Quest CE

This year at Quest CE we have a great deal to be thankful for. Within the past few months we have celebrated our 5th Anniversary as Quest Continuing Education Solutions; awarded one of the ”Top Milwaukee Workplaces” by the Milwaukee Business Journal; and honored on Inc. Magazine’s 500|5000 List of the Fastest Growing Private Companies in America.

However, we would not have been able to accomplish this without our clients. It has been a pleasure to work with you and we truly value your business. At Quest CE, we strive to satisfy our clients by providing a level of customer service unparalleled in this industry.

We would like to show our appreciation by extending to you a 10%* discount on our suite of products listed below:

• Instructor Filings
• New Course Filings
• Custom Course Authoring
• Voucher Card Orders
• Custom Portal Development
• Quest Proprietary Course Licensing
• Firm Element Training
• ACM - Annual Compliance Meeting
• ACQ - Annual Compliance Questionnaire
• NA - Needs Analysis Survey
• OBA’s - Outside Business Activities
• G&E’s - Gifts and Entertainment
• AML – Anti-Money Laundering Training
• State Insurance Training

As an additional thank you to our retail customers, we are proud to offer a 10%* discount on our CE courses at learn.questce.com during the month of September. Simply use the discount code “THANKYOU” during checkout to receive the discount.

For more information on this limited special promotion, please contact Quest CE at 877-593-3366 or e-mail us at info@questce.com.

We are happy to have served you in the past, and we look forward to continuing to meet your Continuing Education needs in the future.

* Discount not applicable to State Fees

If you have not already completed your continuing education, you only have 60 days to fulfill your Minnesota CE requirements. Don’t wait until the last minute to finish your continuing education. Sign up with Quest CE today and receive 15% off your entire purchase by using discount code “EARLYBIRD”.

Quest CE offers non-company sponsored courses, therefore all continuing education courses may be taken online. Minnesota insurance producers need 24 hours of continuing education during each licensing period. Additionally, three (3) of those hours must be an ethics course. To view our library of Minnesota Insurance CE courses please Click Here.

Producers are required to have adequate product specific training, including compliance with the insurer’s standards for product training, prior to soliciting an annuity product. In addition, a one-time minimum four (4) credit hour general annuity training course is required.

NAIC adopted this Model Regulation to set standards and procedures for suitable annuity recommendations. In addition, it is to require insurers to establish a system to supervise recommendations so that the insurance needs and financial objectives of consumers are appropriately addressed.

Insurers will be held responsible for ensuring that annuity transactions are suitable. Prior to recommending a particular annuity to a consumer, an insurer or producer must make reasonable efforts to obtain the consumer’s suitability information. Producers will be required to be trained on the provisions of annuities in general, and the specific products they are selling. Where need be, the suitability standards will be consistent with suitability standards imposed by the Financial Industry Regulation Authority (FINRA).

If a producer receives substantially similar training in another jurisdiction, it would satisfy an insurance department’s training requirements. Prior to allowing a producer to sell its annuity products, insurers shall verify the producer has completed the mandated training.

If you have any questions about the new training requirement call Quest CE at 877.593.3366 and ask to speak with one of our qualified compliance specialists or e-mail us at info@questce.com.

Quest CE is proud to announce our Iowa 4-Hour Annuity Training Course has been approved by the state and meets the Iowa Administrative Rule 191-15.72 for a one-time, four (4) hour annuity training course. In addition, this course is approved for resident CE credit.

Effective January 1, 2011, Iowa Administrative Rule 191-15.72 requires all Insurance Producers selling or soliciting Annuity Products in the State of Iowa to obtain four (4) continuing education credits by an APPROVED vendor offering an Annuity Products Course. This is a one-time requirement and is not a condition of license renewal.

This is a separate requirement from the already existing rule 15.80 for Indexed Insurance Products.

To purchase the course or view our Iowa Online Course Library please Click Here.

On July 12, 2010, a US Court of Appeals threw out the Securities and Exchange Commission’s Rule 151A effecting indexed annuities. Specifically, this left indexed annuities under state regulation as an insurance product rather than previously under the SEC’s oversight as a security. The decision coincides with a financial reform bill that Congress was considering which includes an amendment that would also keep indexed annuities under the purview of states.

For more information on this change or for updates visit the SEC’s website www.sec.gov

On July 27, 2010, The Securities and Exchange Commission (SEC) published a request for public comment to conduct its study of the obligations and standards of care of broker-dealers and investment advisers providing personalized investment advice about securities to retail investors.

The study is required under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which President Obama signed into law on July 21, 2010. As required by the Dodd-Frank Act, the SEC is requesting public input, comments, and data on issues related to the effectiveness of existing standards of care for brokers-dealers and investment advisers, and whether there are gaps, shortcomings, or overlaps in the current legal or regulatory standards.

