NC Bill Ending Course Requirements for Agent Licenses on Way to Governor

North Carolina insurance producers will no longer be required to complete education courses before taking the license exam, under a bill now awaiting the governor’s signature.

House Bill 737 was approved with little opposition by both chambers in the General Assembly last week. It ends the longstanding requirements that agents complete a 40-hour course. Agents must continue to take the exam before being licensed, and many will probably choose to take some preparatory classes online, Department of Insurance officials have said.

“It’s my understanding that most people who don’t take the online courses typically do not pass the exam,” Charles Whitehead, an attorney with the state Department of Insurance, said in April.

If signed into law by North Carolina Gov. Josh Stein, the measure would take effect immediately. It could attract more agents and ease what has been called a shortage of producers in the state, lawmakers said.

A similar bill that would have reduced license course requirements from 200 hours to 60 hours failed to pass in Florida Legislature this year. House Bill 1047 was opposed by the Florida Association of Insurance Agents and it died in committee.

North Carolina’s HB 737 would make a number of other changes requested by the state insurance commissioner:

• Insurance carriers, when registering each year with the DOI, would have to file a group capital calculation report. Insurance holding companies that have only one insurance company would be exempt from the requirement. Insurers that provide a group capital calculation report for the Federal Reserve would also be exempt, unless the Fed does not share the information with NCDOI.
• Carriers would have to be included in the National Association of Insurance Commissioners’ liquidity stress test framework. In most cases, they would be required to file the results of the previous year’s stress test with the DOI.

The measure would impose other requirements on insurers. The bill can be seen here.

Topics Agencies North Carolina