3901-5-03 Continuing education course approval.

(A) Purpose

The purpose of this rule is to establish a procedure for the review and approval of continuing education courses which licensed agents must complete for the purpose of maintaining their licenses.

(B) Authority

This rule is issued pursuant to the authority vested in the superintendent under sections 3901.041 and 3905.486 of the Revised Code.

All requests for approval of a course must be made in the manner prescribed by the superintendent and shall contain the following information.

(1) A description of:

(a) The number of requested credit hours and length of the course. For purposes of this rule a credit hour must provide for no less than fifty minutes of instruction. Breaks, introductions, lunches, announcements, or other non- instruction time is to be excluded in calculating the credit hours requested. Each course shall be a minimum of one credit hour, and shall be in increments of whole or one-half credit hours.

(b) The lines of insurance to which the course relates.

(c) The purpose or objective of the course and how the material offered will increase the knowledge of insurance and related subjects for the participants.

(d) The names of the authorized provider officials as defined in rule 3901-5-02 of the Administrative Code.

(e) The course tuition and the provider’s fee refund policy, which must conform to the requirements of rule 3901-5-04 of the Administrative Code.

(f) The method of presentation.

(g) The time, date, and location of the course, if known. If the course will be offered more than once, the date, time and location for each offering shall be provided, if known.

(2) A detailed content outline which contains a description of each topic to be covered by the course. This outline must specify the time components spent on each topic and the description must be sufficiently detailed to justify the request for each credit hour. The outline shall contain:

(a) The proposed time component.

(b) The specific material to be covered in each time component.

(d) The justification for the time allotted to each component to teach or instruct that component.

(3) A description of materials to be employed by the instructor in teaching the course including a copy of the promotional brochures currently in use or proposed to be used for the course once approved by the Department. All promotional material must include:

(a) The level of the course (i.e. introductory, intermediate, advanced).

(b) Information about the experience and qualifications of each instructor. In lieu of including this information in the materials, a provider may make it available upon request to any person.

(4) A description of how the course is to be administered including:

(a) The criteria used by the provider in selecting instructors.

(b) The method of verification of attendance or completion of the course.

(c) For self study (correspondence) courses, the time restrictions imposed by the provider upon the participants for the completion of the course.

(d) For self study courses, identification of the course and examination format as:

(i) On-line course with interactive chapter or section questions,

(ii) On-line course with on-line examination, or

(iii) On-line or paper course with mail-in examination.

(iv) Self study (any method) with proctored examination.

(v) Other formats as approved by the Superintendent.

(5) If course approval is being requested through the use of an approved multi-state form, the provider must submit the completed form and any required attachments as noted on the form.

(6) Any other information the superintendent may request.

(D) Standards for review of course application

(1) In order for a course to be approved by the Ohio Department of Insurance as an acceptable continuing education course, at a minimum, the course must:

(a) Be offered by an approved provider.

(b) Use the most recent policy forms filed in Ohio, editions, and laws to the extent possible.

(c) Have significant intellectual or practical content that enhances and improves the agent’s insurance knowledge or professional competence. A course should be an organized program of learning dealing with matters directly related to insurance, the insurance industry, professional competence, ethical obligations, insurance office operations or management or similar subjects that will promote the purposes of this rule.

(d) Meet all other criteria set forth in this rule.

(E) Instructor qualification

(1) The authorized provider official is responsible for verifying that instructors meet the required minimum qualifications. Instructors must meet one of the following qualification categories:

(a) Qualification one: the instructor or speaker holds a post graduate degree in insurance or a related field, or has one of the following professional designations:

“Chartered Life Underwriter” (“CLU”);

“Chartered Financial Consultant” (“ChFC”);

“Fellow Life Management Institute” (“FLMI”);

“Life Underwriting Training Council Fellow” (“LUTCF”);

“Chartered Property and Casualty Underwriter” (“CPCU”);

“Certified Insurance Counselor” (“CIC”);

“Registered Health Underwriter” (“RHU”); or

“Registered Employee Benefit Consultant” (“REBC”).

(b) Qualification two: the instructor or speaker has four years experience as a full- time employee or licensed agent interpreting or explaining insurance policy contracts and in addition holds as one or more of the following designations:

“Certified Employee Benefits Specialist” (“CEBS”);

“Certified in Long Term Care” (“CLTC”)

“Certified Senior Advisor” (“CSA”)

“Life Underwriting Training Council Graduate” (“LUTC Graduate”);

“Fraternal Insurance Counselor” (“FIC”);

“Associate in Underwriting” (“AU”);

“Program General Insurance” (“INS”);

“Accredited Advisor Insurance” (“AAI”);

“Associate in Claims” (“AIC”);

“Associate in Risk Management” (“ARM”);

“Associate in Premium Auditing” (“AIPA”);

“Associate in Management (“AIM”);

“Associate in Loss Control Management” (“ALCM”);

“Associate in Premium Auditing” (“APA”);

“Associate in Research and Planning” (“ARP”);

“Associate in Insurance Accounting and Finance” (“AIAF”);

“Associate in Marine Insurance Management” (“AMIM”);

“Associate in Automation Management” (“AAM”);

“Associate in Reinsurance” (“ARE”);

“Associate in Fidelity and Surety Bonding” (“AFSB”); or

Associate or bachelor degree with a specialization in insurance.