The public comment period will remain open for 30 days, following publication of the comment request in the Federal Register.

Historically, the SEC has acted as the “watch dog” to investment advisors whereas broker dealers are held accountable by FINRA, the Self Regulatory Organization (SRO) that performs market regulation under contract with brokerage firms and trading markets. Several SEC Commissioners have made comments in the past that favor an SRO model and FINRA continues to assert that it can take on the job of adviser oversight.

The results of the study could significantly impact adviser oversight in the future and potentially lead to a module similar to that of FINRA or FINRA could become an overseer to the Investment Advisor industry, in addition to their role as SRO to broker dealers.

For more information on this topic visit the SEC’s website www.sec.gov

The Securities and Exchange Commission is seeking comments on a proposal that would require encryption of certain information provided on portable media devices, such as a CD-ROM or DVD.

The Financial Industry Regulatory Authority has asked the SEC to approve a proposal that would require brokerages and advisers, among others, to encrypt certain records and other data they provide to FINRA when the regulator requests information.

FINRA’s proposal would amend an existing rule that requires its members to provide information FINRA requests in connection with an investigation, complaint, examination or adjudicatory proceeding. Members often provide the information, which is typically voluminous, in electronic format, using a CD-ROM or DVD, according to FINRA’s regulatory filing. That information could include client names as well as account and Social Security numbers, among other personal data.

FINRA’s proposal would require a confidential code or process to access the data. Its members would have to use a method that meets industry standards for strong encryption. They would also have to inform FINRA staff of the process or code in a communication that’s separate from the encrypted information, such as an email or fax.

The SEC published the proposal in the Federal Register on June 18. Comments are due within 21 days.

FINRA and NYSE Euronext have announced that they have completed their previously announced agreement in which FINRA will assume responsibility for performing market surveillance and enforcement functions currently managed by NYSE Regulation. This agreement comes into effect immediately.

FINRA will assume regulatory functions for NYSE Euronext’s U.S. equities and options markets – the New York Stock Exchange, NYSE Arca and NYSE Amex. FINRA currently provides regulatory services to the NASDAQ Stock Market, NASDAQ Options Market, NASDAQ OMX Philadelphia, NASDAQ OMX Boston, The BATS Exchange and The International Securities Exchange.

To read the full press release click here.

Continuing Education Question and Answers for Licensees on ACT 77 - 2010 CE Laws

When Does This Law Become Effective?

JULY 1, 2010

What Is The First Renewal Group That This Rule Will Take Affect?

The first renewal Group that will be affected are the August 16, 2012 renewals.

What Are The New Requirements For Continuing Education?

Pursuant to the Hawaii Revised Statutes §431:9A-124: “A licensee shall during the twenty-four months preceding a license renewal, complete the required number of credits hours in approved continuing education.”

The required numbers of credits are as follows:

For a licensee authorized to sell lines of insurance in only life/accident and health or sickness or only in property/casualty; twenty one credit hours relating to the class of insurance for which the license is held, including three credit hours relating to ethics and or the Hawaii insurance laws and rules.

For a licensee authorized to sell lines of insurance in both life/accident and health or sickness and property/casualty; the total requisite number of credit hours are thirty hours of which:

•    Ten credit hours relating to the life/accident and health or sickness class of insurance.
•    Eleven credit hours relating to the property/casualty class of insurance.
•    Three credit hours shall relate to ethics and or the insurance laws and rules.

Is anyone exempt from the continuing education requirements?
•    Hawaii Revised Statutes §431:9A-116 (Reciprocity):

a) The commissioner shall waive any requirements for a nonresident license applicant with a valid license from the applicant’s home state, except the requirements imposed by section 431:9A-108, so long as the applicant’s home state awards nonresident licenses to residents of this State on the same basis.
(b) A nonresident producer’s satisfaction of the producer’s home state’s continuing education requirements for licensed insurance producers shall constitute satisfaction of this State’s continuing education requirements so long as the nonresident producer’s home state recognizes the satisfaction of its continuing education requirements imposed upon producers from this State on the same basis. [L 2001, c 216, pt of §2]

•    Hawaii Revised Statutes §431:9A-130 (Commissioner’s authority to grant waiver):
Upon the receiving of a written request and a showing of good cause, the commissioner shall have the authority to grant a waiver of any requirement of an insurance law or insurance rule as applied to an applicant or a producer. [L 2001, c 216, pt of §2]

Can I take an Ethics course instead of a Law Course?

Yes you may take an approved ethics course instead of a law and or rules course.  The law states three (3) credit hours shall relate to ethics and or the insurance laws and rules.

Can I take a Law course instead of an Ethics Course?

Yes, you may take an approved course in the laws and rules.  The law states three (3) credit hours shall relate to ethics and or the insurance laws and rules.

If I take both Ethics and Law/Rule courses will the excess credits go into the subject credits?

