CHAPTER 230

FORMERLY

HOUSE BILL NO. 302

AN ACT TO AMEND CHAPTER 17, TITLE 18, OF THE DELAWARE CODE RELATING TO THE EXAMINATION, CONTINUING EDUCATION AND LICENSING OF AGENTS, BROKERS, SURPLUS LINES BROKERS, CONSULTANTS, LIMITED REPRESENTATIVES, FRATERNAL REPRESENTATIVES, ADJUSTERS, AND APPRAISERS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Section 1724, Chapter 17, Title 18 of the Delaware Code, by striking the Section in its entirety and by substituting in lieu thereof a new Section 1724 to read as follows:

"§1724. Written Examination

(a) The Commissioner shall subject each applicant, not otherwise exempted from the requirement of written examination, to a written examination which the applicant must personally take and pass to the satisfaction of the Commissioner.

(b) If the applicant is a partnership or corporation and is not otherwise exempt, the written examination must be successfully taken by each individual who is to be named in the certificate of authority for the partnership or corporation.

(c) Each written examination shall be approved for use by the Commissioner and shall reasonably test the applicant's knowledge of the lines of insurance, policies and transactions to be handled under the certificate of authority applied for and may also test the applicant's knowledge of the duties and responsibilities of a licensee and of the pertinent insurance laws of the State.

(a) There shall be a written examination for each line of insurance and an applicant shall take and pass the examination for each line the applicant proposes to transact under a certificate of authority.

(b) All written examinations shall be conducted and administered in accordance with regulations issued by the Commissioner. Such examinations may be administered and graded by an independent testing service, as specified by contract.

(1) The Commissioner may require a reasonable waiting period between re-examinations for any applicant who twice fails to pass a written examination covering the same line of insurance. The waiting period shall not exceed six (6) months.

(g) The Commissioner may, by regulation, establish a prerequisite for examination and requirement for a reasonable number of hours of formal instruction presented by an educational institution. Such regulation, if issued, will specify the number of hours required for life and health or the property and casualty lines or for both and will include the procedures for course approval and verification of the training received."

Section 2. Amend Section 1725, Chapter 17, Title 18 of the Delaware Code, by striking said Section in its entirety and by substituting in lieu thereof a new Section 1725 to read as follows:

"§1725. Continuing Education

in addition to meeting the standards prescribed in other sections of this Chapter for the issuance of a license, the Commissioner may promulgate regulations which will establish reasonable standards and criteria for requiring additional or continuing education of licensees in order to ensure the maintenance or Improvement of a licensee's insurance skills and knowledge. The Commissioner shall not permit persons to continue to be licensed under this Chapter unless such persons demonstrate compliance with the additional or continuing education requirements."

Section 3, Amend Section 1723, Chapter 17, Title 18 of the Delaware Code, by inserting a colon ";" after the word "examination" and striking the language "except for the examination required by 51725 of this Chapter:" in its entirety as they appear in the first sentence of said §1723.

Approved February 8, 1984.