall be reviewed for quality and compliance every three (3) years in accordance with standardized criteria promulgated by rule.  Continuation of approved status is contingent upon the findings of the review.  The list of professional designation programs approved under this paragraph shall be made available to producers and providers annually.

4.  The Insurance Department may promulgate rules providing that courses or programs offered by professional associations shall qualify for presumptive continuing education credit approval.  The rules shall include standardized criteria for reviewing the professional associations’ mission, membership, and other relevant information, and shall provide a procedure for the Department to disallow all or part of a presumptively approved course.  Professional association courses approved in accordance with this paragraph shall be reviewed every three (3) years to determine whether they continue to qualify for continuing education credit.

5.  Subject to approval by the Commissioner, the active membership of the licensed producer or broker in local, regional, state, or national professional insurance organizations or associations may be approved for up to one (1) annual hour of instruction.  The hour shall be credited upon timely filing with the Commissioner, or designee of the Commissioner, and appropriate written evidence acceptable to the Commissioner of such active membership in the organization or association.

6.  The active service of a licensed producer as a member of a continuing education advisory committee, as described in paragraph 1 of this subsection, shall be deemed to qualify for continuing education credit on an hour-for-hour basis.

C.  Annual fees and course submission fees shall be set forth as a rule by the Commissioner.  The fees are payable to the Insurance Commissioner.  Provided, public-funded educational institutions, federal agencies, nonprofit organizations, not-for-profit organizations, and Oklahoma state agencies shall be exempt from this subsection.

D.  Failure of an insurance producer or customer service representative to comply with the requirements of the Oklahoma Producer Licensing Act may, after notice and opportunity for hearing, result in censure, suspension, nonrenewal of license or a civil penalty of up to Five Hundred Dollars ($500.00) or by both such penalty and civil penalty.  Said civil penalty may be enforced in the same manner in which civil judgments may be enforced.

E.  Limited lines producers and nonresident agents who have successfully completed an equivalent or greater requirement shall be exempt from the provisions of this section.

F.  Members of the Legislature shall be exempt from this section.

G.  The Commissioner shall adopt and promulgate such rules as are necessary for effective administration of this section.

SECTION 7.     AMENDATORY     36 O.S. 2001, Section 6208, as last amended by Section 44, Chapter 176, O.S.L. 2009 (36 O.S. Supp. 2010, Section 6208), is amended to read as follows:

Section 6208.  A.  Each applicant for a license as an adjuster shall, prior to issuance of said license, personally take and pass, to the satisfaction of the Commissioner, an examination approved by the Commissioner as a test of the qualifications and competency of the applicant.

B.  The requirement of an examination shall not apply to the following:

1.  An applicant who is licensed as an adjuster in this state during the ninety‑day period preceding November 1, 1983; or

2.  A nonresident applicant who has passed an examination in the home state of the applicant and who is currently licensed and in good standing in the applicant’s home state; or

3.  Any applicant for a license covering the same class or classes of insurance for which the applicant was licensed in this state pursuant to a similar license during the twenty‑four‑month twelve-month period immediately preceding the date of application, unless said previous license was revoked or suspended, or continuation of the license was refused by the Commissioner; or

4.  An applicant for a resident license who has passed an examination in the former home state and who is licensed and in good standing in the former home state at the time the application is submitted.  The applicant shall make application to become a resident adjuster within ninety (90) days after establishing legal residence in Oklahoma.

SECTION 8.     AMENDATORY     36 O.S. 2001, Section 6209, as amended by Section 45, Chapter 176, O.S.L. 2009 (36 O.S. Supp. 2010, Section 6209), is amended to read as follows:

Section 6209.  A.  Each examination for a license as an adjuster shall be prescribed by the Commissioner and shall be of sufficient scope to reasonably test the knowledge of the applicant as to the kinds of insurance contracts which may be dealt with in accordance with the license applied for, the duties and responsibilities of insurers pursuant to said contracts and pursuant to the laws of this state applicable to the adjusting claims of losses in accordance with the license applied for.

