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The deadline of June 30, 2011 when Fire and casualty broker-agents will be required to obtain the accident and health agent license to transact accident and health insurance is fast approaching.
Earlier this year, the California Department of Insurance agreed to an IBA West request for a six-month delay in the AB 2782 requirement for existing fire-and-casualty licensees to obtain a separate license in order to continue selling health insurance.
The department explained the decision to delay implementation arose from the fact that AB 2782 was signed by the Governor in late September 2010 and many broker agents were unaware of the new requirement allowing just six weeks for broker agents to obtain the accident and health agent license prior to the January 1, 2011 effective date. In addition, the department realized the number of affected agents and brokers was significantly more than what was originally estimated.
AB 2782 was the result of the CDI's desire, which IBA West supported, to enhance professional training and consumer protection, and to bring California insurance laws into conformity with “model” provisions adopted by the National Association of Insurance Commissioners, and otherwise with national norms, effectively repeals a provision—virtually unique to California—that has permitted fire and casualty insurance brokers and agents to sell “disability insurance,” a phrase the Insurance Code uses as a synonym for health insurance, without a separate health or life license.
For more information on the new requirements click HERE to read this week's Question of the Week.