Continuing Education Guidelines and Continuing Education Provider

Continuing Education Guidelines and Continuing Education Provider

Mississippi Insurance Department Mike Chaney, Commissioner of Insurance Pre-Licensing and Continuing Education Guidelines and Provider Packet July 1,...

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MONTANA INSURANCE CONTINUING EDUCATION LICENSEE
MONTANA INSURANCE CONTINUING EDUCATION LICENSEE WRITTEN CERTIFICATION. NAME OF INDIVIDUAL (As on license: First, Middle,

Mississippi Insurance Department Mike Chaney, Commissioner of Insurance

Pre-Licensing and Continuing Education Guidelines and Provider Packet July 1, 2016

MIKE CHANEY COMMISSIONER OF INSURANCE STATE OF MISSISSIPPI

PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

TABLE OF CONTENTS SECTION 1: PURPOSE SECTION 2: DEFINITIONS SECTION 3: LICENSEE REQUIREMENT SECTION 4: COURSE APPROVAL SECTION 5: COURSES DEEMED BY THE COMMISSIONER TO MEET THE STANDARDS SET FORTH IN MISS . CODE A NN . § 83-17-253, 83-17-417, §83-39-3 SECTION 6: CALCULATION OF CREDIT HOURS SECTION 7: COURSE APPROVAL P ROCESS SECTION 8:

RECOMMENDED I NSTRUCTOR QUALIFICATIONS

SECTION 9:

CREDIT FOR INSTRUCTORS

SECTION 10: ADVERTISING SECTION 11: ATTENDANCE SECTION 12: HARDSHIP SECTION 13: SANCTIONS FOR NON-COMPLIANCE SECTION 14: RESERVATION OF RIGHTS SECTION 15: EFFECTIVE DATE APPENDIX: PROVIDER PACKET

1|Page MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

SECTION 1: PURPOSE

These guidelines establish the criteria which must be met to ensure compliance with Miss. Code Ann. § 83-17-251 through § 83-17-261, § 83-17-413 through 83-17417, and § 83-17-507 through 83-17-515, and §83-39-3. SECTION 2: DEFINITIONS

As used in this section: i. “Bail enforcement agent” – means a person who assists the professional bail agent in presenting the defendant in court when required, or who assists in the apprehension and surrender of the defendant to the court or who keeps the defendant under necessary surveillance. ii. “Classroom (a.k.a. synchronous, contact)”- shall mean a physical or virtual place of study for multiple participants. Course activities or information occurring in real time at a specific time, date and place, and delivered via Internet or in person, such as but not limited to seminar/workshop, webinar, virtual class or teleconference (see CER form). Student attendance is based on personally identifiable information (e.g., username, password, email, government-issued identification, signature) and student participation or interaction with course activities. Only prelicensing classroom courses require an examination. iii. “Commissioner”- shall mean the Commissioner of Insurance for the State of Mississippi. iv. “Completion Date” – The date on which the student completes the course, including passing any required exam and affidavit v. “Course”- shall mean a formal program of learning which contributes directly to the professional competence of the licensee and meets standards outlined herein and in the Mississippi Code. A self-study or classroom presentation of information on insurance and/or risk management topics, delivered in person, in print or electronically, which may be interactive or not, with successful completion measured either by attendance (classroom) or by examination/assessment (self-study). vi.

“CER form”- shall mean the NAIC continuing educational reciprocity form.

2|Page MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

vii. “Course Completion Roster”- A listing of course completions, provided in a format determined by the Department, which includes the student’s name, national producer and/or license number, provider number, course number and course completion date. viii. “Course Difficulty Level”- Course difficulty level is determined based on whether the course is designed for inexperienced or experienced practitioners, as well as the amount of information presented and at what pace the information is presented: ●Basic: A course designed for entry-level practitioners or practitioners new to the subject matter. Prelicensing study is basic level. ●Intermediate: A course designed for practitioners who have existing competence in the subject area and who seek to further develop and apply their skills. ●Advanced: A course designed for practitioners who have a strong foundation and high level of competence in the subject matter. ix. “Course offering”- an approved synchronous event with a specific start and end time. x. “Credit Hour”- shall mean the value assigned to a course by the Commissioner, his designee or his designated evaluation educational administrator upon review and approval of a course application or CER form. xi.

“Department”- shall mean the Mississippi Insurance Department.

xii. “Disinterested third party”- shall mean a licensed insurance producer, independent adjuster or public adjuster or a person with no family or financial relationship to the student. xiii. “Distance learning”- shall mean a classroom educational program in which the licensee and the instructor are in different physical locations and interact with each other through various methods of telecommunication, including but not limited to video teleconference or webinar. xiv. “Interactive”- course includes regularly occurring opportunities for student participation, engagement, and interaction with or in course activities and information. Examples include but are not limited to question and answer sessions, polling, games, sequencing, and matching exercises. xv. “Interactive course content”- elements included in the online course, in addition to text, such as video, animation, interactive exercises, quizzes, case studies, games and simulations. Interactive elements should be applicable to course material and facilitate student learning. Only mandatory interactive elements should be included in the calculation of CE credit hours. Calculation of CE hour credits should be based on the run time of the interactive elements. CE provides will indicate run time of the interactive elements in the course content and upon request provide access to the state for review of the course. 3|Page MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

xvi. “Instructor”- shall mean an individual who is qualified to teach, lead or otherwise instruct a course. A subject matter expert presenting course activities or information in a contact course (in person or via Internet). The provider must select an instructor that is competent to teach the course. Regulator review and approval is optional but is not required. xvii. “Licensee”- shall mean a licensed insurance producer, independent adjuster, public adjuster or bail agent who is required to comply with the continuing education requirements set forth in the Mississippi Code. xviii. “License period”- shall mean the period of time the current license is effective. xviii. “Limited Surety Agent”- shall mean any individual who is appointed by an insurer by power of attorney to execute or countersign bail bonds in connection with judicial proceedings, and who is duly licensed by the commissioner to represent such insurer for the restricted lines of bail, fidelity and surety, after successfully completing a limited examination by the department for the restricted lines of business. xix. “Online Course”- An asynchronous/non-contact program of study where activities and information are delivered in a recorded, streaming, or multimedia format that concludes with an examination/assessment. Course may alternatively require frequent interaction with courseware as a condition of progressing through the course material, with chapter/section quizzes providing continuous feedback on learning. Personally identifiable information (e.g., username, password, email) and interactivity. xx. “Personal surety agent”- shall mean any individual who, having posted the necessary qualification bond with the commissioner as required by Section 8339-7, and duly licensed by the commissioner, may execute and sign bail bonds in connection with judicial proceedings. xxi. “Proctor”- A disinterested third party, with minimum age of 18 years old who can be any person except for family members or individuals who have a financial interest in the student’s success on the exam. Co-worker proctors must not be above or below in the student’s line of supervision. xxii. “Proctor Affidavit/Certification”- When a student successfully completes a self-study final exam, the proctor must sign an affidavit/certification attesting that the student completed the exam without assistance from any person, course material, or reference material. In addition, proctors must provide their name, address, and phone number to the exam provider. Affidavits/certifications may be administered and signed electronically.

4|Page MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

xxiii. “Professional bail agent” – shall mean any individual who shall furnish bail, acting as a licensed personal surety agent or as a licensed limited surety agent representing an insurer. xxiv. “Professional Designation Course”- a course that is part of a nationally recognized professional designation. Credit hours are equivalent to hours assigned to the same classroom course material. xxv. “Provider”- shall mean the person or entity submitting an application or renewal or offering an approved course for continuing educational credit. xxvi. “Soliciting bail agent” – shall mean any person who, as an agent or employee of a professional bail agent, or as an independent contractor, for compensation or otherwise, shall solicit, advertise or actively seek bail bond business for or on behalf of a professional bail agent and who assists the professional bail agent in presenting the defendant in court when required or assists in the apprehension and surrender of the defendant to the court or keeps the defendant under necessary surveillance. xxvii. “Self-Study”- shall mean education which either fully or in part is correspondent in nature or without classroom instruction. Course activities or information delivered outside of real time (recorded or otherwise similarly accessible) and available at any time, such as but not limited to correspondence, online training, video, audio, CD or DVD (see CER form). Student attendance is verified based on identity (e.g., username, password, email, and signature) and successful completion of knowledge assessments or an examination. Self-study courses do not require interaction with instructors. xxviii. “Supervised examination”- shall mean a timed, closed book examination which meets the criteria set forth herein and is monitored by a disinterested third party and graded by a nationally recognized insurance education program. xxix. “Teleconference” (a.k.a. video conference or Web conference)- A type of classroom study featuring the live exchange of information among several persons who are remote from one another but linked by telecommunications and featuring audio, video, and/or data-sharing and offering opportunities for learner/instructor/facilitator interaction. A synchronous program of study having a specific start time and end time that validates student attendance through personally identifiable information (e.g., username, password, email) and interactivity. Credit for course is based on attendance and activity, not examination. xxx. “Virtual Class/Webinar”- A type of classroom study that is instructor-led, delivered using the Internet to remote attendees, with a specific start time and end time, in which students enroll before gaining access to the instructor, information and course activities. Student attendance is monitored and validated based on personally identifiable information (e.g., username, password, email) and student participation in interactive exercises is required. Credit for course is based on attendance and activity, not examination. 5|Page MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

SECTION 3: LICENSEE REQUIREMENT

A.

PRE-LICENSING EDUCATION

I. Insurance Producers shall satisfactorily complete twenty (20) hours of prelicensing education per line of authority. II. Independent Adjusters and Public Adjusters shall satisfactorily complete twenty (20) hours of prelicensing education per line of authority: Property & Casualty including Workers Compensation (20), and Workers Compensation only (20), Public Adjuster (20) or demonstrate to the Commissioner that he has had experience or special education or training with reference to the handling of loss claims under insurance contracts of sufficient duration and extent to make him competent to fulfill the responsibilities of an Independent Adjuster or Public Adjuster. III. Professional bail agents, Soliciting bail agents and Bail Enforcement agents shall satisfactorily complete forty (40) hours of prelicensing education. IV. Prelicensing course completions should be submitted within five (5) calendar days of the course completion date. Reporting exceptions may be received on a case by case basis. V.

Pre-Licensing education requirements do not apply to:

i. An individual that is exempt from taking the written examination as provided in Miss. Code Ann. § 83-17-39(1), § 83-17-67, §83-17-407, §83-17-417, § 83-17-507 through § 83-17-511, and §83-39-3. ii. An individual who has received a bachelor’s degree with major course work in insurance from an accredited institution of higher learning. iii. An individual holding a current and valid CEBS, CHFC, CIC, CFP, CLU, FLMI, LUTCF designation is exempt for the life line of authority. iv. An individual holding a current and valid RHU, CEBS, REBC, HIA designation is exempt for the accident and health or sickness line of authority. v. An individual holding a current and valid AAI, ARM, CIC, CPCU designation is exempt for the property and casualty lines of authority. vi. Limited lines insurance producer and limited lines credit insurance producer as defined in Section § 83-17-53. vii. An individual that is seeking licensure for the variable life and variable annuity products line of authority only. 6|Page MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

viii. A professional bail agent, bail solicit agent or bail enforcement agent licensee who applies for a different category of license if the prior license has remained in effect without any action taken against it and the applicant has successfully completed the continuing education requirements under §83-39-3 for all periods between the completion of the prelicensing education and the submission of the application for a license in a different category. B.

CONTINUING EDUCATION

I. Insurance Producers, independent adjusters and public adjusters whose license has been in effect for a license period of eighteen (18) months or less shall satisfactorily complete twelve (12) hours of study in approved continuing education courses in which the producer holds a line of authority, in order to become eligible to renew their license. II. Insurance Producers, Independent Adjusters and Public Adjusters whose license has been in effect for a license period of nineteen (19) to twenty four (24) months shall satisfactorily complete twenty-four (24) hours of study in approved continuing education courses in which the licensee holds a line of authority, of which three (3) hours shall have a course concentration in ethics, in order to become eligible to renew their license. III. Professional Bail Agents, Soliciting Bail Agents and Bail Enforcement Agents shall complete sixteen (16) hours of study in approved continuing education courses for bail. Eight (8) hours of continuing education are required for each year or part of a year of the two-year license period. i. There shall be no continuing education required for Professional Bail Agents, Soliciting Bail Agents and Bail Enforcement Agents for the first year of an original license. ii. There shall be no continuing education required for renewal of a bail agent license for any applicant who is sixty-five (65) years of age and who has been licensed as a bail agent for a continuous period of twenty (20) years immediately preceding the submission of the application as evidenced by submission of an affidavit, under oath, on a form prescribed by the department. IV. Licensees may repeat courses, but will receive credits only once when the course is repeated during the same license period. V. Licensees will receive credit hours for courses only if the course is taken during the license year in which the credit is to be used. Carryover hours are not permitted.

7|Page MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

VI. Any course requiring an examination will not be considered complete until the licensee is notified of the examination results and has achieved a passing score. VII. Each licensee shall maintain a record of continuing education certificates or course completions for a period of no less than five (5) years. VIII. The continuing education requirements do not apply to persons exempt under Miss. Code Ann. § 83-17-251 (4) and non-resident independent adjusters and non-resident public adjusters exempt under §83-17-407 and §83-17-507. IX. The continuing education requirements do not apply to bail agents exempt under Miss. Code Ann. § 83-39-3(8). X. Licensees are responsible for ensuring they have complied with all educational requirements prior to selling flood, annuities or long term care insurance. XI. Licensees may obtain www.sircon.com/mississippi

a

free

continuing

education

transcript

at

SECTION 4: COURSE APPROVAL

Credits will only be awarded for courses whose subject matter will increase knowledge of insurance principles, practices, administration, coverage, laws or regulations. Credits will not be awarded for topics such as personal improvement, motivation, time management, supportive office skills or other matters not related to insurance. Credits will also not be awarded for general sales and/or marketing courses. Once approved, a course may not be substantially altered. A substantial alteration is any change that would modify the content of time allocations stated on the course syllabus or would change any of the course topics. Providers may not change a course’s content or outline without resubmitting the course for approval. SECTION 5: COURSES DEEMED BY THE COMMISSIONER TO MEET THE STANDARDS SET FORTH IN M ISS . CODE A NN. § 83-17-253, § 83-17-417,

All courses deemed to meet the standards of the Commissioner must be submitted for approval as set forth herein. 8|Page MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

Educational programs which are acceptable for credit in achieving or maintaining one of the following insurance designations, are deemed to meet the standards set forth in Miss. Code Ann. § 83-17-253 and § 83-17-417: Life line of authority credit: Certified Employee Benefits Specialists (CEBS) Chartered Financial Consultant (ChFC) Certified Insurance Counselor (CIC) Certified Financial Planner (CFP) Chartered Life Underwriter (CLU) The Fellow, Life Management Institute (FLMI) Life Underwriter Training Council Fellow (LUTCF) Registered Health Underwriter (RHU) Registered Employee Benefits Consultant (REBC) Health Insurance Associate for Health Line of Authority (HIA) Property and Casualty line of authority credit: Accredited Advisor in Insurance Program (AAI) Associate in Risk Management (ARM) Chartered Property and Casualty Underwriter for Property and Casualty Lines of Authority (CPCU) Certified Insurance Counselor (CIC) Independent Adjuster line of authority credit: 1. Associate in Claims (AIC) 2. Certified Self-Insured Workers Compensation Professional (CSIWCP) (workers compensation only) 3. Accredited Claims Adjuster (ACA) 4. Certified Claims Adjuster (CCA) 5. Chartered Property Casualty Underwriter (CPCU) from the American Institute for Chartered Property Casualty Underwriters 6. Professional Claims Adjuster (PCA) from the Professional Career Institute All Lines of Authority: 1. Any designated insurance course taught by an Institution of Higher Learning, per credit hour granted. These courses may only be submitted for credit during the same license period in which the credit was given for completion of the course by the provider.