Yes if it is for the same line of insurance.

Can I take the same course twice, once for Life/Health and once for Property/Casualty and receive both credits?

No. Credit will be earned only for the first time a course is taken in a renewal period. A licensee may attend the course a second time but will not receive CE credits for the same course code.

Is anyone exempt from the continuing education requirements?

The continuing education requirement does not apply to the following:

•    Hawaii Revised Statutes §431:9A-116 (Reciprocity):

(a) The commissioner shall waive any requirements for a nonresident license applicant with a valid license from the applicant’s home state, except the requirements imposed by section 431:9A-108, so long as the applicant’s home state awards nonresident licenses to residents of this State on the same basis.
(b) A nonresident producer’s satisfaction of the producer’s home state’s continuing education requirements for licensed insurance producers shall constitute satisfaction of this State’s continuing education requirements so long as the nonresident producer’s home state recognizes the satisfaction of its continuing education requirements imposed upon producers from this State on the same basis. [L 2001, c 216, pt of §2]

•    Hawaii Revised Statutes §431:9A-130 (Commissioner’s authority to grant waiver):

Upon the receiving of a written request and a showing of good cause, the commissioner shall have the authority to grant a waiver of any requirement of an insurance law or insurance rule as applied to an applicant or a producer. [L 2001, c 216, pt of §2]

Can I receive an extension for my continuing education requirements?

A licensee may request an extension of time if the licensee has good cause, or the licensee is on extended active military duty.

How do I request an extension of time for my continuing education requirements?

A licensee requesting an extension of time for their continuing education requirement shall submit a written request to the Insurance Commissioner explaining the reason for the request at least 90 days prior to the licensee’s renewal date.
What if I am getting a new license?

A new licensee who has been licensed for less than two years at the time of the licensee’s first renewal will be exempt from continuing education requirements for that renewal. The continuing education requirement will go into effect for each subsequent renewal thereafter for the new licensee.

My agency/company has a license.  Does anyone need to take the continuing education requirements?

Yes, a designated representative must complete the continuing education requirement.

How long are my credits valid for?

The continuing education credits are valid for two years from the completion date of the course.

If I have more credits than required for a renewal, can I apply the excess credits to the following renewal?

No. Pursuant to the Hawaii Revised Statutes §431:9A-155: “No credit hours earned during a single renewal cycle may be carried over and counted towards satisfaction of the credit hour requirements for a following renewal cycle for the same license.”

What happens if I don’t complete my continuing education requirements?

Pursuant to the Hawaii Revised Statutes §431:9A-124(2d): “A licensee’s failure to satisfy all of the continuing education requirements prior to the renewal date shall result in that licensee’s license being automatically placed on an inactive status. To reactivate a license, the licensee shall submit proof to the insurance division that the requisite number of credit hours have been completed and the licensee shall pay any required fees and penalties.”

Where can I get a list of approved providers and courses?

A list of approved providers, courses and the provider’s contact phone information are available:

1.    Online at: http://www.ehawaii.gov/ceprovidercourses
2.    E-mail your name, fax number or e-mail address to:InsLic@dcca.hawaii.gov and indicate “CE List of Providers” in the subject line;

The providers will inform you of their approved courses, credit hours, date and time of course offering, and if there are any applicable fees.

Do I need to do anything after I have completed a continuing education course?

The provider of the course will issue a licensee a certificate of completion, upon the successful completion of the course. A licensee must keep his or her records of continuing education credits for four years. The provider will submit the credit completion information to the Insurance Division. If there are any discrepancies in the amount of continuing education credits a licensee has earned, the Insurance Division will reconcile its records with the licensee’s certificate of completions and the course provider’s records at the time of the licensee’s license renewal.

How can a licensee verify the credits on file with the Insurance Division?

Licensees may check the credits that were reported to the Insurance Division online: http://www.ehawaiigov.org/agentce/

Licensees are reminded to maintain their certificates of completion for four years and should not submit the certificates to the Hawaii Insurance Division unless requested to do so. If there are any discrepancies, the licensee should contact the provider who offered the course and request that the provider submit the course roster to the Insurance Division.

Following the consolidation of NASD and the member regulation, enforcement and arbitration functions of NYSE Regulation into FINRA, FINRA established a process to develop a new consolidated rulebook (Consolidated FINRA Rulebook).  FINRA proposed new consolidated rules in phases for approval by the SEC as part of the Consolidated FINRA Rulebook.

In February and March 2010, the SEC approved six rule filings, (see below) relating to the Consolidated FINRA Rulebook. The effective date for all of the proposed rule changes is June 14, 2010.

•    FINRA Rule 2261
•    FINRA Rule 3160
•    FINRA Rule 3240
•    Information Notice 03/12/08
•    Information Notice 10/06/08
•    Regulatory Notice 08-57