B.  An applicant for a license as an adjuster may qualify in any one of the following classes of insurance or combinations thereof, and the license when issued may be limited to cover adjusting in any one of the following classes of insurance or combinations thereof.  The application for a license shall specify which of the following classes of business the application and license are to cover:

1.  motor vehicle physical damage, meaning Property, including but not limited to marine, inland marine, aircraft and damages to all land motor vehicles and trailers whether or not covered by first party physical damage coverages or property damage liability coverages; or

2.  fire and allied lines, including marine, inland marine, and aircraft; or

3.  casualty Casualty, meaning all lines of liability insurance coverages for bodily injuries, personal injury, and property damages; or

4.  workers' 3.  Workers’ compensation; or

5.  crime 4.  Crime and fidelity bonds; or

6.  crop/hail 5.  Crop/hail; or
6.  Multi-peril crop.

C.  The Commissioner shall prepare and make available to applicants a manual of instructions stating in general terms the subjects which may be covered in any examination for a license as an adjuster.  The Commissioner may charge a reasonable amount not to exceed Forty Dollars ($40.00) for the study manual.

SECTION 9.     AMENDATORY     36 O.S. 2001, Section 6210, as last amended by Section 46, Chapter 176, O.S.L. 2009 (36 O.S. Supp. 2010, Section 6210), is amended to read as follows:

Section 6210.  A.  The answers of the applicant to any examination for licensing as an adjuster shall be written by the applicant under supervision of the Insurance Commissioner or an administrator approved by the Insurance Commissioner.

B.   Examination for licensing shall be at such reasonable times and places as are designated by the Insurance Commissioner.

C.  An applicant who has failed to pass the first examination two examinations for the license for which applied may take a second examination within for shall not be permitted to take a subsequent examination until the expiration of thirty (30) days following the first after the last examination.  An applicant who has failed to pass the first two examinations for the license for which applied shall not be permitted to take a subsequent examination until the expiration of thirty (30) days after the last previous examination.  An applicant shall take and pass the examination within one hundred eighty (180) days of the date of the initial application.  If the applicant fails to pass an examination within the specified time period, the applicant shall submit a new application accompanied by any applicable fees.  Examination fees for subsequent examinations shall not be waived.

SECTION 10.     AMENDATORY     36 O.S. 2001, Section 6217, as last amended by Section 2, Chapter 355, O.S.L. 2010 (36 O.S. Supp. 2010, Section 6217), is amended to read as follows:

Section 6217.  A.  All licenses issued pursuant to the provisions of the Insurance Adjusters Licensing Act shall continue in force not longer than twenty-four (24) months.  The renewal dates for the licenses may be staggered throughout the year by notifying licensees in writing of the expiration and renewal date being assigned to the licensees by the Insurance Commissioner and by making appropriate adjustments in the biennial licensing fee.

B.  Any licensee applying for renewal of a license as an adjuster shall have completed not less than twenty-four (24) clock hours of continuing insurance education, of which three (3) hours must shall be in ethics, within the previous twenty-four (24) months prior to renewal of the license.  Such continuing education shall cover subjects in the classes of insurance for which the adjuster is licensed.  The Insurance Commissioner shall approve courses and providers of continuing education for insurance adjusters as required by this section.

The Insurance Department may use one or more of the following to review and provide a nonbinding recommendation to the Insurance Commissioner on approval or disapproval of courses and providers of continuing education:

1.  Employees of the Insurance Commissioner;

2.  A continuing education advisory committee.  The continuing education advisory committee is separate and distinct from the Advisory Board established by Section 6221 of this title;

3.  An independent service whose normal business activities include the review and approval of continuing education courses and providers.  The Commissioner may negotiate agreements with such independent service to review documents and other materials submitted for approval of courses and providers and present the Commissioner with its nonbinding recommendation.  The Commissioner may require such independent service to collect the fee charged by the independent service for reviewing materials provided for review directly from the course providers.