SECTION 6: CALCULATION OF C REDIT HOURS 9|Page MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

The following standards will be used to evaluate courses submitted for prelicensing and continuing educational approval: I. General Requirements for All Courses i. Courses of less than one (1) hour will not be evaluated for continuing education credit hours. ii.

Courses will not be approved for less than one (1) credit hour.

iii. One credit hour will be awarded for each fifty (50) minutes of classroom instruction. iv.

Courses will only be approved for whole credit hours.

v. Courses that are part of a nationally recognized professional insurance designation, named herein, will be approved for equivalent hours assigned to the same classroom course material. vi. Course providers must properly monitor participants for attendance and attentiveness. vii. Providers shall make all pre-licensing education course materials available before the commencement of the course to all persons who pre-register for the course. viii. Require each person to enroll and pay for the course before having access to the course materials. ix. Providers are required to inform the Department via Sircon Compliance Express of the date, time, and location of each classroom session, conference and/or convention, ten (10) calendar days or shorter in advance of the course offering date. x. Providers are required to report to the Department via Sircon Compliance Express a course completion roster within fifteen (15) calendar days of the course completion date. Reporting exceptions may be received on a case by case basis. xi. Distance learning (facilitated) qualifies only when a qualified instructor is available to respond to questions and to maintain attendance records and attentiveness. xii. Courses will not be approved for partial self-study, unless sixty percent (60%) or more of the course has been approved for classroom credit.

10 | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

xiii. Providers may issue course completion certificates to students electronically, once the student has met all requirements herein. xiv. materials.

Providers must have approval from the owner to use copyrighted

II. Courses providing for self-1.study in part or in its entirety (Correspondence, Online Training (self study), and Video/Audio/CD/DVD, Home Study): A.

Calculation of Hours

i. Word Count/Difficulty Level To calculate the number of credit hours: Divide the total number of words in the study materials and test materials by 180 (documented average reading time) = number of minutes to read material. Divide the number of minutes by 50 = credit hours. Multiply the number of hours by 1.00 for a basic level course, 1.25 for an intermediate level, 1.50 for an advanced course for additional study time = total number of credit hours. (fractional hours rounded up if .50 or above and rounded down if .49 or less) Course difficulty level is identified by the CE provider on the CER form and should be based on the NAIC CE Standardized Terms-Definitions for basic, intermediate and advanced course difficulty levels. B.

Final Assessment (Examination) Criteria

i. All courses which contain an element of self-study in part shall require successful completion (minimum score of seventy percent (70%) of a closed-book examination, monitored by a disinterested third party, for course credit to be awarded. ii. The examination must consist of a minimum of ten (10) questions for courses approved for self-study for one (1) credit hour course with additional five (5) questions for each subsequent credit hour and a score of 70% or greater. iii. Each course shall have at least enough questions to fashion a minimum of two versions with at least fifty percent (50%) of questions being new/different in each subsequent version. Additionally there shall be an inability to access, print, or to launch the exam prior to reviewing the material. iv. Time spent completing the final assessment should not be used in calculation of CE credit hours. v. All courses which are entirely self-study shall require successful completion (minimum score of seventy percent (70%) of a closed-book 11 | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

examination or multiple examinations, monitored by a disinterested third party, for course credit to be awarded. vi. The examination must consist of a minimum of ten (10) questions for courses approved for self-study for one (1) credit hour course with additional five (5) questions for each subsequent credit hour and a score of 70% or greater. vii. Each examination shall have at least enough questions to fashion a minimum of two versions with at least fifty percent (50%) of questions being new/different in each subsequent version. Additionally there shall be an inability to access, print, or to launch the exam prior to reviewing the material. viii. Time spent completing the final assessment should not be used in calculation of CE credit hours. C. Courses

Additional Requirements for Self-Study (in-part or entirely) i.

Prevent access to the course exam before a review of course

ii.

Prevent downloading of any course exam.

materials.

iii. Provide review questions at end of each unit/chapter and prevent access to the next unit/chapter until review questions are answered. (Courses which are entirely self-study only) iv. Provide unit/chapter questions. v.

final

exam

questions

that

do

not

duplicate

Prevent alternately accessing course materials and course

exams. vi. Prevent the issuance of a monitor/disinterested third party affidavit until course and course examination is successfully completed. vii. Monitor/disinterested third party affidavit may be submitted electronically to the education provider. viii. Technical support/provider representative should be available during business hours and response provided within 24 hours of initial contact. ix. Instructors/subject matter experts must be available to answer student questions during provider business hours. D.

Interactive Course Content 12 | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

i. Elements included in the online course, in addition to text, such as video, animation, interactive exercises, quizzes, case studies, games and simulations. ii. Interactive elements should be applicable to course material and facilitate student learning. iii. Only mandatory interactive elements should be included in the calculation of the CE credit hours. iv. Calculation of CE hour credits should be based on the run time of the interactive elements. v. CE providers will indicate run time of the interactive elements in the course content and upon request provide access to the state for review of the course. SECTION 7: COURSE APPROVAL PROCESS

1. Any individual, school, insurance company, insurance industry association, or other organization intending to provide classes, seminars or other forms of instruction as approved courses will apply on forms provided by the Commissioner. The applicant provider will provide the requested number of copies of detailed outlines of the subject matter to be covered, copies of any and all handouts to be distributed, a complete set of exam questions, a current email address for an individual responsible for the provider’s compliance, and other information requested by the Commissioner or his designated evaluation educational administrator to support the request for approval. The Commissioner reserves the right to require all applications to be submitted electronically through SIRCON’s compliance express or a contracted vendor. 2. To become an approved provider, a provider application must be electronically submitted to the Mississippi Insurance Department via SIRCON or contracted vendor. A provider must be approved by the department prior to submitting any course submissions. 3. The detailed outline shall include a statement of the training method used to determine whether there will be meaningful attainments of education by licensees to be certified upon their satisfactory completion of the course. Such method may be in the form of a written examination, a written report, certification of attendance (classroom only), or other methods approved by the Commissioner or his designated evaluation education administrator. The outline shall describe the method of presentation. a. Applicants using a CER form which was previously approved by their home state do not have to comply with provisions (1), (2) and (7)(e) of this 13 | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

section. Credit will be given for the hours approved by the home state on an equal basis unless they violate Mississippi law. The applicant shall submit 1. A copy of the CER form filed and approved by their home state 2. $50.00 filing fee 3. A schedule of dates, beginning and ending times and course location. Schedules shall be submitted at least ten (10) days in advance of any subsequent course offering. 4. All providers shall maintain a record of persons attending each course for not less than five (5) years. Beginning November 1, 2009, all providers should provide proof of successful course completions to the Commissioner using SIRCON’s Compliance Express within fifteen (15) working days of the completion of the course by the licensee. The electronic submission of this information by the provider shall satisfy the requirement of the licensee set forth in Miss. Code Ann. § 83-17-257 (1). In addition, all providers shall provide certificates of completion with hours earned to students upon their successful completion of each course. The certificate shall indicate the course identification number as assigned by the Commissioner of Insurance or his designee. 5. Course applications and accompanying information should be received by the Commissioner or his designated evaluation educational administrator at least thirty (30) days prior to the intended beginning date of the course. Continuing Education course applications must be electronically submitted to the Mississippi Insurance Department via SIRCON or contracted vendor. Prelicensing course applications must be submitted by paper only. 6. The Commissioner or his designated evaluation pre-licensing and continuing educational administrator will approve or deny the application and indicate the number of credit hours the course has been awarded. 7. If a course approval application is denied, an electronic explanation for such denial will be furnished to the provider. 8. Request for course approval must include all of the following forms and attached information: a. b. c. d.

e.

Request for approval form $50.00 filing fee per course A detailed course content outline with instruction hours assigned to the major topics. Schedule of dates, beginning and ending times and course locations. Schedules shall be submitted electronically via SIRCON or contracted vendor at least ten (10) working days in advance of any subsequent course offering. A complete set of examination questions with answers for each course, if applicable.

14 | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

9. The Commissioner may waive any part of this section for programs offered by the college and universities under the Institution of Higher Learning for the State of Mississippi or the Mississippi Community College Board of Trustees, or programs offered by federal or state governmental agencies or affiliates. 10. Each course will be approved for a two (2) year period terminating at the end of the month in which it was approved. The Mississippi Insurance Department will provide a course renewal notice two months prior to a courses expiration date. A renewal fee must be electronically submitted to the Mississippi Insurance Department via SIRCON prior to a course expiration date for a course renewal to be effective. If the course material changes in any substantial manner, a new course application must be submitted for approval as set forth herein 11. All courses are subject to monitoring by the Commissioner or his designated appointee. 12. Course must be held in a facility that complies with the American with Disabilities Act. SECTION 8: RECOMMENDED I NSTRUCTOR QUALIFICATIONS

The Commissioner, his designee or his pre-licensing and continuing educational advisory committee will no longer grant formal approval to instructors. PreLicensing and continuing education providers are required to ensure that all instructors are qualified. The following are recommended qualifications: 1. Three years of experience related to the business of insurance, as a fulltime employee or representative in the property/casualty or life/health/accident industry and a designation of at least one of the following: a. b. c. d. e. f. g. h. i. j. k. l. m. n. o.

Charted Property/Casualty Underwriter (CPCU) Associated Programs of the Insurance Institute of America Certified Insurance Counselor (CIC) College Degree with a major in an Insurance field of study Charted Life Underwriter (CLU) Chartered Financial Consultant (ChFC) Registered Health Underwriter (RHU) Life Underwriter Training Council Fellow (LUTCF) Charted Employee Benefits Specialists (CEBS) Certified Financial Planner (CFP) The Fellow, Life Management Institute (FLMI) Registered Employee Benefits Consultant (REBC) Health Insurance Associate (HIA) Accredited Advisor in Insurance Program (AAI) Associate in Risk Management (ARM)

15 | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

2. Five years of experience as a full-time employee or representative, interpreting or explaining insurance policy contracts in his or her respective field of knowledge. 3. Five years of experience related to the business of insurance and a full-time salaried employee of an insurance company who is sponsoring the course. 4. College and University instructors who are full-time or adjunct faculty of an accredited College or University. These persons may only teach a curriculum course in their field of expertise. 5. A licensed attorney with three years experience related to the business of insurance and who is a member of the Mississippi Bar Association. 6. Three years of experience: investigating or adjusting insurance claims or other relevant work experience which would assist an adjuster in performing his or her job duties. SECTION 9: CREDIT FOR INSTRUCTORS

Continuing educational credit shall be allowed for service as an instructor of certified programs at any program for which participants are eligible to receive continuing education credit. Credit for such service shall be awarded on the first presentation only unless a program has been substantially revised. SECTION 10: ADVERTISING

1. Courses may not be advertised unless they have been approved by the Commissioner or his designated evaluation pre-licensing and continuing educational administrator in writing. 2. When a course has been approved for credit hours and is advertised as such, the advertisement will include: a. The number of approved credit hours; b. The type of license for whom the course would be most applicable; and c. All fees and associated expenses. 3. Advertisements shall be complete, truthful, clear and concise, and not deceptive or misleading. 4. Advertisements will not be approved by the Department and will be discarded if submitted to the Department for approval. SECTION 11: ATTENDANCE 16 | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

The licensee must attend one hundred percent (100%) of the course and be attentive to receive credit. If a course is cancelled by the provider, the provider shall refund the full course fee to the licensee within thirty (30) days. The provider may not establish a “no refund” policy for courses canceled by the provider. Providers must maintain accurate attendance records for each course. Providers must obtain all licensees’ signatures on a sign-in sheet for courses offered in a physical classroom environment. SECTION 12: HARDSHIP

A licensee may appeal for relief to the Commissioner or his designee for hardship situations. The Commissioner or his designee, upon written request, may grant exception to or extent the time in which a licensee must comply with the continuing educational requirements for reasons of poor health, military service or other reasonable and just causes. SECTION 13: SANCTIONS FOR NON-COMPLIANCE The Commissioner may take action pursuant to the provisions of Miss. Code Ann. § 83-17-261, § 83-17-421, § 83-17-519, § 83-39-3 for any violation of these guidelines and/or the relevant provisions of the Mississippi Code as it pertains to continuing education. Course providers are responsible for the actions of persons conducting, supervising, instructing, proctoring, monitoring, moderating, or facilitating their courses. Course providers must agree that employees of the Department and/or its designees, in an official capacity, may audit classroom and self-study course instruction, course materials, instructor’s presentations, course records, records of examination, attendance rosters and other aspects of instruction. These auditors will not be interfered with while conducting or attempting to conduct an audit. Audits will be conducted with minimal disruption. Providers agree that auditors may attend the course offered for the purposes of the audit without paying any fee. Providers grant the Department and/or its designees the right to audit and/or inspect these records at the premises of the provider or at the physical location of such records.

