A North Carolina House of Representatives committee voted Wednesday to do away with educational course requirements for insurance agent licenses, a move that could help address what has been called a shortage of producers in the state.
“It’s a 40-hour course. I had to take a week off work to take the course when I got my license,” said Rep. Chris Humphrey, the bill’s sponsor and co-chair of the House Insurance Committee.
He was referring to the coursework spelled out by North Carolina law and regulations, required of all insurance producers before taking the licensing exam. Under House Bill 737, approved without a dissenting vote by the committee on Wednesday, producers would still be required to pass the license exam, but they could choose to take preparatory classes online – or not, officials said.
“It’s my understanding that most people who don’t take the online courses typically do not pass the exam,” said Charles Whitehead, an attorney with the state Department of Insurance.
He and Humphrey noted that a number of other states in recent years have abolished the course requirements for prospective producers. The Independent Insurance Agents of North Carolina supports the bill, said Joe Stewart, vice president of governmental affairs at IIANC.
Florida lawmakers are now considering a similar bill, HB 1047. It would not end the course requirements but would reduce them, from 200 hours to 60 hours. The bill passed a Florida House subcommittee and is now in the full Commerce Committee, awaiting action.
Unlike their counterparts in North Carolina, the Florida Association of Insurance Agents strongly opposes weakening the education requirements for agents, noting that the Florida market is complex and ever-changing.
In the North Carolina General Assembly, Humphrey acknowledged that he did not know the full extent of coursework required in the Tarheel State. But he said eliminating the course requirements would remove a hurdle that aspiring agents now face.
“The industry is seeing a shortage of agents right now, so this would remove that barrier and make it easier for individuals to get a license,” Humphrey said at the meeting.
The North Carolina bill would leave the state’s insurance regulators with no ability to modify the education requirements.
“The Commissioner shall not require an individual who applies for an insurance producer license in this State to complete any specific amount of instruction or any specific course of instruction,” reads the bill.
HB 737 now goes to the House Finance Committee.
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