C.  An adjuster who, during the time period prior to renewal, participates in an approved professional designation program shall be deemed to have met the biennial requirement for continuing education.  Each course in the curriculum for the program shall total a minimum of twenty (20) hours.  Each approved professional designation program included in this section shall be reviewed for quality and compliance every three (3) years in accordance with standardized criteria promulgated by rule.  Continuation of approved status is contingent upon the findings of the review.  The list of professional designation programs approved under this subsection shall be made available to producers and providers annually.
D.  A claims adjuster for any insurer duly authorized to transact workers’ compensation insurance shall complete six (6) hours of continuing education relating to the Workers’ Compensation Act as part of the twenty-four (24) clock hours of continuing insurance education.

E.  The Insurance Department may promulgate rules providing that courses or programs offered by professional associations shall qualify for presumptive continuing education credit approval.  The rules shall include standardized criteria for reviewing the professional associations’ mission, membership, and other relevant information, and shall provide a procedure for the Department to disallow a presumptively approved course.  Professional association courses approved in accordance with this subsection shall be reviewed every three (3) years to determine whether they continue to qualify for continuing education credit.

F.  The active service of a licensed adjuster as a member of a continuing education advisory committee, as described in paragraph 2 of subsection B of this section, shall be deemed to qualify for continuing education credit on an hour-for-hour basis.

G.  Each provider of continuing education shall, after approval by the Commissioner, submit an annual fee.  A fee may be assessed for each course submission at the time it is first submitted for review and upon submission for renewal at expiration.  Annual fees and course submission fees shall be set forth as a rule by the Commissioner.  The fees are payable to the Insurance Commissioner and shall be deposited in the State Insurance Commissioner Revolving Fund, created in subsection C of Section 1435.23 of this title, for the purposes of fulfilling and accomplishing the conditions and purposes of the Oklahoma Producer Licensing Act and the Insurance Adjusters Licensing Act.  Public-funded educational institutions, federal agencies, nonprofit organizations, not-for-profit organizations and Oklahoma state agencies shall be exempt from this subsection.

H.  Subject to the right of the Commissioner to suspend, revoke, or refuse to renew a license of an adjuster, any such license may be renewed by filing on the form prescribed by the Commissioner on or before the expiration date a written request by or on behalf of the licensee for such renewal and proof of completion of the continuing education requirement set forth in subsection B of this section, accompanied by payment of the renewal fee.

I.  If the request, proof of compliance with the continuing education requirement and fee for renewal of a license as an adjuster are filed with the Commissioner prior to the expiration of the existing license, the licensee may continue to act pursuant to said license, unless revoked or suspended prior to the expiration date, until the issuance of a renewal license or until the expiration of ten (10) days after the Commissioner has refused to renew the license and has mailed notice of said refusal to the licensee.  Any request for renewal filed after the date of expiration may be considered by the Commissioner as an application for a new license.

SECTION 11.     AMENDATORY     59 O.S. 2001, Section 1304, is amended to read as follows:

Section 1304.  All licenses of bail bondsmen Each bail bondsman license issued shall expire annually biennially at 12:00 o'clock midnight on the last day of September the birth month of the bondsman, unless revoked or suspended prior thereto by the Insurance Commissioner, or upon notice served upon the Commissioner that the insurer or employer of any bail bondsman has canceled the licensee's authority to act for such insurer or employer.

SECTION 12.     AMENDATORY     59 O.S. 2001, Section 1305, as last amended by Section 55, Chapter 222, O.S.L. 2010 (59 O.S. Supp. 2010, Section 1305), is amended to read as follows:

Section 1305.  A.  The application for license to serve as a bail bondsman shall affirmatively show that the applicant:

1.  Is a person who has reached the age of twenty-one (21) years;

2.  Is of good character and reputation;

3.  Has not been previously convicted of, or pled guilty or nolo contendere to, any felony, or to a misdemeanor involving moral turpitude or dishonesty;

4.  Is a citizen of the United States;

5.  Has been a bona fide resident of the state for at least one (1) year;

6.  Will actively engage in the bail bond business;
7.  Has knowledge or experience, or has received instruction in the bail bond business; and

8.  Has a high school diploma or its equivalent; provided, however, the provisions of this paragraph shall apply only to initial applications for license submitted on or after November 1, 1997, and shall not apply to renewal applications for license.