17 | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

SECTION 14: RESERVATION OF RIGHTS

The Commissioner, pursuant to Miss. Code Ann. § 83-17-253 (6), reserves the right to approve or disapprove continuing educational credit claimed. Pursuant to Miss. Code Ann. § 83-17-415, § 83-17-513, § 83-39-3 the Commissioner shall adopt a procedure of certifying continuing education programs. The Commissioner also reserves the right to waive any standard set forth herein. SECTION 15: EFFECTIVE DATE

The effective date of the updated guidelines shall be the first day of July, 2016. Respectfully submitted,

_____________________________________

Mike Chaney Commissioner of Insurance State of Mississippi

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APPENDIX: PROVIDER PACKET

i|Page MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

APPENDIX TABLE OF CONTENTS SECTION 1: CONTINUING EDUCATION COURSE C OMPLETION CERTIFICATE SECTION 2: PRE-LICENSING EDUCATION C OURSE COMPLETION C ERTIFICATE SECTION 3: AFFIDAVIT OF PERSONAL RESPONSIBILITY/ AFFIDAVIT COMPLETION SECTION 4: PRELICENSING EDUCATION COURSE CONTENT OUTLINE ALLOCATIONS SECTION 5: CONTINUING EDUCATION COURSE C ONTENT ALLOCATIONS

OF

E XAM

WITH

OUTLINE WITH

TIME

TIME

SECTION 6: NAIC U NIFORM CONTINUING EDUCATION RECIPROCITY COURSE FILING FORM SECTION 7: NAIC CONTINUING EDUCATION RECOMMENDED GUIDELINES COURSES (ADOPTED BY THE NAIC SPRING 2015)

FOR ONLINE

SECTION 8: NAIC COURSE GUIDELINES FOR CLASSROOM WEBINAR/WEBCAST DELIVERY (ADOPTED BY THE NAIC APRIL 27, 2014)

ii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

SAMPLE

MISSISSIPPI INSURANCE DEPARTMENT CONTINUING EDUCATION COURSE COMPLETION CERTIFICATE THIS CERTIFICATE OF C OMPLETION WILL BE ACCEPTED AS EVIDENCE THAT THE PERSON HEREIN HAS COMPLIED WITH THE CONTINUING EDUCATION REQUIREMENTS MANDATED BY THE COMMISSIONER OF INSURANCE FOR THE S TATE OF M ISSISSIPPI :

__________________________________________________________ NAME OF THE APPROVED EDUCATION PROVIDER ________________________ NAME OF LICENSEE

_________________________ LICENSE NUMBER

_________________________________________________________________________________ COURSE TITLE ________________________ COURSE ID ________________________ COURSE COMPLETION DATE

________________________ CREDIT HOURS EARNED

_________________________________________________ SIGNATURE OF AUTHORIZED TRAINING REPRESENTATIVE

_______________________ DATE

________________________________________________ SIGNATURE OF LICENSEE

_______________________ DATE

THE EDUCATION PROVIDER IS REQUIRED TO SEND A RECORD OF THIS COURSE COMPLETION TO THE M ISSISSIPPI INSURANCE D EPARTMENT ELECTRONICALLY WITHIN FIFTEEN (15) DAYS OF THE COURSE COMPLETION RETAIN THIS CERTIFICATE FOR YOUR RECORDS ONLY

iii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

SAMPLE

MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING EDUCATION COURSE COMPLETION CERTIFICATE THIS CERTIFICATE OF C OMPLETION WILL BE ACCEPTED AS EVIDENCE THAT THE PERSON HEREIN HAS COMPLIED WITH THE PRE -LICENSING EDUCATION REQUIREMENTS MANDATED BY THE COMMISSIONER OF INSURANCE FOR THE S TATE OF M ISSISSIPPI : __________________________________________________________ NAME OF THE APPROVED EDUCATION PROVIDER ________________________ NAME OF APPLICANT

_________________________ SOCIAL SECURITY N UMBER

_________________________________________________________________________________ COURSE TITLE ________________________ COURSE ID ________________________ COURSE COMPLETION DATE

________________________ CREDIT HOURS EARNED

_________________________________________________ SIGNATURE OF AUTHORIZED TRAINING REPRESENTATIVE

_______________________ DATE

________________________________________________ SIGNATURE OF APPLICANT

_______________________ DATE

THE EDUCATION PROVIDER IS REQUIRED TO SEND A RECORD OF THIS COURSE COMPLETION TO THE M ISSISSIPPI INSURANCE D EPARTMENT ELECTRONICALLY WITHIN FIVE (5) DAYS OF THE COURSE COMPLETION RETAIN THIS CERTIFICATE FOR YOUR RECORDS ONLY

iv | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

SAMPLE

STATE OF MISSISSIPPI AFFIDAVIT OF PERSONAL RESPONSIBILITY I AFFIRM THAT I PERSONALLY COMPLETED THE ENTIRE STUDY MATERIAL OF THE COURSE. I ALSO CONFIRM THAT I COMPLETED THE EXAM WITHOUT ASSISTANCE FROM ANY COURSE MATERIAL, OTHER SOURCE MATERIAL , OR FROM ANY PERSONS. I UNDERSTAND IT IS MY RESPONSIBILITY TO MAINTAIN MY C ERTIFICATE OF COMPLETION AS REQUIRED BY THE MISSISSIPPI INSURANCE DEPARTMENT . ______________________________ SIGNATURE OF STUDENT

___________________________

______________________________________ PRINTED NAME OF S TUDENT

___________________________ SOCIAL SECURITY N UMBER

__________________ DATE

__________________________ EMAIL ADDRESS

LICENSE NUMBER

_________________________ DAYTIME PHONE NUMBER

AFFIDAVIT OF EXAM COMPLETION I CERTIFY THAT I VERIFIED THE IDENTIFICATION OF THE STUDENT. IN ADDITION, I PERSONALLY OBSERVED THE FINAL EXAMINATION AND CERTIFY THAT IT WAS COMPLETED WITHOUT ASSISTANCE OR OUTSIDE HELP OF ANY KIND .

__________________________ NAME OF S TUDENT

________________________________________ COURSE NAME

________________________________________________________________________________________ PHYSICAL ADDRESS WHERE EXAM WAS TAKEN __________________________ DATE OF EXAMINATION

__________________ B EGINNING TIME

__________________ ENDING TIME

TYPE OF MONITOR: DISINTERESTED THIRD PARTY A DISINTERESTED THIRD PARTY IS DEFINED AS A LICENSED INSURANCE PRODUCER, INDEPENDENT ADJUSTER , PUBLIC ADJUSTERS , BAIL AGENT OR A PERSON WITH NO FAMILY OR FINANCIAL RELATIONSHIP TO THE STUDENT . _____________________________________ PRINTED NAME OF THE M ONITOR

__________________________________ JOB TITLE OF THE MONITOR

_____________________________________ NAME OF MONITOR’S EMPLOYER

__________________________________ BUSINESS PHONE NUMBER

_________________________________________________________________________________________ BUSINESS MAILING ADDRESS ___________________________________________ SIGNATURE OF MONITOR

__________________________________ DATE

v|Page MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

SAMPLE PE COURSE CONTENT OUTLINE INCLUDING TIME ALLOCATIONS COURSE NAME: LIFE INSURANCE PRE-LICENSING COURSE SELF STUDY: (4 HOURS (200 MINUTES ) OF SELF-STUDY PRIOR TO COURSE COMMENCEMENT ) READ UNITS 1-6 DAY ONE (CLASSROOM ) 8:00-9:40 (100 MINUTES ): 1- INTRODUCTION TO INSURANCE PRINCIPLES AND CONCEPTS  THE ROLE OF INSURANCE o THE NEED FOR ECONOMIC CERTAINTY AND SECURITY o INSURANCE AS A PRACTICAL SOLUTION o INSURANCE CONCEPTS AND PRINCIPLES  DETERMINING PROPER INSURANCE AMOUNTS o USES OF LIFE INSURANCE o RATE MAKING (PREMIUM ) CONCEPTS o TYPES OF INSURERS o INSURANCE AS A LEGAL CONTRACT UNIT 1- QUIZ (10 QUESTIONS ) UNIT

9:40-10:00 (0 MINUTES ): BREAK 10:00-11:40 (100 MINUTES ): UNIT 2- INTRODUCTION TO LIFE INSURANCE AND POLICY TYPES  INTRODUCTION TO LIFE INSURANCE o PURPOSE OF LIFE INSURANCE  TYPES OF LIFE INSURANCE POLICIES o TYPES OF POLICIES  ANNUITIES o ANNUITY PRINCIPLES o CLASSIFICATION OF ANNUITIES UNIT 2 QUIZ (10 QUESTIONS ) 11:40-1:00 (0 MINUTES ): LUNCH 1:00-2:40 (100 MINUTES ): UNIT 3- LIFE INSURANCE POLICY PROVISIONS , RIDERS , OPTIONS AND EXCLUSIONS

   UNIT

POLICY BENEFIT RIDERS COMMON POLICY PROVISIONS AND OPTIONS COMMON POLICY EXCLUSIONS

3 QUIZ (10 QUESTIONS )

2:40-3:00 (0 MINUTES ):

BREAK vi | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

3:00-4:40 (100 MINUTES ): UNIT 4- APPLICATION, UNDERWRITING AND POLICY DELIVERY  PRODUCERS , SALES, PRACTICES AND COMPLETING THE APPLICATION o PRINCIPLES OF AGENCY LAW o CATEGORIES OF PRODUCERS o THE APPLICATION FOR INSURANCE AND THE PRODUCER’S ROLE

UNIT



THE PRODUCER ’S RESPONSIBILITIES o DISCLOSURES AT POINT OF SALE o DELIVERING THE POLICY o EXPLAINING THE POLICY AND ITS PROVISIONS , RIDERS , EXCLUSIONS AND RATINGS TO THE CLIENT o MAINTAINING RECORDS



LIFE INSURANCE UNDERWRITING o INSURABLE INTEREST o THE APPLICATION o MEDICAL INFORMATION AND CONSUMER REPORTS o FAIR CREDIT REPORTING ACT o RISK CLASSIFICATION o OTHER UNDERWRITING CONCEPTS o CONSUMER PRIVACY o FRAUD AND FALSE STATEMENTS ACT /USA PATRIOT ACT

4 QUIZ (10 QUESTIONS )

DAY TWO (CLASSROOM ) 8:00-9:40 (100 MINUTES ): UNIT

5- TAXES , RETIREMENT PLANS , AND OTHER INSURANCE CONCEPTS  THIRD-PARTY OWNERSHIP o ESTABLISHMENT OF THIRD-PARTY OWNERSHIP o INSURABLE INTEREST o TRANSFER OF VALUE RULE  GROUP LIFE INSURANCE o GROUP LIFE INSURANCE CHARACTERISTICS o CONVERSION PRIVILEGE (OPTION) o CONTRIBUTORY VS . NONCONTRIBUTORY PLANS o TYPES OF GROUP LIFE INSURANCE o ELIGIBILITY OF GROUP MEMBERS o GROUP LIFE STANDARD PROVISIONS o GROUP CREDIT LIFE INSURANCE o CREDIT LIFE INSURANCE o FRATERNALS o INDUSTRIAL LIFE

9:40: 10:00 (0 MINUTES ): BREAK 10:00-11:40 (100 MINUTES ): UNIT 5 CONTINUED: vii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

UNIT



RETIREMENT PLANS o TAX-QUALIFIED PLANS o TYPES OF QUALIFIED PLANS o NONQUALIFIED PLANS



BUSINESS INSURANCE o KEY-EMPLOYEE (PERSON) LIFE INSURANCE o BUY AND SELL AGREEMENTS o SPLIT -DOLLAR INSURANCE o BUSINESS CONTINUATION AND LIFE INSURANCE o EXECUTIVE BONUS (SECTION 162) PLAN o USE OF ANNUITIES



SOCIAL SECURITY BENEFITS o SOCIAL SECURITY DEATH BENEFITS o SOCIAL SECURITY DEFINITION o GOVERNMENT LIFE INSURANCE PROGRAMS



TAX TREATMENT OF INSURANCE PREMIUMS PROCEEDS o PREMIUMS o PROCEEDS o CASH VALUES o 1035 EXCHANGE o TAXATION OF ANNUITIES



OTHER INSURANCE CONCEPTS o MARKETING LIFE INSURANCE o HUMAN LIFE VALUE (HLV ) APPROACH o NEEDS APPROACH o PROGRAMMING LIFE INSURANCE o ESTATE PLANNING o UNISEX LEGISLATION IN LIFE INSURANCE

5 QUIZ (10 QUESTIONS )

11:40-1:00 (0 MINUTES ): LUNCH 1:00-2:40 (100 MINUTES ): UNIT 6- MISSISSIPPI LIFE INSURANCE LAW  MISSISSIPPI LAW AND REGULATIONS PERTAINING TO LIFE INSURANCE o BASIC DEFINITIONS o HOW THE INSURANCE INDUSTRY IS REGULATED o LICENSING o ETHICAL CONDUCT o REPLACEMENT UNIT

2:40-3:00 (0 MINUTES ):

6 QUIZ (10 QUESTIONS ) BREAK

3:00-4:40 (100 MINUTES ): LIFE INSURANCE PRACTICE FINAL EXAMINATION (75 QUESTIONS : STUDENTS MUST SCORE 70% OR BETTER TO RECEIVE CREDIT FOR COMPLETING THE PRE -LICENSING LIFE COURSE ) viii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

TOTAL SELF STUDY MINUTES: 200 (4 hours) TOTAL EXAMINATION GRADED QUESTIONS REQUIRED= 20 TOTAL EXAMINATION GRADED QUESTIONS PROVIDED= 75 TOTAL CLASSROOM MINUTES: 800 (16 hours) TOTAL MINUTES: 1000 1000/50= 20 TOTAL HOURS REQUESTED: 20

ix | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

SAMPLE CE COURSE CONTENT OUTLINE INCLUDING TIME ALLOCATIONS COURSE NAME : INTERMEDIATE CASUALTY

DAY ONE 8:30-9:30 (60 MINUTES):

DISCUSS THE OBJECTIVE OF RISK MANAGEMENT  WHAT IS RISK MANAGEMENT ?  INSURANCE MANAGEMENT VS . RISK MANAGEMENT DISCUSS THE TYPES OF INSURED’S ENTERTAINING RISK MANAGEMENT PROGRAMS

   

WHAT IS THE FOCUS OF THESE INSURED’S? WHAT IS THE FOCUS FOR THE PRODUCER? WHAT IS THE FOCUS FOR THE INSURER? WHAT HAPPENS WHEN WE MATCH THE FOCUS OF BOTH THE INSURED AND PRODUCERS?

REVIEW RISK MANAGEMENT PROCESS 1. IDENTIFY AND ANALYZE EXPOSURE 2. FORMULATE ALTERNATIVES 3. SELECT THE BEST TECHNIQUE AND IMPLEMENT 4. MONITOR RESULTS AND ADJUST AS NECESSARY 9:30-10:15 (45 MINUTES):

STEP 1- EXPOSURE AND CONTROL ANALYSIS  IDENTIFY - DESCRIBE AND GIVE EXAMPLES OF THE ELEMENTS OF A LOSS EXPOSURE

 

ILLUSTRATE EACH OF THE STEPS IN RISK MANAGEMENT EXPLAIN THE CONCEPTS OF PROFITABILITY THAT ARE USEFUL IN RISK MANAGEMENT

 

10:15-10:30 (0 MINUTES):

DISCUSS LOSS FORECASTING EVALUATE- EXPOSURES TO LOSS AND CONTROLS IN PLACE o INCREASE IN FREQUENCY o INCREASE IN SEVERITY  ANALYZE- THREE DIMENSIONS OF LOSS EXPOSURES o SKILLFUL RECOGNITION OF:  A VALUE  A CAUSE OF LOSS  A FINANCIAL CONSEQUENCE  COST TO REPLACE PROPERTY  LOSS OF INCOME  LAWSUITS  MEDICAL , DISABILITY , OR DEATH BREAK

10:30- 11:00 (30 MINUTES ): CASE STUDY #1- EXPOSURE ANALYSIS  EXPOSURE IDENTIFICATION o SURVEYS  REVIEW- THE SIX KEY COMPONENTS OF THE APPLICATION  IDENTIFY - DESCRIBE AND GIVE EXAMPLES OF THE ELEMENTS OF A LOSS EXPOSURE o LOSS HISTORIES

x|Page MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET



IDENTIFY - THE VARIOUS TYPES OF RISK IDENTIFICATION METHODS THAT YOU CAN USE TO DETERMINE LOSS EXPOSURES o LIKELIHOOD OF A LOSS o SERIOUSNESS OF LOSSES o POTENTIAL TOTAL DOLLAR LOSSES o RELIABILITY OF INFORMATION



REVIEW- ELEMENTS OF A LOSS EXPOSURE

11:00- 11:30 (30 MINUTES): CASE STUDY #2- CONTROL ANALYSIS  REVIEW- BACKGROUND INFORMATION OF THE INSURED o MANAGEMENT ATTITUDE o YEARS IN THE BUSINESS o NATURE OF OPERATIONS o HIRING PRACTICES o SAFETY PROGRAMS IN PLACE  INDENTIFY - THE INSURED ’S PRODUCT LIABILITY EXPOSURES o PRODUCT LIABILITY CHECKLIST o FOREIGN SALES EXPOSURES o PRODUCT RECALL EXPENDITURES  ASSESS- THE PRODUCT ’S LIABILITY EXPOSURES o DETERMINE SEVERITY EXPOSURES o DETERMINE ANY RED FLAGS ITEMS  EVALUATE- EXPOSURES TO LOSS AND CONTROLS IN PLACE  REVIEW (AS A GROUP)- CONTROLS IN PLACE 11:30-12:00 (30 MINUTES ): DISCUSS PRODUCTS LIABILITY EXPOSURES  IDENTIFY CHALLENGES OF PRODUCTS LIABILITY o COMPONENT OR END PRODUCTS FROM RAW STOCK o ASSEMBLY OF PRODUCTS PURCHASED FROM COMPONENT o o

PARTS PROCESSING OF PRODUCTS OF OTHERS FOREIGN LIABILITY EXPOSURES



DISCUSS PRODUCTS LIABILITY RESOURCES o FROM POTENTIAL CLIENT o ADVERTISING BROCHURES o CERTIFICATES OF INSURANCE o HOLD HARMLESS AGREEMENTS o PRIOR LOSS HISTORY o RECORD KEEPING o PRODUCT LITERATURE



REVIEW PRODUCTS LIABILITY CHECKLISTS o ITEMS TO CONSIDER AND WHY o QUESTIONS TO ADDRESS  WHAT IS THE PRODUCT ?  HOW IS THE PRODUCT USED?  WHAT MARKETS USE THE PRODUCT ?