(2) A provider shall verify each instructor’s relevant qualifications and shall be prepared to provide evidence of such qualifications to the department upon request.

(3) Instructors must be knowledgeable in the subject that they teach in a course.

(4) Instructors may receive CE credits for a course which they teach. A course shall be eligible for instructor’s CE credits only once during a compliance period and the instructor may receive double the number of credit hours which they teach.

(5) Insurance company trainers as instructors must be full-time salaried employees of the insurance company sponsoring the course and must have as part of their full- time responsibilities the duty to provide insurance company training.

(6) College and university instructors may be full-time or adjunct faculty of the accredited college or university, must be teaching a curriculum course in his or her field of expertise, and must meet the requirements of the association that accredits the college or university.

(F) Review of application

(1) The department shall review each application within thirty days of the date of receipt of a complete application and appropriate fees. The effective date of a course approval shall be within the superintendent’s discretion.

(2) If the provider submits a course application which is incomplete or if the application lacks information deemed necessary, the department may return the application with a letter indicating the areas which must be addressed in order for the department to continue the approval process. The course filing fee is non-refundable and non-transferable, and the department will retain the course filing fee. If the department does not receive a reply to this rejection letter within thirty days of the date of the letter, the filing may be terminated, and fee forfeited.

(3) Providers will be notified in writing of the approval of each course and of the course number assigned to it by the department. A course is approved from the date of approval until December thirty-first of the same year in which the course is approved. The course must be renewed on an annual basis in order for the provider to continue offering the course. An application for renewal shall made by November fifteenth.

(4) Based upon a review of the application the Department of Insurance may approve a course for fewer credits than requested, and a provider shall only offer and award the number of credit hours as approved.

(G) Self-study courses

(1) A self-study course is defined for purposes of this section as any continuing education course which is completed by self study and which does not require a licensee to attend organized classes. A self-study course may be:

(a) An interactive on-line course which has at the end of each chapter or section a series of questions designed to test the student’s subject matter knowledge of that chapter or section. The student shall not advance to the next chapter or section until the student has successfully answered all the questions for the previous chapter or section. The student may review the material in order to answer a question. An interactive on-line self-study course is not required to have a final examination,

(i) Interactive on-line courses must be designed so as to prevent the student from completing the course in a time unreasonably short when compared to the credit hour total approved for the course.

(b) A non-interactive on-line course which has a scored on-line final examination, or

(d) Any type of self study program with a proctored final examination.

(e) Other types of self study courses as the Superintendent may approve.

(2) In addition to providing all other information required pursuant to this rule, a provider shall include:

(a) for an on-line interactive course, the number of questions that appear at the end of each chapter or section, a sample of the questions, references from the questions back to the text if requested by the department, and a copy of the answer key for the sample questions; or

(b) for a course which requires a final examination, the number of examination questions which will appear on the student’s examination, references from the examination back to the text if requested by the department, and a copy of the examination answer key with the application. The answer key shall indicate the total amount of credit possible for answering each question correctly. If essay questions are employed in the examination there must be an explanation as to how essay questions will be graded.

(3) The following are minimum requirements for on-line interactive chapter/section questions or final examinations:

(a) Multiple choice items must have a minimum of four options.

(b) Multiple choice items must have only one correct response.

(d) No correct answer to one question shall provide a clue to the correct answer to any other questions in the chapter/section or examination.

(e) Questions shall be clearly written.

(f) Questions shall adequately cover the course material set out in the course outline.

(4) In order to obtain credit for a self-study course the licensee must either:

(a) Complete an interactive on-line course having answered one hundred percent of each chapter’s/section’s questions correctly; or

(b) Receive a grade of seventy percent or greater on the final examination.

(5) A final examination shall be administered only upon completion of the self-study course.

(6) Each student shall certify that he or she completed the course and, if applicable, the examination without assistance. If the examination is monitored, the provider or proctor may check ID to identify students.

(7) Details on how the examination materials are to be returned to the provider shall be included in the instructions

(H) Organization or association meeting credit

A state insurance professional association or organization that is an approved provider pursuant to rule 3901-5-02 and that is affiliated with a national association or organization may file a course application and roster for annual association meetings conducted by the national association or organization.

(1) The course application must be filed prior to the meeting.

(2) The method of attendance verification shall be determined by the provider.

(3) Fees

(a) No course fee shall be charged.

(b) The roster fee must be paid.

(I) Severability

If any paragraph, term, or provision of this rule is adjudged invalid for any reason, the judgment shall not affect, impair or invalidate any other paragraph, term or provision of this rule, but the remaining paragraphs, terms and provisions shall be and continue in full force and effect.

Effective: 09/22/2005

R.C. 119.032 review dates: 07/08/2005 and 12/31/2009

Promulgated Under: 119.03

Statutory Authority: 3901.041, 3905.486

Rule Amplifies: 3905.484

Prior Effective Dates: 10/12/98, 7/8/02