B.  The applicant shall apply in writing electronically on forms prepared and supplied approved by the Insurance Commissioner, and the Commissioner may propound any reasonable interrogatories to an applicant for a license pursuant to Sections 1301 through 1340 of this title, or on any renewal thereof, relating to qualifications, residence, prospective place of business and any other matters which, in the opinion of the Commissioner, are deemed necessary or expedient in order to protect the public and ascertain the qualifications of the applicant.  The Commissioner may also conduct any reasonable inquiry or investigation relative to the determination of the fitness of the applicant to be licensed or to continue to be licensed including, but not limited to, requiring a national criminal history record check as defined by Section 150.9 of Title 74 of the Oklahoma Statutes.

C.  An applicant shall furnish to the Commissioner a license fee of Two Hundred Fifty Dollars ($250.00) with the application, a complete set of the fingerprints of the applicant and two recent credential-size full face photographs of the applicant.  The fingerprints of the applicant shall be certified by an authorized law enforcement officer.  The applicant shall provide with the application an investigative fee of One Hundred Dollars ($100.00) with which the Commissioner will conduct an investigation of the applicant.  All fees shall be nonrefundable.

D.  Failure of the applicant to secure approval of the Commissioner shall not preclude the applicant from reapplying, but a second application shall not be considered by the Commissioner within three (3) months after denial of the last application.

E.  The fee for a duplicate pocket license shall be Twenty-five Dollars ($25.00).

SECTION 13.     AMENDATORY     59 O.S. 2001, Section 1308, is amended to read as follows:

Section 1308.  A.  The applicant for bail bondsman shall be required to appear in person and take a written an examination prepared by the Insurance Commissioner, testing the applicant's ability and qualifications to be a bail bondsman.  Applications are valid for six (6) months after submission.  If an applicant has not acted upon the application within that period, a new application and fees shall be submitted for the applicant to be considered for licensure.

B.  Each applicant shall become eligible for examination ninety (90) days after the date the application is received by the Commissioner, if the applicant has completed sixteen (16) hours of education as required by Section 1308.1 of this title and the Commissioner is otherwise satisfied as to the applicant's fitness to take prior to the examination.  Examinations shall be held at times and places as designated by the Commissioner, and the applicant shall be given notice of the time and place not less than fifteen (15) days prior to taking the examination.

C.  The fee for the examination shall be One Hundred Dollars ($100.00) in addition to the license fee heretofore provided and shall be submitted after approval of the application but prior to taking the examination.  Results will be mailed to the applicant within thirty (30) days provided after the applicant is examined.

D.  The failure of an applicant to pass an examination shall not preclude the applicant from taking subsequent examinations; provided, however, that at least three (3) months must thirty (30) days shall intervene between examinations; and provided further, after a third or subsequent examination failure, an applicant may not apply and be examined for at least one (1) year after the last examination failure.

SECTION 14.     AMENDATORY     59 O.S. 2001, Section 1308.1, is amended to read as follows:

Section 1308.1  A.  In order to be eligible to take the examination required to be licensed as a bail bondsman, each person shall complete not less than sixteen (16) clock hours of education in subjects pertinent to the duties and responsibilities of a bail bondsman, including all laws and regulations related thereto.  Further, each licensee shall complete annually biennially not less than eight (8) sixteen (16) clock hours of continuing education in said subjects prior to renewal of the license.  Such continuing education shall not include a written or oral examination.
Provided, any person licensed as a bail bondsman prior to November 1, 1989, shall not be required to complete sixteen (16) clock hours of education prior to licensure but shall be subject to the eight-hours sixteen-hour continuing education requirement in order to renew said license, except that a licensed bail bondsman who is sixty-five (65) years of age or older and who has been licensed as a bail bondsman for fifteen (15) years or more shall be exempt from both the education and continuing education requirements of this section.