12:00-1:00 (0 MINUTES):

LUNCH

1:00-1:45 (45 MINUTES):

STEP 2- LOSS CONTROL AND CLAIMS ANALYSIS  DIFFERENTIATE BETWEEN RISK EVALUATION AND RISK IMPROVEMENT o LOSS CONTROL QUESTIONS  WHAT PRODUCTS ARE MANUFACTURED /DISTRIBUTED BY RISK ?  WHO IS THE ULTIMATE CONSUMER?  WHAT IS THE LIFE CYCLE OF THE PRODUCT?  HOW CAN THESE PRODUCTS CAUSE INJURY OR DAMAGE THROUGH FAILURE OR MISUSE ?

xi | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET



REVIEW INTERNAL AND EXTERNAL RISK CONTROL TECHNIQUES o ACTIVITIES THAT REDUCE THE FREQUENCY AND SEVERITY OF LOSS  PRE-LOSS OBJECTIVES

    

1:45-2:15 (30 MINUTES):

CONTRACTUAL TRANSFER EXPOSURE AVOIDANCE LOSS PREVENTION LOSS REDUCTION

UNDERSTAND SHORT AND LONG TERM LOSS EXPOSURES o HOW LOSS EXPOSURES AFFECT LOSS FORECASTING  PRE-LOSS ASSESSMENT  POST-LOSS ASSESSMENT  CLAIMS MANAGEMENT  DISASTER RECOVERY  COST CONTAINMENT STRATEGIES o FREQUENCY AND SEVERITY ANALYSIS  DETAILS ON LARGE LOSSES  DETAILS ON FREQUENCY OF LOSSES  DISCONTINUED PRODUCTS  SIGNS OF CLASS ACTIONS

CASE STUDY- CLAIMS ANALYSIS  ANALYZE FREQUENCY AND SEVERITY OF LOSSES o DETAILS ON LARGE LOSSES o DETAIL ON FREQUENCY OF LOSSES o DISCONTINUED PRODUCTS o SIGNS OF CLASS ACTIONS  IDENTIFY INTERNAL CONTROLS NOT IN PLACE  IDENTIFY TRENDS IN TYPE OF LOSS o SIMILAR TYPES OF LOSSES  BACK INJURY  SLIP AND FALL  CATASTROPHIC TRAUMA  SOFT TISSUE INJURY  IDENTIFY TRENDS IN PAYMENTS o BODILY INJURY o PROPERTY DAMAGE o MEDICAL o DISABILITY o DEATH  IDENTIFY LOSS CONTROL OPPORTUNITIES o FROM IDENTIFICATION OF INTERNAL CONTROLS NOT IN PLACE



REVIEW (AS A GROUP )- CLAIMS HISTORY AND POTENTIAL LOSS CONTROL OPPORTUNITIES

2:15-2:30 (O MINUTES):

BREAK

2:30-3:30 (60 MINUTES):

FINANCIAL ANALYSIS PROCESS 



DISCUSS PURPOSE OF FINANCIAL ANALYSIS o RECEIVE COMPANY PAYMENT AND REIMBURSEMENT  REDUCE WRITE -OFFS  REDUCE COLLECTION EFFORTS  MAINTAIN PROFITS DEFINE CREDIT EXPOSURE VS. CREDIT RISK o DEFINITION OF CREDIT EXPOSURE  PAYMENT ON ALL FUTURE PREMIUMS xii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET



3:30-4:30 (60 MINUTES):

PAYMENT ON ALL FUTURE LOSSES AND SERVICE FEES



TYPES OF CREDIT EXPOSURE o SECURED CREDIT EXPOSURE o UNSECURED CREDIT EXPOSURE



DISCUSS FINANCIAL DATA QUALITY o AUDITED VS. UNAUDITED o NOTES



FINANCIAL ANALYSIS OF OVERVIEW o BALANCE SHEET o INCOME STATEMENT o CASH FLOW STATEMENT o STATEMENT OF CHANGES IN EQUITY



FINANCIAL RATIOS o PROFITABILITY RATIOS o LIQUIDITY RATIOS o LEVERAGE RATIOS



REVIEW FINANCIAL STATEMENTS FOOTNOTES o COLLATERAL  LETTERS OF CREDIT  CASH  SURETY BONDS

CASE STUDY #1 (PROFITABILITY RATIOS)  INSURED PROFITABILITY  NET INCOME RATIO o INDENTIFY SALES TRENDS o INDENTIFY OPERATING INCOME o REVIEW OVERALL INCOME PROFITABILITY o REVIEW AND DISCUSS THE IMPACT OF THE PERCENTAGE RESULTS

CASE STUDY #2 (LIQUIDITY RATIOS )  INSURED LIABILITY  LIQUIDITY RATIOS o IDENTIFY CASH AND EQUIVALENT BALANCES o CALCULATE QUICK RATIO o CALCULATE CURRENT RATIO o REVIEW AND DISCUSS THE IMPACT OF THE PERCENTAGE RESULTS

4:30-5:00 (30 MINUTES):

CASE STUDY #3 (LEVERAGE RATIOS)  INSURED LEVERAGE  LEVERAGE RATIOS o CALCULATE DEBT RATIO o CALCULATE DEBT TO EQUITY RATIO o CALCULATE EQUITY TO RETAINED EARNINGS RATIO o REVIEW AND DISCUSS THE IMPACT OF THE PERCENTAGE RESULTS

DAY TWO 8:15-9:30 (75 MINUTES):  

AN INTRODUCTION TO RETENTION LEVEL ANALYSIS RETENTION LEVEL ANALYSIS o DISCUSS THE DILEMMA OF RISK RETENTION  IDENTIFY COMMON ISSUES o PRO’S OF RISK RETENTION  INSURANCE PRO ’S  RELIABLE WAY TO TRANSFER RISK xiii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

o



UNDERSTAND HOW TO ANALYZE AND SET RETENTION LEVELS o DIFFICULT TO QUANTIFY o REVIEW LOSS HISTORY OF RISK o REVIEW COST OF INSURANCE



LEARN HOW TO ESTABLISH THE STRUCTURE FOR TOTAL LIMITS NEEDED o SETTING TOTAL LIMITS NEEDS o VARIES BY LINE OF BUSINESS o NEED TO IDENTIFY LOSS EXPOSURES o USE AGGREGATE STOP LOSS WHERE FREQUENCY IS RELEVANT



DETERMINE AMOUNT OF LOSS THE INSURED WILL RETAIN o DETERMINE THE AMOUNT OF LOSSES THE INSURED WILL o o



9:30-9:45 (0 MINUTES):

 TOTAL COST IS PREDICTABLE CON ’ S OF RISK RETENTION  INSURANCE REGULATIONS  ADMINISTRATIVE ISSUES  LONG TERM INSURANCE COSTS MAY BE MORE COSTLY

RETAIN DETERMINE WHAT TYPES OF LOSSES WILL BE RETAINED DETERMINE HOW TO FUND FOR THE LOSSES

DISCUSS THE RISK MAPPING MATRIX AS A TOOL o RISK MAPPING DECISION TREE o LARGE LOSS EXPERIENCE GRAPH o PROPER IDENTIFICATION AND ANALYSIS OF EXPOSURES

BREAK

9:45-10:30 (45 MINUTES):  

AN INTRODUCTION TO RISK FINANCING OPTIONS COMPARISON OF DIFFERENCES BETWEEN GUARANTEE COST / LARGE DEDUCTIBLE/ SIR PROGRAMS / RETROSPECTIVE RATING

o o

o

o

GUARANTEE COST PROGRAM LARGE DEDUCTIBLE PROGRAM  HISTORY /BACKGROUND  PREMIUM IMPACTS  RESIDUAL MARKETS ASSESSMENTS  PREMIUM TAXES SELF - INSURED RETENTION PROGRAM  HISTORY /BACKGROUND  PREMIUM IMPACTS  STATE LICENSING  PREMIUM TAXES RETROSPECTIVE RATING PROGRAM  HISTORY /BACKGROUND  PREMIUM IMPACTS  PREMIUM TAXES

10:30-11:30 (60 MINUTES ): 

INTRODUCTION TO SURPLUS LINES COVERAGE CONCEPTS o ADMITTED CARRIER DEFINED  INSURANCE COMPANY LICENSED WITHIN THE   

STATE FILE RATES WITH THE STATE INSURANCE DEPT . FILE FORMS WITH THE STATE INSURANCE DEPT . GUARANTY / INSOLVENCY FUND

xiv | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

o

o

o o

o

o

o

 LACK OF FLEXIBILITY NON - ADMITTED CARRIER DEFINED  INSURANCE COMPANY NOT REQUIRED TO BE LICENSED WITHIN THE STATE  NOT REQUIRED TO FILE RATES WITH THE STATE INSURANCE DEPT .  NOT REQUIRED TO FILE FORMS WITH THE STATE INSURANCE DEPT .  NOT PROTECTED BY GUARANTY/INSOLVENCY FUND  PROVIDES FLEXIBILITY WITH RATES AND FORMS UTILIZED REVIEW THE DIFFERENCES BETWEEN ADMITTED AND NON ADMITTED PAPER  WHEN YOU WOULD WANT TO USE ADMITTED PAPER  WHEN YOU WOULD WANT TO USE NON -ADMITTED PAPER DISADVANTAGES OF NON -ADMITTED PAPER  TAXES MAY BE IMPOSED ON PREMIUMS DEFINE WHAT “P LANNED ” SELF INSURANCE MEANS  PLANNING A PROGRAM WITH THE USAGE OF SIR ’S OR DEDUCTIBLES  RETENTION VS . UNINSURED LOSS /AN UNPLANNED LOSS DISCUSS SELF INSURANCE LAWS  REVIEW SURPLUS LINES QUICK REFERENCE CHART FOR STATE LAW GUIDELINES UNDERSTAND THE DIFFERENT IMPLICATIONS BASED ON THE DIFFERENT TYPES OF COMPANIES ( I .E . CORPORATIONS ) POINT OUT THE APPLICABLE PREMIUM TAX AND ASSESSMENTS ASSOCIATED WITH SELF - INSURING

11:30-12:30 (O MINUTES):

LUNCH

12:30-2:00 (90 MINUTES):

RISK LOSS FORECASTING  DEFINE WHAT LOSS FORECASTING IS  WHAT DOES LOSS DEVELOPMENT REPRESENT  CALCULATE ULTIMATE LOSSES o REPORTED LOSSES PAID + RESERVES o IBNR PROVISIONS o LOSS DEVELOPMENTS o LATE REPORTED CLAIMS o REOPENED CLAIMS  DEMONSTRATE IBNR DIAGRAM  DISCUSS LOSS TRIANGLES  WHY DO WE NEED TO GO THROUGH THE LOSS DEVELOPMENT PROCESS ?  GOAL OF LOSS FORECASTING o LOSS TRENDING o LOSS DEVELOPMENT  DISCUSS THE RELATIONSHIP BETWEEN LOSS DEVELOPMENT AND LOSS TRENDING

   

WHEN TO FORECAST LOSSES CALCULATION OF LOSS RATE CREDIBILITY OF LOSS RATE EVALUATE RESULTS

xv | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

2:00 -2:15 (0 MINUTES):

BREAK

2:15-2:45 (30 MINUTES):

CASE STUDY #1 (CALCULATION OF ULTIMATE LOSSES )  DATA REQUIREMENTS o LOSS HISTORY o REPORTED LOSSES PAID + RESERVES o CLAIM HISTORY o EXPOSURE HISTORY  POLICY YEAR- LOSSES THAT OCCUR BETWEEN THE POLICY INCEPTION AND EXPIRATION DATES

2:45—3:15 (30 MINUTES):



CALENDAR / ACCIDENT YEAR - LOSSES THAT OCCUR BETWEEN THE CALENDAR YEAR

    

IBNR PROVISIONS LOSS DEVELOPMENT LATE REPORTED CLAIMS REOPENED CLAIMS

REVIEW AND EVALUATE RESULTS OF CASE STUDY

CASE STUDY #2 (LOSS TRENDING AND DEVELOPING  UNDERSTAND THE RELATIONSHIP BETWEEN LOSS DEVELOPMENT AND LOSS TRENDING o LOSS DEVELOPMENT FACTORS- FACTORS APPLIED TO PROJECT THE INCREASE IN LOSSES ARISING OUT OF A GIVEN POLICY YEAR FROM THE TIME AT WHICH THE FIRST LOSS IS INCURRED UNTIL THE LAST CLAIM AGAINST THAT POLICY YEAR IS SETTLED INCLUDING IBNR . o LOSS TREND ADJUSTMENT FACTORS- FACTORS USED TO COMPENSATE FOR CHANGING ECONOMIC CONDITIONS WHICH CAUSE FLUCTUATIONS IN THE COST OF SETTLING CLAIMS  INFLATION FACTORS  NON -INFLATION FACTORS o LOSS DEVELOPMENT TRIANGLES  REOPENED CLAIMS  DATA REQUIREMENTS

   

o

LOSS HISTORY REPORTED LOSSES PAID

+ RESERVES

CLAIM HISTORY

EXPOSURE HISTORY REVIEW AND EVALUATE RESULTS OF CASE STUDY

3:15-3:30 (0 MINUTES):

BREAK

3:30-4:00 (30 MINUTES):

CASE STUDY #3 (CALCULATION OF LOSS RATE)  CALCULATION OF LOSS RATE o PAYROLL o TRENDED PAYROLL o ULTIMATE NUMBER OF CLAIMS o ULTIMATE INCURRED LOSSES o ULTIMATE PAID LOSSES o SELECTED ULTIMATE o TRENDED ULTIMATE o TRENDED AND DEVELOPED LOSSES AT CURRENT o o o 

EXPOSURE FREQUENCY ULTIMATE AVERAGE SEVERITY LOSS RATE

CREDIBILITY OF LOSS RATE

xvi | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

o o o o

ANNUAL LOSS VOLUME NUMBER OF YEARS OF DATA HOMOGENEITY OF THE BUSINESS CONSISTENCY OF THE UNDERLYING EXPOSURES



REVIEW AND EVALUATE RESULTS OF CASE STUDY



LARGE o o o

4:00-5:00 (60 MINUTES):

o

o o

DEDUCTIBLE PROCESS LARGE DEDUCTIBLE DEFINED PREMIUM ELIGIBILITY DEDUCTIBLE TYPES  STANDARD  PRE-FUNDED  CASH EXTENDER FEATURES AND BENEFITS  LOWER PREMIUMS  RESIDUAL MARKET LOADING/STATE ASSESSMENTS  BASKET AGGREGATES EXPENSES ASSOCIATED WITH THE PROGRAM DEDUCTIBLE PREMIUM  FIXED COST



o o

o

  

INSURANCE PREMIUM

 

INCURRED LOSSES

 

BUREAU FEES

AUDIT AND ADMINISTRATION

LOSS CONTROL VARIABLE COSTS PREMIUM TAXES o TAX IMPLICATIONS

OUTSTANDING UNDERWRITING EXPENSE DETERMINING DEDUCTIBLE LEVEL  TREND AND DEVELOPMENT OF INDIVIDUAL LOSSES DETERMINING AGGREGATE LEVEL  WORST YEAR LOSSES  AVERAGE YEAR LOSSES DEDUCTIBLE LIABILITY ENDORSEMENT  STANDARD ENDORSEMENT  APPLIES PER LOSS EVENT  AGGREGATE LIMIT AVAILABLE  REIMBURSEMENT BASIS  CLAIM FUND AGREEMENT

DAY THREE 8:00-8:30 (30 MINUTES): 

REVIEW OF LOSS FORECASTING PROCESS o CALCULATE ULTIMATE LOSSES  REPORTED LOSSES PAID + LOSSES  IBNR PROVISIONS  LOSS DEVELOPMENT  LATE REPORTED CLAIMS  REOPENED CLAIMS



REVIEW LARGE DEDUCTIBLE PROCESS WITH AN EXAMPLE INCLUDING o EXCESS LOSS PREMIUM o UNALLOCATED CLAIM o INSURANCE CHARGE o AUDIT AND ADMINISTRATIVE CHARGE

xvii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

o o o o o 8:30-9:00 (30 MINUTES):

COMMISSION LOSS CONTROL TAXES PROFIT BUREAU

CASE STUDY #1- LARGE DEDUCTIBLE ASSESSMENT  

LOSS EVALUATION AND FORECASTING ILLUSTRATION TO REVIEW



DEFINE SELF INSURED RETENTIONS o A FORMAL RISK FINANCING STRATEGY TO CONTROL THE COST AND ADMINISTRATION OF CLAIMS INTERNALLY TO THE ORGANIZATION o DISCUSS ADVANTAGES OF SELF INSURED RETENTIONS  LONG TERM COST SAVINGS  IMPROVED CASH FLOW ON LOSS PAYMENTS  MARKETPLACE VARIANCE  CLAIMS  INCENTIVES FOR RISK CONTROL o DISADVANTAGES OF SELF INSURED RETENTIONS  INCREASED VARIABILITY  TAX DEDUCTION  REGULATORY BURDEN  SECURITY REQUIREMENTS  SELF ADMINISTRATION

EVALUATE ATTACHMENT POINT AND SET RETENTION LEVEL o WORKERS COMPENSATION LOSS EVALUATION  LOSSES IN EXCESS OF $25,000  CLAIM STATUS  PAID  RESERVED  TOTAL CLAIM  DESCRIPTION OF LOSS o WORKERS COMPENSATION LOSS FORECAST  3 YEAR TOTAL LOSSES  FREQUENCY  3 YEAR ADJUSTED LOSSES  3 YEAR EXPOSURE BASE o QUESTION : WHAT DEDUCTIBLE LIMIT WOULD YOU RECOMMEND ? o QUESTION: WHAT AGGREGATE LEVEL WOULD YOU RECOMMEND ? o REVIEW AND EVALUATE RESULTS OF CASE STUDY

9:00-9:30 (30 MINUTES)

9:30-9:45 (O MINUTES):

BREAK

9:45-10:45 (60 MINUTES) 

SELF INSURED RETENTIONS CONTINUED … o ASSOCIATED COSTS  VARIABLE COSTS  FIXED COSTS  LOSS ADJUSTMENT EXPENSES



HOW THE LIMIT OF LIABILITY IS AFFECTED BY SIR o DIFFERENCES BETWEEN SIR ’S AND DEDUCTIBLES  SIR’S- DO NOT REDUCE THE LIMIT OF LIABILITY AVAILABLE

xviii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

DEDUCTIBLES - DO REDUCE THE LIMIT OF LIABILITY AVAILABLE DEFENSE COSTS  INSIDE THE LIMITS  OUTSIDE THE LIMITS



o 

IMPLEMENTING A SELF INSURANCE PLAN o EVIDENCE OF INSURANCE  OPERATIONAL ADMINISTRATION  RECORD KEEPING  INITIAL APPLICATIONS  ANNUAL FILINGS  APPLICABLE LICENSING  FINANCIAL SECURITY o ADMINISTRATIVE FEES  LOSS CONTROL AND SAFETY  TRAINING AND EDUCATION  CLAIM ADMINISTRATION  THIRD PARTY ADMINISTRATORS  LITIGATION MANAGEMENT



ROLE PLAY /CASE STUDY #1- NEGOTIATING THE APPROPRIATE SIR o REVIEW CASE STUDY AND BE ABLE TO APPLY THE CONCEPTS ABOUT RETENTIONS DISCUSSED  WHAT ARE THE ISSUES THAT THE CLIENT NEEDS TO CONSIDER  WHAT ARE THE KEY ADVANTAGES AND DISADVANTAGES OF CHOOSING SELF INSURANCE AS A RISK FINANCING TOOL o BE ABLE TO DISCUSS AND POSITION MORE THAN ONE OPTIONS TO CHOOSE FROM  IS AN SIR MORE APPROPRIATE FOR THE INSURED IN THE CASE STUDY ?  IS A LARGE DEDUCTIBLE MORE APPROPRIATE FOR THE INSURED IN THE CASE STUDY ? o AFTER COMPLETING YOUR ANSWERS AND COMING UP WITH ALTERNATIVE SOLUTIONS FOR THE INSURED , NOW ROLE PLAY IN TEAMS AND YOUR GOAL IS TO GAIN UNDERSTANDING AND COMMITMENT FROM THE INDIVIDUAL ROLE PLAYING THE “ INSURED ” o REVIEW THE FINDINGS IN THE ROLE PLAY AS A GROUP



EXCESS LIABILITY PROGRAMS o STRAIGHT EXCESS LIABILITY  FOLLOW FORM  HIGHER LIMITS  LOW COST BASIS  FILLING GAPS BETWEEN PRIMARY AND UMBRELLA  COMMON ISSUES o SPECIFIC EXCESS INSURANCE  COVERAGE AT A CHOSEN LOSS LEVEL

10:45-11:15 (30 MINUTES )

11:15-12:00 (45 MINUTES )



  

PER LOSS

 

SITUATION DESIGNED TO COVER

PER OCCURRENCE

PER CLAIM ANNUAL AGGREGATE EXCESS SMALL LOSSES

xix | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET



 SIRS COMBINED SPECIFIC AGGREGATE EXCESS



 ADVANTAGES BASKET AGGREGATE



 AGGREGATE CONCEPT TO MULTIPLE LINES UMBRELLA   

12:00-1:00 (0 MINUTES):

CASUALTY LINES OF BUSINESS BROADENED COVERAGE DROP DOWN PROVISION / SIR

LUNCH

1:00-2:00 (60 MINUTES): 

RETROSPECTIVE RATING PLANS o WHAT IS RETROSPECTIVE RATING?  OPTIONAL RATING PLAN  EXPERIENCE RATING  SCHEDULE RATING  LOSS RATING  FINAL PREMIUM ADJUSTMENTS BASED ON LOSSES  MAXIMUM AND MINIMUM PREMIUMS  INSURANCE CARRIER EXPENSES  INCURRED/PAID LOSSES o ADVANTAGES OF RETROSPECTIVE RATING PLANS o DISADVANTAGES OF RETROSPECTIVE RATING PLANS o RETRO PREMIUM FORMULA  BASIC PREMIUM

     

COMMISSION ADMINISTRATION AND AUDIT BUREAU LOSS CONTROL PROFIT

INSURANCE CHARGE EXCESS LOSS PREMIUM RATABLE LOSSES RETROSPECTIVE RATING PLAN FLEXIBILITIES  DEFINITION OF LOSS  MINIMUM PREMIUM  MAXIMUM PREMIUM  STANDARD PREMIUM

 

o

2:00-2:30 (30 MINUTES):

CASE STUDY EXERCISE



#1- RETROSPECTIVE RATING FORMULA APPLICATION

FORMULA VS . SPECIFIED MINIMUM o FORMULA MINIMUM EXAMPLE  ADVANTAGE TO INSURED  AFFORDS PREMIUM SAVINGS WITH EXCELLENT LOSS EXPERIENCE  DISADVANTAGE TO INSURED  HIGHER BASIC COST WITH FORMULA MINIMUM VS. SPECIFIED MINIMUM o SPECIFIED MINIMUM EXAMPLE  ADVANTAGE TO THE INSURED  THE HIGHER THE MINIMUM THE LOWER THE INSURANCE CHARGE , THEREBY REDUCING THE BASIC COST  DISADVANTAGE TO INSURED

xx | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET



o 2:30-2:45 (O MINUTES): 2:45-3:15 (30 MINUTES):

INSURED DOES NOT BENEFIT FROM EXCELLENT LOSS EXPERIENCE REVIEW CASE STUDY WITH ANSWER KEY

BREAK CASE STUDY #2- RETROSPECTIVE RATING FORMULA APPLICATION EXERCISE

 

FORMULA VS . SPECIFIED MINIMUM



SPECIFIED MINIMUM EXAMPLE o ADVANTAGE TO INSURED o THE HIGHER THE MINIMUM THE LOWER THE INSURANCE CHARGE , THEREBY REDUCING THE BASIC COST o DISADVANTAGE TO INSURED o INSURED DOES NOT BENEFIT FROM EXCELLENT LOSS EXPERIENCE



REVIEW CASE STUDY WITH ANSWER KEY



MANUSCRIPT ENDORSEMENTS o OBJECTIVES  UNDERSTAND THE WHY ’S AND WHEN ’S OF MANUSCRIPT COVERAGE ’ S  REVIEW THE PRO ’S OF MANUSCRIPT ENDORSEMENTS

FORMULA MINIMUM EXAMPLE o ADVANTAGE TO INSURED o AFFORDS PREMIUM SAVINGS WITH EXCELLENT LOSS EXPERIENCE o DISADVANTAGE TO INSURED o HIGHER BASIC COST WITH FORMULA MINIMUM VS. SPECIFIED MINIMUM

3:15: 4:30 (75 MINUTES)



o

o

RESTRICTIONS IMPOSED WITH ADMITTED PAPER o AUTO VS. GL o FILING AND REGULATIONS o DEREGULATION UNDERSTAND THE MECHANICS OF MANUSCRIPT ENDORSEMENT  FILING AND REGULATION CONCERNS  COMMON REQUESTS  REVIEW EXAMPLES OF MANUSCRIPT ENDORSEMENTS EXPLAIN AND DISCUSS THE COMMON PITFALLS OF MANUSCRIPT ENDORSEMENTS  REVIEW THE CON ’S OF MANUSCRIPT ENDORSEMENTS

  

BORROWING FROM OTHERS ACCUMULATING LAYERS OF ENDORSEMENTS

FINAL REVIEW OF INTERMEDIATE CASUALTY COURSE

CLASSROOM MINUTES : 1, 260 1,260/50=25 X 1.25= 31.25

CE HOURS REQUESTED : 31

xxi | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

STATE OF MISSISSIPPI Insurance Examination Content Outline Effective Date: November 1, 2009 PROPERTY Content Outline I.

TYPES OF POLICIES A. Personal Lines 1. Dwelling and Contents (DP forms) a. Basic, Broad and Special b. Coverage A-E and Other c. Endorsements 2. Homeowners (HO forms) a. HO-2, 3, 4, 5, 6, 8 b. Coverage A-F and Additional c. Endorsements 3. Mobile Homes 4. Personal Watercraft Coverage 5. Automobile a. Financial Responsibility laws b. Personal Automobile Policy a. Part C-F b. Endorsements c. Mississippi Automobile Insurance Assigned Risk Plan B. Commercial Lines 1. Commercial Property a. Commercial building and personal property form b. Causes of loss forms c. Business income d. Builders Risk e. Condominium f. Difference in conditions g. Extra expense 2. Commercial Package Policy 3. Equipment Breakdown Coverage 4. Business-owners Policy (BOP) 5. Farm Insurance 6. Terrorism Risk Insurance Act 7. Automobile a. Business Auto Coverage Form b. Garage Coverage Form c. Truckers Coverage d. Endorsements C. Ocean and Inland Marine 1. Personal floaters 2. Commercial floaters 3. Nationwide Definition D. Others 1. Flood

a. National Flood Insurance Plan b. Write your own program 2. Earthquake 3. Crime Insurance and Bonds II.

INSURANCE TERMS AND RELATED CONCEPTS A. Insurance B. Law of Large Numbers C. Insurable Interest D. Risk E. Hazard F. Peril G. Direct and Indirect Loss H. Proximate Cause I. Deductible J. Indemnity K. Actual Cash Value L. Replacement Cost M. Limits of Liability N. Coinsurance/Insurance to Value O. Accident P. Occurrence Q. Cancellation R. Nonrenewal S. Liability T. Negligence U. Reinsurance V. Personal Lines W. Commercial Lines X. Surplus Lines Y. Proximate Cause Z. Burglary AA. Robbery BB. Theft CC. Stock and Mutual Insurance Companies DD. Lloyds insurers EE. Rating Services and Organizations FF. Pair and Set Clause

III.