B.  The Oklahoma Bondsman Association shall provide education for bail bondsman licensure as required by this section; provided that the Insurance Commissioner shall approve the courses offered and provided further such education meets the general standards for education otherwise established by the Insurance Commissioner.

C.  The Oklahoma Bondsman Association shall submit an annual biennially a fee of One Hundred Dollars ($100.00) Two Hundred Dollars ($200.00), payable to the Insurance Commissioner which shall be deposited in the Bail Bondsmen Revolving Fund with the State Treasurer for the purposes of fulfilling and accomplishing the conditions and purposes of this section.

D.  Any person who falsely represents to the Insurance Commissioner that compliance with this section has been met shall be subject, after notice and hearing, to the penalties and fines set out in Section 1310 of this title.

E.  The Commissioner shall adopt and promulgate such rules as are necessary for effective administration of this section.

SECTION 15.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1311.3 of Title 59, unless there is created a duplication in numbering, reads as follows:

A.  It shall be unlawful for any person whose license to act as a bail bondsman has been suspended, revoked, surrendered, or refused, to do or perform any of the acts of a bail bondsman.  Any person convicted of violating the provisions of this subsection shall be guilty of a felony and shall be punished by a fine in an amount not exceeding Five Thousand Dollars ($5,000.00).

B.  It shall be unlawful for any bail bondsman to assist, aid, or conspire with a person whose license as a bail bondsman has been suspended, revoked, surrendered, or refused, to engage in any acts as a bail bondsman.  Any person convicted of violating the provisions of this subsection shall be guilty of a felony and shall be punished by a fine in an amount not to exceed Five Thousand Dollars ($5,000.00).

SECTION 16.     AMENDATORY     59 O.S. 2001, Section 1309, is amended to read as follows:

Section 1309.  A.  A renewal license shall be issued by the Insurance Commissioner to a licensee who has continuously maintained same in effect, without further examination, upon payment of a renewal fee of One Hundred Dollars ($100.00) Two Hundred Dollars ($200.00) for a bail bondsman and proof of completion of eight (8) sixteen (16) hours of continuing education as required by Section 1308.1 of this title.  The renewal fee for licenses expiring September 15, 2012, shall be prorated to the birth month of the bondsman.  Thereafter the renewal fee shall be submitted by September 15 of each year biennially by the last day of the birth month of the bondsman.  Such licensee shall in all other respects be required to comply with and be subject to the provisions of Section 1301 et seq. of this title.

B.  In case of renewal of An individual holding a professional bondsman license, the application shall also provide a an annual financial statement prepared by an accounting firm or individual holding a permit to practice public accounting in this state in accordance with generally accepted principles of accounting procedures showing assets, liabilities, and net worth, said the annual statement to be as of a date not earlier than ninety (90) days prior to submission of the license renewal application the last day of the birth month of the bondsman.  The statements shall be attested to by an unqualified opinion of the accounting firm or individual holding a permit to practice public accounting in this state that prepared the statement or statements.  The statement shall be submitted by September 15 of each year annually by the last day of the birth month of the bondsman.

C.  In case of renewal of An individual holding a property bondsman license, the application shall also provide a an annual county assessor's written statement stating the property's assessed value for each property used to post bonds and a written statement from any lien holder stating the current payoff amount on each lien for each property used to post bonds.  The written statements shall be submitted by September 15 of each year annually by the last day of the birth month of the bondsman.
D.  If the license is not renewed or the renewal fee is not paid by September 30 of each year the last day of the birth month of the bondsman, such the license shall expire automatically pursuant to Section 1304 of this title.  If after November 30 of each year the license has not been renewed or the renewal fee paid, then such licensee shall be required to apply for a license as a new applicant After expiration, the license may be reinstated for up to one (1) year following the expiration date.  If after the one-year date the license has not been renewed, the licensee shall be required to apply for a license as a new applicant.