POLICY PROVISIONS AND CONTRACT LAW A. Declarations B. Insuring Agreement C. Conditions D. Exclusions E. Blanket vs. Specific Coverage xxii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

F. G. H. I. J. K. L. M. N. O. P. Q. R. S. T. IV.

Definition of the insured Duties of the insured Obligations of the Insurer Mortgagee Rights Proof of Loss Notice of Claim Appraisal Other Insurance Provision Assignment Subrogation Elements of a contract Warranties, Representations, Concealment Binders Source of Insurability information Fair Credit Reporting Act

MISSISSIPPI PROPERTY INSURANCE LAWS A. Commissioner of Insurance 1. Broad Powers 2. Examination of Records 3. Notice of Hearing 4. Rates and Forms 5. Penalties 6. Unlicensed Activities 7. National Association of Insurance Commissioners (NAIC) B. Terms and Concepts 1. Insurance 2. Insurer 3. Insurance transaction 4. Admitted and Non-admitted insurers 5. Domestic, Foreign and Alien Insurers 6. Mississippi Insurance Guaranty Association 7. Risk Retention and Risk Purchasing Groups 8. Mississippi State Rating Bureau 9. Mississippi Residential Property Insurance Underwriting Association 10. Mississippi Windstorm Underwriting Association 11. Valued Policy C. Licensing 1. Persons required to be licensed a. Insurance Producers b. Insurance Adjusters c. Limited Lines Insurance Producers d. Limited Lines Credit Insurance Producers e. Resident and Non-Residents f. Exemptions g. Surplus Lines Insurance Producers 2. Pre-licensing Education Requirement 3. Appointments/Termination of Appointments 4. Penalties for noncompliance a. Refusal/nonrenewal b. Suspension / revocation

c. Administrative Fines d. Restitution 5. Maintenance and duration of license a. Renewal b. Continuing Education c. Notify Commissioner of Change in Address d. Report Administrative or Criminal Action D. Marketing Practices 1. Protection of public interest 2. Unfair Practices a. Unfair claims methods and trade practices b. Producer’s Compensation Disclosure c. Rebating/illegal dealing in premiums d. Illegal inducements e. Twisting f. Misrepresentation g. Credit Scoring-Adverse Action h. Discrimination i. Failure to issue proper receipts j. Penalties k. Advertising 3. Producer responsibilities a. Policy deliveries b. Premium Accountability c. Separate Account Requirement d. Reply to the Insurance Commissioner e. Burden of determining authorization 4. Compensation a. Payment of Commissions b. Duly licensed producer c. Charges for extra services (prior approval) d. Referral fee e. Controlled business E. Cancellation/Nonrenewal 1. Property policies a. Personal Lines a. Homeowners b. Automobile b. Commercial Lines 2. Proof of Notice F. Applications and Binders 1. Binding coverage

xxiii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

8. Garage Coverage Form, including Garagekeepers Insurance C. Workers Compensation insurance, Employers Liability insurance, and related issues 1. Standard policy concepts 2. Work-related vs. non work-related 3. Other states insurance 4. Waiting Period 5. Five or more workers D. Crime 1. Employee theft 2. Inside the premises- theft of money and securities 3. Inside the premises- robbery or safe burglary of other property E. Surety Bonding 1. Definitions a. Oblige b. Principal c. Surety

CASUALTY Content Outline I.

TYPES OF POLICIES, BONDS, AND RELATED TERMS A. Commercial General Liability 1. Basic Hazards a. Premises and Operations b. Products and Completed Operations c. Independent Contractors d. Insured Contracts 2. Commercial General Liability Coverage Forms a. Coverage A: Bodily Injury and Property Damage Liability 1. Occurrence 2. Claims Made i. Extended Reporting Periods ii. Retroactive Date b. Coverage B: Personal Injury and Advertising Injury c. Coverage C: Medical Payments d. Supplemental Payments e. Who is an insured f. Limits g. Conditions (ISO’s common policy conditions) h. Definitions 3. Other GL Coverage’s a. Contractual Liability b. Excess and Umbrella Liability c. Personal Injury d. Professional Liability e. Errors and Omissions f. Directors and Officers g. Fiduciary Liability h. Liquor liability/Dram Shop i. Employment Practices j. Underground Storage k. Medical Payments B. Automotive: Personal Auto and Business Auto 1. Liability 2. Medical Payments 3. Physical Damage (collision and other than collision/comprehensive) 4. Uninsured motorists 5. Underinsured motorist 6. Who is an insured 7. Types of Auto a. Owned b. Non-owned c. Hired d. Temporary Substitute

II.

INSURANCE TERMS AND RELATED CONCEPTS A. Risk B. Hazard C. Indemnity D. Law of Large Numbers E. Insurance Interest F. Actual Cash Value G. Negligence H. Liability I. Accident J. Occurrence K. Burglary L. Robbery M. Theft N. Mysterious disappearance O. Binders P. Warranties Q. Representations R. Concealment S. Bodily injury liability T. Property damage liability U. Personal injury liability V. Limits of liability W. Deductibles X. Insured contract Y. Deposit Premium/Audit Z. Certificate of Insurance

III.

POLICY PROVISIONS A. Declarations B. Insuring Agreement C. Conditions D. Exclusions and Limitations E. Definition of the Insured F. Duties of the insured after a loss G. Cancellation and nonrenewal provisions H. Additional (supplementary) provisions I. Proof of Loss xxiv | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

c.

J. K. L. M. N. O. P. Q.

IV.

Notice of Claim Arbitration Other Insurance Subrogation Compliance with the provisions of FCRA Claims made policy form Salvage Loss settlement provisions including consent to settle a loss

MISSISSIPPI CASUALTY INSURANCE LAWS A. Commissioner 1. Broad Powers 2. Examination of records 3. Notice of Hearing 4. Rates and forms 5. Penalties 6. Unlicensed activities 7. National Association of Insurance Commissioners (NAIC) B. Terms and Concepts 1. Insurance 2. Insurer 3. Insurance transaction 4. Admitted and Non-admitted Insurers 5. Domestic, Foreign and Alien Insurers 6. Mississippi Insurance Guaranty Association 7. Risk Retention and Risk Purchasing Groups 8. Mississippi State Rating Bureau 9. Mississippi Residential Property Insurance Underwriting Association 10. Mississippi Automobile Insurance Assigned Risk Plan C. Licensing 1. Persons required to be licensed a. Insurance Producer b. Insurance Adjuster c. Limited Lines Insurance Producer d. Limited Lines Credit Insurance Producer e. Resident and Non-Resident f. Exemptions g. Surplus Lines Insurance Producers 2. Pre-licensing Education Requirement 3. Appointments/Termination of Appointments 4. Penalties for noncompliance a. Refusal/nonrenewal b. Suspension / revocation c. Administrative Fines d. Restitution 5. Maintenance and duration of license a. Renewal b. Continuing Education

Notify Commissioner of Change in Address d. Report Administrative or Criminal Action D. Marketing Practices 1. Protection of Public Interest 2. Unfair Practices a. Unfair claims methods and trade practices b. Producer’s Compensation Disclosure c. Rebating/Illegal dealing in premiums d. Credit Scoring-adverse action e. Illegal inducements f. Twisting g. Misrepresentation h. Defamation of insurer i. Discrimination j. Failure to issue proper receipts k. Penalties l. Advertising 3. Producer responsibilities a. Policy deliveries b. Premium Accountability c. Reply to the Insurance Commissioner 4. Compensation a. Payment of Commissions b. Duly licensed producer c. Charges for extra services (prior approval) d. Referral fee e. Controlled business E. Cancellation/Nonrenewal 1. Proof of Notice F. Applications and Binders 1. Binding coverage

xxv | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

P. Occurrence Q. Liability R. Negligence S. Burglary T. Robbery U. Theft V. Mysterious Disappearance W. Bodily injury liability X. Property Damage Liability Y. Personal injury liability Z. Limits of Liability AA. Premium BB. Reinsurance CC. Personal Lines DD. Surplus Lines EE. Proximate Cause FF. Stock and Mutual Insurance Companies GG. Lloyds insurers HH. Rating Services and Organizations II. Pair and Set Clause

PERSONAL LINES Content Outline I.

II.

TYPES OF POLICIES a. Personal Lines i. Dwelling and Contents (DP forms) 1. Basic, Broad and Special 2. Coverage A-E and Other 3. Endorsements ii. Homeowners (HO forms) 1. HO-2, 3, 4, 5, 6, 8 2. Coverage A-F and Additional 3. Endorsements iii. Mobile Homes iv. Personal Watercraft Coverage v. Automobile 1. Financial Responsibility laws 2. Personal Automobile Policy a. Part C-F b. Endorsements 3. Mississippi Automobile Insurance Assigned Risk Plan 4. Liability 5. Medical Payments 6. Physical Damage (collision and other than collision/comprehensive) 7. Uninsured motorists 8. Underinsured motorist 9. Who is an insured 10. Types of Auto a. Owned b. Non-owned c. Hired d. Temporary Substitute vi. Flood 1. National Flood Insurance Plan 2. Write your own program vii. Earthquake viii. Crime Insurance and Bonds INSURANCE TERMS AND RELATED CONCEPTS A. Insurance B. Law of Large Numbers C. Insurable Interest D. Risk E. Hazard F. Peril G. Direct and Indirect Loss H. Proximate Cause I. Deductible J. Indemnity K. Actual Cash Value L. Replacement Cost M. Limits of Liability N. Coinsurance/Insurance to Value O. Accident

III.

POLICY PROVISIONS AND CONTRACT LAW A. Declarations B. Insuring Agreement C. Conditions D. Exclusions E. Blanket vs. Specific Coverage F. Definition of the insured G. Duties of the insured H. Obligations of the Insurer I. Mortgagee Rights J. Proof of Loss K. Notice of Claim L. Appraisal M. Other Insurance Provision N. Assignment O. Subrogation P. Elements of a contract Q. Warranties, Representations, Concealment R. Binders S. Source of Insurability information T. Fair Credit Reporting Act U. Arbitration V. Salvage W. Loss Settlement Provisions

IV.

MISSISSIPPI PERSONAL LINES INSURANCE LAWS A. Commissioner of Insurance i. Broad Powers ii. Examination of Records iii. Notice of Hearing iv. Rates and Forms v. Penalties vi. Unlicensed Activities vii. National Association of Insurance Commissioners (NAIC) B. Terms and Concepts i. Insurance ii. Insurer iii. Insurance transaction xxvi | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

iv. Admitted and Non-admitted insurers v. Domestic, Foreign and Alien Insurers vi. Mississippi Insurance Guaranty Association vii. Risk Retention and Risk Purchasing Groups viii. Mississippi State Rating Bureau ix. Mississippi Residential Property Insurance Underwriting Association x. Underwriting Association xi. Mississippi Windstorm Underwriting Association xii. Valued Policy C. Licensing i. Persons required to be licensed 1. Insurance Producers 2. Insurance Adjusters 3. Limited Lines Insurance Producers 4. Limited Lines Credit Insurance Producers 5. Resident and NonResidents 6. Exemptions 7. Surplus Lines Insurance Producers ii. Pre-licensing Education Requirement iii. Appointments/Termination of Appointments iv. Penalties for noncompliance 1. Refusal/nonrenewal 2. Suspension / revocation 3. Administrative Fines 4. Restitution v. Maintenance and duration of license 1. Renewal 2. Continuing Education 3. Notify Commissioner of Change in Address 4. Report Administrative or Criminal Action D. Marketing Practices i. Protection of public interest ii. Unfair Practices 1. Unfair claims methods and trade practices 2. Producer’s Compensation Disclosure 3. Rebating/illegal dealing in premiums 4. Illegal inducements 5. Twisting 6. Misrepresentation 7. Credit Scoring-Adverse Action

8. 9.

Discrimination Failure to issue proper receipts 10. Penalties 11. Advertising iii. Producer responsibilities 1. Policy deliveries 2. Premium Accountability 3. Reply to the Insurance Commissioner iv. Compensation 1. Payment of Commissions 2. Duly licensed producer 3. Charges for extra services (prior approval) 4. Referral fee 5. Controlled business E. Cancellation/Nonrenewal i. Property policies 1. Personal Lines a. Homeowners b. Automobile ii. Proof of Notice F. Applications and Binders i. Binding coverage

xxvii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

LIFE Content Outline I.

A. Traditional Whole Life Policies 1. Ordinary Life 2. Limited-pay and single-premium Life 3. Adjustable Life B. Interest-sensitive Life products 1. Universal Life 2. Variable Whole Life 3. Variable Universal Life 4. Interest-sensitive Whole Life C. Term Life 1. Level, decreasing, and increasing term 2. Special features a. Renewable b. Convertible D. Annuities 1. Single, level, and flexible premium 2. Immediate and deferred 3. Fixed and Variable 4. Equity Index E. Combination plans and variations 1. Joint Life 2. Survivorship Life II.

9. Policy loans, withdrawals, partial surrenders 10. Non-forfeiture options 11. Dividends and Dividend options 12. Incontestability 13. Assignments 14. Suicide 15. Misstatement of Age and Gender 16. Settlement Options 17. Free look period C. Policy exclusions

TYPES OF POLICIES

III.

COMPLETING THE APPLICATION, UNDERWRITING AND DELIVERING THE POLICY A. Completing the Application 1. Required signatures 2. Changes in the application 3. Consequences of incomplete applications 4. Warranties and representations 5. Collecting the initial premium and issuing the receipt 6. Replacement 7. Disclosures at point of sale B. Underwriting 1. Insurable interest 2. Medical information and consumer reports 3. Fair Credit Reporting Act 4. Risk classification C. Delivering the policy 1. When coverage begins 2. Explaining the policy and its provisions, riders, exclusions, and ratings to the client D. Do not call list

IV.

TAXES, RETIREMENT, AND OTHER INSURANCE

POLICY RIDES, PROVISIONS, OPTIONS, AND EXCLUSIONS

A. Policy riders 1. Waiver of premium and waiver of premium with disability income 2. Guaranteed insurability 3. Payor benefit 4. Accidental death and/or accidental death and dismemberment 5. Term riders 6. Other insureds 7. Cost of Living B. Policy provisions and options 1. Entire Contract 2. Insuring Clause 3. Free Look 4. Consideration 5. Owner’s rights 6. Beneficiary designations a. Primary and contingent b. Revocable and Irrevocable c. Changes d. Common Disaster e. Minor beneficiaries 7. Premium Payment a. Modes b. Grace Period c. Automatic premium loan d. Level or flexible 8. Reinstatement 9.

CONCEPTS

A. Third-party ownership B. Group Life insurance 1. Conversion privilege 2. Contributory vs. Non-Contributory C. Retirement Plans 1. Tax qualified plans 2. Nonqualified plans D. Business insurance E. Social Security benefits and taxes F. Tax treatment of insurance premiums, proceeds, dividends 1. Individual Life 2. Group Life 3. Modified Endowment Contracts G. Accelerated Death Benefits- Living Benefits H. Endowments xxviii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

V.

MISSISSIPPI LIFE INSURANCE LAWS A. Commissioner 1. Broad Powers 2. Examination of Records

3. Notice of Hearing 4. Rates and Forms 5. Penalties 6. Unlicensed Activities B. Terms and Concepts 1. Insurance 2. Insurer 3. Insurance transaction 4. Authorized and Unauthorized Certificate of Authority 5. Domestic, Foreign, and Alien 6. Mississippi Life and Health Insurance Guaranty Association 7. Fraternals C. Licensing 1. Persons required to be licensed a. Insurance Producer b. Insurance Adjuster c. Limited Lines Insurance Producer d. Limited Lines Credit Insurance Producer e. Resident and Non-Resident f. Exemptions 2. Appointments/Termination of Appointments 3. Penalties for noncompliance a. Refusal/nonrenewal b. Suspension/revocation c. Fines d. Restitution 4. Maintenance and duration of license a. Renewal b. Continuing Education c. Notify Commissioner of Change in Address d. Report Administrative or Criminal Action D. Marketing Practices 1. Protection of public interest 2. Unfair practices a. Unfair claims methods and trade practices b. Producers Compensation Disclosure c. Rebating/illegal dealing in premiums d. Illegal inducements e. Twisting f. Misrepresentation g. Defamation of Insurer

h. Discrimination i. Failure to issue proper receipts j. Penalties k. Advertising 3. Producer Responsibilities a. Policy delivery b. Premium accountability c. Reply to the Commissioner 4. Compensation a. Receiving compensation b. Charges for extra services (prior approval) c. Referral Fee d. Controlled business 5. Replacement a. Purpose b. Definition c. Duty of Producer 6. Disclosure a. Purpose b. Definition c. Duty of Producer

xxix | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

ACCIDENT AND HEALTH Content Outline I.

II.

TYPES OF POLICIES A. Disability Income 1. Individual disability income policy 2. Business overhead expense policy 3. Business disability buyout policy 4. Group disability income policy 5. Key employee/partner policies B. Accidental death and dismemberment C. Medical expense insurance 1. Basic hospital, medical and surgical policies 2. Major medical policies 3. Comprehensive major medical policies 4. Health Maintenance Organizations (HMO’s) 5. Preferred Provider Organizations (PPO’s) 6. Service Organizations (Blue Plans) 7. Point of Service plans (POS) 8. Medical Savings Account (MSA) 9. Flexible Spending Account (FSA) 10. Health Reimbursement Account (HRA’s) 11. High Deductible Health Plan (HDHP’s) 12. Health Savings Accounts (HSA’s) 13. Consumer Driven Health Plan (CDHP’s) D. Medicare Supplement Policies E. Group Insurance 1. Group conversion 2. Differences between individual and group contracts 3. General concepts 4. COBRA 5. HIPPA F. Long Term Care 1. Individual LTC contracts 2. Group/Voluntary LTC contracts 3. Service days vs. Calendar Days G. Cancer plans H. Critical illness plans I. Worksite plans POLICY PROVISIONS, CLAUSES, AND RIDERS A. Mandatory provisions 1. Entire contract 2. Time limit on certain defenses (incontestable) 3. Grace Period 4. Reinstatement 5. Notice of Claim 6. Claim forms 7. Proof of Loss

B.

C.

D.

E.

Time of payment of claims 1. Payment of claim Restitution 2. Restitution 3. Restitution 8. Payment of claims 9. Physical examination and autopsy 10. Legal Actions 11. Change of Beneficiary Optional Provisions 1. Change of occupation 2. Misstatement of age 3. Illegal occupation Other provisions and clauses 1. Insuring Clause 2. Free look period 3. Consideration clause 4. Probationary period 5. Elimination period 6. Waiver of premium 7. Exclusions 8. Preexisting conditions 9. Recurrent disability 10. Coinsurance 11. Deductibles 12. Eligible expenses 13. Copayments 14. Pre-authorizations and prior approval requirements 15. Usual, reasonable and customary charges 16. Lifetime, annual or per cause maximum benefit limits. Riders 1. Impairment rider 2. Guaranteed insurability rider 3. Multiple indemnity rider Rights of renewability 1. Non-cancelable 2. Cancelable 3. Guaranteed renewable 4. Conditionally renewable 5. Optionally renewable 6. Period of time for renewal

III.

SOCIAL INSURANCE A. Medicare 1. Primary, secondary payor 2. Medicare parts, A, B, C, D B. Medicaid C. Social Security benefits

IV.

OTHER INSURANCE CONCEPTS A. Total, Partial and Residual disability B. Owner’s rights

xxx | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

C. Dependent children benefits D. Primary and Contingent beneficiaries E. Modes of premium payments (annual, semiannual, etc.) F. Non-duplication and coordination of benefits G. Occupational vs. Non-Occupational H. Tax Treatment of premiums and proceeds of insurance contracts I. Managed Care J. Workers Compensation K. Subrogation L. Small Group Coverage V.

FIELD UNDERWRITING PROVISIONS A. Completing application and obtaining necessary signatures B. Explaining sources of insurability information C. Initial premium payment and receipt and consequences of the receipt D. Submitting application to the Insurer for underwriting E. Assuring delivery of policy and related documents to client F. Explaining policy and its provisions, riders, exclusions, and ratings to clients G. Replacement H. Contract Law 1. Requirements of forming a contract 2. Insurable Interest 3. Warranties and Representation 4. Unique aspects of the health contract 1. Conditional 2. Unilateral 3. Adhesion

VI.

MISSISSIPPI ACCIDENT AND HEALTH INSURANCE LAWS

A. Commissioner 1. Broad Powers 2. Examination of Records 3. Notice of Hearing 4. Rates and Forms 5. Penalties 6. Unlicensed Activities B. Terms and Concepts 1. Insurance 2. Insurer 3. Insurance transaction 4. Authorized and Unauthorized Certificate of Authority 5. Domestic, Foreign, and Alien 6. Mississippi Life and Health Insurance Guaranty Association 7. Fraternals 8. Portability 9. Maternity/Newborn Coverage 10. Pregnancy Complications

11. 12. 13. 14. 15.

Mammography/Prostate Screenings Diabetes Hospice/Home Health Care Prompt Pay Utilization Review

C. Licensing 1. Persons required to be licensed a. Insurance Producer b. Insurance Adjuster c. Limited Lines Insurance Producer d. Limited Lines Credit Insurance Producer e. Resident and Non-Resident f. Exemptions 2. Appointments/Termination of Appointments 3. Penalties for noncompliance a. Refusal/nonrenewal b. Suspension/revocation c. Fines d. Restitution 4. Maintenance and duration of license a. Renewal b. Continuing Education c. Notify Commissioner of Change in Address d. Report Administrative or Criminal Action D. Marketing Practices 1. Protection of public interest 2. Unfair practices a. Unfair claims methods and trade practices b. Producers Compensation Disclosure c. Rebating/illegal dealing in premiums d. Illegal inducements e. Twisting f. Misrepresentation g. Defamation of Insurer h. Discrimination i. Failure to issue proper receipts j. Penalties k. Advertising 3. Producer Responsibilities a. Policy delivery b. Premium accountability c. Reply to the Commissioner 4. Compensation a. Receiving compensation b. Charges for extra services (prior approval) c. Referral Fee d. Controlled business xxxi | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

5. Replacement a. Purpose b. Definition c. Duty of Producer

6. Disclosure a. Purpose b. Definition c. Duty of Producer

xxxii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

STATE OF MISSISSIPPI Adjuster Insurance Examination Content Outline Effective Date: July 1, 2016

v.

Workers’ Compensation Adjuster Content Outline Mississippi Insurance Department a. Commissioner of Insurance b. License Line of Authority 2. Insurance Policy 3. Administration a. Impartial Construction b. Agency of Administration and Members 4. Application a. Employers Subject to the MWCA b. Penalties for Failure to Secure Coverage 5. Coverage a. Uninsured Subcontractor b. Notice of Cancellation or Non-Renewal c. Self-Insurance d. Notice of Coverage 6. Jurisdiction 7. Extraterritorial Application a. Concurrent Jurisdiction 8. Exclusiveness of Liability 9. Liability for Compensation a. Compensable Injuries b. Burden of Proof c. Standard of Proof d. Found Dead Presumption e. Coming and Going Rule f. Consecutive Injuries g. Idiopathic Falls h. Independent Contractors i. Non-resident Aliens j. Apportionment k. Intoxication l. Willful Intent to Injure m. Compensation for Injuries where Third Parties are Liable n. Statute of Limitations 10. Reporting of Injuries a. Requirements b. Penalty 11. Indemnity Benefits a. Compensation for Disability i. Temporary Total Disability ii. Permanent Partial Disability iii. Permanent Total Disability iv.

12. 13. 14. 15.

16. 17.

18.

19. 20.

Partial or Total Loss of Use of a member b. Calculation of Compensation Rate c. Indemnity Waiting Period d. Maximum and Minimum Payments e. Temporary Partial Disability f. Hernia g. Payments & Penalties h. Maximum Medical Improvement i. Form B-18 Report of Payment or Suspension of Payment Average Weekly Wage Mileage Reimbursement Child and Spousal Support Liens Medical Benefits a. Right of Selection b. Qualified Providers c. Ex Parte’ Communication d. Authorization e. Duty to Provide Second Injury Fund Litigation a. Form B-5,11 Petition to Controvert & Response Settlements a. Procedure b. Medicare Requirements Third Party Recovery Fraud and Misrepresentation

Study material: MS Adjuster Guidebook, Workers Compensation Commission located at www.mwcea.org

Serious Head or Facial Disfigurement xxxiii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

Property and Casualty Adjuster with Workers Comp Content Outline 1.

2.

3.

4.

Property and Casualty insurance terms and concepts a. Insurance b. Law of Large Numbers c. Insurable Interest d. Risk e. Hazard f. Peril g. Direct and Indirect Loss h. Proximate Cause i. Deductible j. Indemnity k. Actual Cash Value l. Replacement Cost m. Limits of Liability n. Coinsurance/Insurance to Value o. Accident p. Occurrence q. Cancellation r. Nonrenewal s. Liability t. Negligence u. Reinsurance v. Personal Lines w. Commercial Lines x. Surplus Lines y. Proximate Cause z. Burglary aa. Robbery bb. Theft cc. Stock and Mutual Insurance Companies dd. Lloyds insurers ee. Rating Services and Organizations ff. Pair and Set Clause Commercial Auto Insurance a. Business auto coverage form b. Garage Coverage form c. Truckers coverage d. Endorsements Commercial General Liability Insurance a. Basic Hazards b. CGL Coverage forms c. Other General Liability forms Commercial Property Insurance a. Premises and Operations

5. 6.

7. 8. 9.

10.

11.

12.

13.

14.

15. 16.

b. Products Completed Operations c. Personal and Advertising injury d. Boiler and Machinery e. Businessowners Policy (BOP) Dwelling Insurance Homeowners Insurance a. HO forms b. Coverage c. Endorsements Insurance Company Organization and Regulation Introduction to Liability Insurance Introduction to Property Insurance a. Property policy conditions b. Prorata method c. Terms and concepts Miscellaneous Commercial Insurance a. Surety bonds b. Crime coverage c. Additional coverage i. Business interruption ii. Law & Ordinance d. Professional liability e. Title Miscellaneous Personal Insurance a. Umbrella/Excess liability b. Earthquake c. Flood Mississippi Law, Rules and Regulation a. Commissioner of Insurance b. Definitions c. License requirements d. Adjuster Ocean and Inland Marine Insurance a. Personal floaters b. Commercial floaters c. Nationwide definition d. Personal water craft Personal Auto Insurance a. Types of auto b. Liability c. Medical payments d. Physical damage e. Uninsured/underinsured f. Who is insured Principles of Insurance Standard Fire Policy a. Basic coverages b. Limitations and restrictions c. Loss d. Appraisal

xxxiv | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

17.

Workers Compensation a. Coverage i. Uninsured Subcontractor ii. Notice of Cancellation or NonRenewal iii. Self-Insurance iv. Notice of Coverage b Insurance Policy c Liability for Compensation i. Compensable Injuries ii. Burden of Proof iii. Standard of Proof iv. Found Dead Presumption v. Coming and Going Rule vi. Consecutive Injuries vii. Idiopathic Falls viii. Independent Contractors ix. Non-resident Aliens x. Apportionment xi. Intoxication xii. Willful Intent to Injure xiii Compensation for Injuries where Third Parties are Liable xiv. Statute of Limitations d. Indemnity Benefits i. Compensation for Disability Permanent Total Disability Serious Head or Facial Disfigurement Partial or Total Loss of Use of a member e. Medical Benefits i. Right of Selection Qualified Providers Ex Parte’ Communication Authorization Duty to Provide f. Average weekly raise

Public Adjuster Content Outline 1.

2. 3. 4. 5. 6. 7. 8. 9.

10. 11.

Auto Insurance a. Types of Auto b. Personal & Commercial Physical Damage Coverages – Comprehensive and Collision Dwelling Insurance Homeowners Insurance – Property only Personal Property Floaters (covers jewelry, furs, silverware, paintings, etc.) Business Owners Policy – property coverage only Commercial Property Coverage Equipment Breakdown Coverages (boilers & generators, etc) Commercial Inland Marine (valuable papers, signs, motor truck cargo, etc.) General Insurance Concepts & Principles a. Property and Casualty Insurance terms and concepts Claims Adjusting of First Party property claims Mississippi Law, Rules and Regulations a. Commissioner of Insurance b. Definitions c. License requirements d. Public Adjuster Code requirements

xxxv | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

STATE OF MISSISSIPPI INSURANCE EXAMINATION CONTENT OUTLINE EFFECTIVE DATE: JULY 1, 2016 PROFESSIONAL BAIL AGENT EXAM OUTLINE I.

ARREST AND RELEASE A. WHO MAY MAKE AN ARREST B. SURRENDER OF DEFENDANTS C. ISSUING WARRANTS D. APPREHENSION OF DEFENDANTS E. PROPERTY BOND F. CONSIDERATIONS FOR SETTING

VI.

FORFEITURES AND JUDGMENTS A. DENIAL, SUSPENSION OR REVOCATION OF LICENSE B. DISCIPLINARY ACTIONS/PENALTIES C. BOND FORFEITURE D. MOTIONS TO SET ASIDE JUDGMENTS E. FINAL JUDGMENT OF FORFEITURE

BONDS

II.

BEGINNING A BAIL BOND BUSINESS A. STEPS B. QUALIFICATION BOND C. PROFESSIONAL BAIL AGENT DEFINITION D. BAIL ENFORCEMENT AGENT DEFINITION E. SOLICITING BAIL AGENT DUTIES F. LIMITED SURETY AGENT DUTIES G. PERSONAL SURETY AGENT DUTIES H. RECORD KEEPING

III.

VII

FULFILLING THE OBLIGATION A. DISCHARGING BONDS B. EVIDENCE TO CONVICT

VIII.

HISTORY OF SURETYSHIP A. CONSTITUTION AMENDMENTS

IX.

MISSISSIPPI LAW, RULES AND REGULATIONS A. LICENSE REQUIREMENTS B. LICENSE ELIGIBILITY C. QUALIFICATION D. NON-RESIDENT ELIGIBILITY E. PRE-LICENSING EDUCATION

COLLATERAL AND INDEMNITY A. RETURN OF COLLATERAL AFTER

REQUIREMENTS F. LICENSING RENEWAL AND EXPIRATION G. LICENSE TRANSFER REQUIREMENTS H. LICENSEE APPEAL I. CONTINUING EDUCATION J. REINSTATEMENT REQUIREMENTS K FINES FOR AGENT AND INSURERS L. CHANGE OF ADDRESS M. UNLAWFUL ACTS

FULFILLMENT B. CUSTODY OF COLLATERAL C. PENALTIES

IV.

V.

CONTRACTS A. DEFINITION B. PARTIES OF A CONTRACT C. INDEMNIFICATION AGREEMENTS/SURETY CONTRACTS D. CREATING A VALID CONTRACT

X.

SKIP TRACING, ARREST, AND SURRENDER A. REASONS FOR SURRENDER B. RETURN OF PREMIUM AFTER SURRENDER C. PROCEDURES FOR SURRENDER D. ACCESSING RECORDS E. BAIL CONTRACT

XI.

SURETY BONDS A. SURETY BOND TYPES B. INSURER

XII.