E.  Late renewal Reinstatement fees shall be double the original fee.

SECTION 17.     AMENDATORY     59 O.S. 2001, Section 1314, as last amended by Section 58, Chapter 222, O.S.L. 2010 (59 O.S. Supp. 2010, Section 1314), is amended to read as follows:

Section 1314.  A.  When a bail bondsman or managing general agent accepts collateral, the bail bondsman or managing general agent shall give a written receipt for same, and this receipt shall give in detail a full description of the collateral received.  A description of the collateral shall be listed on the undertaking by affidavit.  All property taken as collateral, whether personal, intangible or real, shall be receipted for and deemed, for all purposes, to be in the name of, and for the use and benefit of, the surety company or licensed professional bondsman, as the case may be.  Every receipt, encumbrance, mortgage or other evidence of the custody, possession or claim shall facially indicate that it has been taken or made on behalf of the surety company or professional bondsman through its authorized agent, the individual licensed bondsman or managing general agent who has transacted the undertaking with the bond principal.  Any mortgage or other encumbrance against real property taken under the provisions of this section which does not indicate beneficial ownership of the claim to be in favor of the surety company or professional bondsman shall be deemed to constitute a cloud on the title to real estate and shall subject the person filing, or causing same to be filed, in the real estate records of the county, to a penalty of treble damages or One Thousand Dollars ($1,000.00), whichever is greater, in an action brought by the person, organization or corporation injured thereby.  For collateral taken, or liens or encumbrances taken or made pursuant to the provisions of this section, the individual bondsman or managing general agent taking possession of the property or making the lien, claim or encumbrance shall do so on behalf of the surety company or professional bondsman, as the case may be, and the individual licensed bondsman shall be deemed to act in the capacity of fiduciary in relation to both:

1.  The principal or other person from whom the property is taken or claimed against; and

2.  The surety company or professional bondsman whose agent is the licensed bondsman.

As fiduciary and bailee for hire, the individual bondsman shall be liable in criminal or civil actions at law for failure to properly receipt or account for, maintain or safeguard, release or deliver possession upon lawful demand, in addition to any other penalties set forth in this subsection.  No person who takes possession of property as collateral pursuant to this section shall use or otherwise dissipate the asset, or do otherwise with the property than to safeguard and maintain its condition pending its return to its lawful owner, or deliver to the surety company or professional bondsman, upon lawful demand pursuant to the terms of the bailment.

B.  Every licensed bondsman shall file monthly by mail with return receipt requested electronically with the Insurance Commissioner and on forms prescribed approved by the Commissioner as follows:

1.  A monthly report showing every bond written, amount of bond, whether released or revoked during each month, showing the court and county, and the style and number of the case, premiums charged and collateral received; and

2.  Professional bondsmen shall submit by mail with return receipt requested notarized electronic monthly reports showing total current liabilities, all bonds written during the month by the professional bondsman and by any licensed bondsman who may countersign for the professional bondsman, all bonds terminated during the month, and the total liability and a list of all bondsmen currently employed by the professional bondsmen.

Monthly reports shall be postmarked or stamped "received" by submitted electronically to the Insurance Commissioner by the fifteenth day of each month.  The records shall be maintained by the Commissioner as public records.
C.  Every licensee shall keep at the place of business of the licensee the usual and customary records pertaining to transactions authorized by the license.  All of the records shall be available and open to the inspection of the Commissioner at any time during business hours during the three (3) years immediately following the date of the transaction.  The Commissioner may require a financial examination or market conduct survey during any investigation of a licensee.

D.  Each bail bondsman shall submit each month with the monthly report of the bondsman, a reviewal fee equal to two-tenths of one percent (2/10 of 1%) of the new liability written for that month.  The fee shall be payable to the Insurance Commissioner who shall deposit same with the State Treasurer.

SECTION 18.     REPEALER     Section 11, Chapter 125, O.S.L. 2007 (36 O.S. Supp. 2010, Section 1435.7A), is hereby repealed.

SECTION 19.  This act shall become effective June 20, 2011.

SECTION 20.  It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval.

Passed the House of Representatives the 16th day of May, 2011.

	
Presiding Officer of the House of
	Representatives

Passed the Senate the 17th day of May, 2011.

	
Presiding Officer of the Senate