TERMINOLOGY A. APPEAL B. ARRAIGNMENT C. BAIL

COURTS AND THEIR JURISDICTION A. COURTS B. POWER OF ATTORNEY C. POSTING LICENSING WITH COURTS D. PERSONS EXCLUDED FROM ACTING AS BAIL AGENT E. COURT PROCEDURES F. COURT APPEARANCE H. ARRAIGNMENT I. TRIAL J. APPEAL K. CONDITIONS FOR RELEASE L. FAILURE TO APPEAR

xxxvi | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

D. E F. G H. I. J. K. J L. M.

BAIL BONDS BAIL AGENT CASH BOND COLLATERAL CUSTODY DEFENDANT EXTRADITION FELONY FUGITIVE LEVY OBLIGOR a. OBLIGATIONS OF THE PARTIES b. AMOUNT OF BAIL c. COLLATERAL SECURITY d. RECEIPTS e. POSTING THE BOND/RECORDINGS f. INFORMATIONAL NOTICE REQUIREMENTS g. TRANSFERRING OF A BOND

N. O. P. Q. R. S. XIII.

POWER OF ATTORNEY PREMIUM PRINCIPAL SURETY TRUST ACCOUNT WRITS

WRITING AND UNDERWRITING BONDS A. BOND PROCESS a. APPLICATION FOR BOND b. THE SURETY CONTRACT

SOURCE: MS CODE 83-39-1 TO 83-39-31; 99-5-1 TO 99-5-37 WWW.MID.MS.GOV FOR BAIL AGENT LAW, RULES, REGULATIONS

xxxvii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

UNIFORM CONTINUING EDUCATION RECIPROCITY COURSE FILING FORM Please clearly print or type information on this form. Thank you for helping us promptly process your application. Provider Information Provider Name FEIN # (if applicable)

Contact Person

E-mail Address of Contact Person

Phone Number (

)

Fax Number

-

ext.

(

)

Home State

Home State Provider #

Reciprocal State

Reciprocal State Provider #

State

Zip

-

Mailing Address

City

Course Information Course Title

Date of Course Offering (if applicable) Method of Instruction

National Course

Self – Study (non-contact)

Classroom (contact)

□ Correspondence □ On-Line Training (Self-Study) □ Video/Audio/CD/DVD

□ Seminar/Workshop □ Webinar □ Teleconference □ Other _______________________

Word Count __________________ Difficulty (Circle) Basic Intermediate

Advanced

□ Yes

Examination Required? Course Concentration

□ No

National Insurance Designation?

□ Yes

□ No

Designation Type: __________________________________

Is this Course Open to the Public?

□ Yes

Credit Hours Requested and Course/Hours Decision Hrs Requested by Hrs Approved by Home Provider State Sales/Mktg Insurance Sales/Mktg Insurance

□ No Hrs Approved by Reciprocal State Sales /Mktg Insurance

Insurance Topics: (Circle Appropriate Course Concentration) Life / Health Property / Casualty/Personal Lines Ethics General (Applies to all lines) Insurance Laws Other (LTC, NFIP, Viatical, Annuities, _________) Total Hours

Adjuster Topics (Total Hours) Information Below is for Regulator Use Only Approval Date Course Number assigned Course approval expiration date Signature of Home State Regulator/Representative OR ATTACH Provider Home State Approval Form Signature of Reciprocal State Regulator/Representative OR ATTACH Reciprocal State Approval Form

See State Matrix for Instruction Sheet and State Specific Fee Schedule xxxviii | P a g e

INSTRUCTION SHEET NOTE: This course may NOT be advertised or offered as approved in the state to which application has been made until approval has been received from the Insurance Department. 1.

If you are a PROVIDER filing for approval from the Home State: 1.1 Complete all the fields in the “Provider Information” section except “Reciprocal State” and the adjacent “Provider #” fields. 1.2 Complete the Course Information Section. 1.3 In the “Credit Hours Requested and Course/Hours Decision” section, complete the “Hrs. Requested by Provider” columns, detailing in the respective columns the number of hours for sales – and marketing-related instruction and the number of hours for other insurance-related instruction. Please note the following: 1.3.1 When using this application, only whole numbers of credit hours will be approved – partial hours will be eliminated. 1.3.2 Contact the individual state to determine whether there are any specific requirements for submitting insurance adjuster courses. 1.3.3 Applications including both self-study and classroom must list hours separately under Method of Instruction. 1.4 Partial self study hours: 4 hrs = 30 questions, 5-8 hrs = 60 questions, 9-16 hrs – 90 questions, and 17-24 hrs = 112 questions. 1.5 Entirely self study hours: 4 hrs = 52 questions, 5-8 hrs = 105 questions, 9-16 hrs = 150 questions, 17-24 hrs = 187 questions, 24+ hrs = 300 questions. 1.6 Submit the application form along with required course materials, a detailed course outline, exam questions, if required, and the $50.00 course application fee.

2.

If you are a PROVIDER filing for approval from a Reciprocal State: 2.1 Make a sufficient number of photocopies of the Home State approval form to enable you to submit a copy of this application to each of the Reciprocal States where you are seeking credit. 2.2 On each application, write the Reciprocal State and the provider number assigned to you by that state in the “Reciprocal State” and adjacent “Provider #” fields. 2.3 Send the PE application, home state approval, if home state issues one, a detailed course outline, and the required fee to the reciprocal state. 2.4 Submit documentation and exam questions for Mississippi statute portion of course.

3.

If you are a HOME STATE or the designated Representative of the Home State: 3.1 After reviewing the course materials, complete the “Hrs Approved by Home State” column. 3.2 Enter the date of approval, course # assigned, course approval expiration date. Sign the PE Form OR attach the home state approval form. 3.3 If the class is not approved, note it on the bottom of the PE Form.

4.

If you are the RECIPROCAL STATE or designated representative of the Reciprocal State: 4.1 After reviewing “Hrs approved by Home State” complete the “Hrs Approved by Reciprocal State”. 4.2 Enter the date of approval, course number assigned, course approval expiration date. Sign the PE Form OR attach the reciprocal state approval form. 4.3 If the class is not approved, note it on the bottom of the Form.

Mail this form to Mississippi Insurance Department, P.O. Box 79, Jackson MS 39205-0079 Or (501 N. West Street, 1001 Woolfolk State Office Bldg, Jackson, MS 39201. For questions call 601-359-3582 or email [email protected] . .

xxxix | P a g e

PRE-LICENSING EDUCATION COURSE FILING FORM Please clearly print or type information on this form. Thank you for helping us promptly process your application. Provider Information Provider Name FEIN # (if applicable)

Contact Person

E-mail Address of Contact Person

Phone Number

Home State

Fax Number

( ) Mailing Address

ext.

(

)

Home State Provider #

Reciprocal State

Reciprocal State Provider #

State

Zip

City

Course Information Course Title

Method of Instruction

Self – Study (non-contact)

Classroom (contact)

□ Correspondence □ On-Line Training (Self-Study) □ Video/Audio/CD/DVD

□ Seminar/Workshop □ Webinar □ Teleconference □ Other

Word Count

Is this course Self-Study (noncontact) and Classroom (contact) ?

□ Yes

□ No

Self-Study Hours Classroom Hours

Is this Course Open to the Public? Examination Required? Credit Hours Requested and Course/Hours Decision Course Concentration

□ Yes

□ No

Hrs Requested by Provider Insurance

□ Yes

□ No

Hrs Approved by Home State Insurance

Hrs Approved by Reciprocal State Insurance

A. Insurance Topics: (CKHFN Appropriate Course Concentration) Life / Health Property / Casualty/ Personal Lines Total Hours

B. Adjuster Topics (Total Hours) Information Below is for Regulator Use Only Approval Date Course Number assigned Course approval expiration date Signature of Home State Regulator/Representative OR ATTACH Provider Home State Approval Form Signature of Reciprocal State Regulator/Representative OR ATTACH Reciprocal State Approval Form

40 | P a g e

INSTRUCTION SHEET NOTE: This course may NOT be advertised or offered as approved in the state to which application has been made until approval has been received from the Insurance Department.

1.

If you are a PROVIDER filing for approval from the Home State: 1.1 Complete all the fields in the “Provider Information” section except “Reciprocal State” and the adjacent “Provider #” fields. 1.2 Complete the Course Information Section. 1.3 In the “Credit Hours Requested and Course/Hours Decision” section, complete the “Hrs. Requested by Provider” columns, detailing in the respective columns the number of hours for sales – and marketing-related instruction and the number of hours for other insurance-related instruction. Please note the following: 1.3.1 When using this application, only whole numbers of credit hours will be approved – partial hours will be eliminated. 1.3.2 Contact the individual state to determine whether there are any specific requirements for submitting insurance adjuster courses. 1.3.3 Applications including both self-study and classroom must list hours separately under Method of Instruction. 1.4 Partial self study hours: 4 hrs = 30 questions, 5-8 hrs = 60 questions, 9-16 hrs – 90 questions, and 17-24 hrs = 112 questions. 1.5 Entirely self study hours: 4 hrs = 52 questions, 5-8 hrs = 105 questions, 9-16 hrs = 150 questions, 17-24 hrs = 187 questions, 24+ hrs = 300 questions. 1.6 Submit the application form along with required course materials, a detailed course outline, exam questions, if required, and the $50.00 course application fee.

2.

3.

4.

If you are a PROVIDER filing for approval from a Reciprocal State: 2.1 Make a sufficient number of photocopies of the Home State approval form to enable you to submit a copy of this application to each of the Reciprocal States where you are seeking credit. 2.2 On each application, write the Reciprocal State and the provider number assigned to you by that state in the “Reciprocal State” and adjacent “Provider #” fields. 2.3 Send the PE application, home state approval, if home state issues one, a detailed course outline, and the required fee to the reciprocal state. 2.4 Submit documentation and exam questions for Mississippi statute portion of course. If you are a HOME STATE or the designated Representative of the Home State: 3.1 After reviewing the course materials, complete the “Hrs Approved by Home State” column. 3.2 Enter the date of approval, course # assigned, course approval expiration date. Sign the PE Form OR attach the home state approval form. 3.3 If the class is not approved, note it on the bottom of the PE Form. If you are the RECIPROCAL STATE or designated representative of the Reciprocal State: 4.1 After reviewing “Hrs approved by Home State” complete the “Hrs Approved by Reciprocal State”. 4.2 Enter the date of approval, course number assigned, course approval expiration date. Sign the PE Form OR attach the reciprocal state approval form. 4.3 If the class is not approved, note it on the bottom of the Form.

Mail this form to Mississippi Insurance Department, P.O. Box 79, Jackson MS 39205-0079 Or (501 N. West Street, 1001 Woolfolk State Office Bldg, Jackson, MS 39201. For questions call 601-359-3582 or email [email protected] . . xli | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

Continuing Education Recommended Guidelines for Online Courses (Adopted by NAIC Spring 2015)

Goal: To deliver functional computer-based internet courses that offer quality insurance and/or risk management material in a password-protected online environment. Key Components:  Material that is current, relevant, accurate, and that includes valid reference materials, graphics and interactivity.  Clearly defined objectives and course completion criteria  Specific instructions to register, navigate and complete the course work  Technical support/provider representative should be available during business hours and response provided within 24hours of initial contact.  Instructors/subject matter experts must be available to answer student questions during provider business hours  Process to authenticate student identity such as passwords and security prompts  Method for measuring the student’s successful completion of course which includes the material, exam and any proctor requirements.  Process for requesting and receiving CE course-completion certificate and reporting student results to the appropriate regulator  Require each agent to enroll for the course before having access to course material.  Prevent access to the course exam before review of the course materials.  Prevent downloading of any course exam.  Provide review questions at the end of each unit/chapter and prevent access to the final exam until each set of questions are answered at a 70% rate.  Provide final exam questions that do not duplicate unit/chapter questions.  Prevent alternately accessing course materials and course exams. This does not apply if the state allows for “open book” exams.  Have monitor affidavit containing specific monitor duties and responsibilities printed for monitor’s use to direct the taking of the final exam. Monitor will complete the affidavit after the exam is completed. (This only for states that require a monitored exam).  Final Assessment (exam) Criteria:  Minimum of 10 questions for 1 credit hour course with additional 5 questions for each subsequent credit hour and a score of 70% or greater  At least enough questions to fashion a minimum of 2 versions with a least 50% of questions being new/different in each subsequent version  Inability to print the exam or to view the exam prior to reviewing material  Proctor, if required by the state, who verifies identity by photo identification and processes affidavit testifying the student received no outside assistance Procedures to determine Appropriate Number of Credit Hours:

Word Count/Difficulty Level  Divide total number of words by 180 (documented average reading time) = number of minutes to read material  Divide number of minutes by 50 = credit hours  Course difficulty level is identified by the CE provider on the CER form and should be based on the NAIC CE Standardized Terms-Definitions for basic, intermediate and advanced course difficulty levels.  Multiply number of hours by 1.00 for a basic level course; 1.25 for an intermediate level; 1.50 for an advanced course for additional study time = total number of credit hours (fractional hours rounded up if .50 or above and rounded down if .49 or less)

xlii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

Interactive Course Content  Elements included in the online course, in addition to text, such as video, animation, interactive exercises, quizzes, case studies, games, and simulations.  Interactive elements should be applicable to course material and facilitate student learning.  Only mandatory interactive elements should be included in the calculation of CE credit hours.  Calculation of CE hour credits should be based on the run time of the interactive elements.  CE providers will indicate run time of the interactive elements in the course content and upon request provide access to the state for review of the course.

Professional Designation Course  Course that is part of a nationally recognized professional designation  Credit hours equivalent to hours assigned to the same classroom course material Final Assessment  Time spent completing the final assessment should not be used in calculation of CE credit hours. Adopted by the NAIC Membership 2015

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xliii | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

Course Guidelines for Classroom Webinar/Webcast Delivery Adopted by the Producer Licensing (EX) Working Group Apr. 27, 2014 

These guidelines are intended to apply to courses conducted and viewed in real time (live) in all locations and are not intended to apply when courses have been recorded and are viewed at a later time or to other online courses.



Each student will be required to log in to the webinar using a distinct username, password and/or email. Students that view webinars in group settings which is two or more individuals should alternatively verify their participation in the form of sign-in and sign-out sheets submitted by a monitor with an attestation or verification code.



The provider will verify the identity and license number, or National Producer Number (NPN), of all students.



A provider representative, using computer-based attendance-monitoring technology, must monitor attendance throughout the course.



The provider must have a process to determine when a participant is inactive or not fully participating, such as when the screen is minimized, or the participant does not answer the polling questions and/or verification codes.



For webinars not given in a group setting, no less than two polling questions and/or attendance verification codes must be asked, with appropriate response provided, at unannounced intervals during each one-hour webinar session to determine participant attentiveness.



The provider will maintain an electronic roster to include records for each participant’s log-in/log-out times. If required by states chat history and polling responses should be captured as part of the electronic record.



When a student is deemed inactive or not fully participating in the course by the course monitor of failure to enter appropriate polling question response or verification codes, continuing education (CE) credit is denied.



All students and the instructor do not need to be in the same location.



Students in all locations must be able to interact in real time with the instructor. Students should be able to submit questions or comments at any point during the webinar session.



The course pace must be set by the instructor and does not allow for independent completion.



Instruction time is considered the amount of time devoted to the actual course instruction and does not include breaks, lunch, dinner or introductions of speakers.



One credit will be awarded for each 50 minutes of webinar/webcast instruction, and the minimum number of credits that will be awarded for webinar/webcast courses is one credit.



The provider must have a procedure that informs each student in advance of course participation requirements and consequences for failing to actively participate in the course.



A comprehensive final examination is not required.

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xliv | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET

xlv | P a g e MISSISSIPPI INSURANCE DEPARTMENT PRE-LICENSING AND CONTINUING EDUCATION GUIDELINES AND PROVIDER PACKET