DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

                             INSURANCE BUREAU

                   PRE-LICENSURE EDUCATION REQUIREMENTS


(By authority conferred on the commissioner of insurance  by   sections   210 
and 1204a of Act No. 218 of the Public Acts of  1956,   as   amended,   being 
SS500.210 and 500.1204a of the Michigan Compiled Laws)


R  500.1   Definitions.
  Rule 1. As used in these rules:
  (a) "Code" means Act No. 218 of the Public Acts  of   1956,   as   amended, 
being S500.100 et seq. of the Michigan Compiled Laws.
  (b) "Council" means the agent education advisory council  as   created   by 
section 1204b(1) of the code.
  (c) "Instructor"  means  the  person  responsible  for   the   conduct   of 
instruction of the program. The  term  does  not  mean  a   person   who   is 
retained to teach a portion of a program as a guest speaker  or  lecturer.

  History: 1988 AACS.


R  500.2   Program review and registration.
  Rule  2.  (1)  For  a  program  to  be  registered    as    an    insurance 
agent/solicitor  program  of   study,   program    course    materials    and 
examinations and resumes  of  instructors  shall  be   submitted   in   their 
entirety to the council for review. The  council  will   recommend   to   the 
commissioner of insurance those  courses  which  are  found   to   meet   the 
standards set forth in these rules for registration  as  qualified  insurance 
agent/solicitor program courses.
  (2) Any change in course  material  or  instructors   after   approval   is 
granted shall also be submitted to the  council  not  less   than   2   weeks 
before implementation.
  (3) The council may, at any time,  request  a  review  of   any   and   all 
materials, classrooms, and instructors.

  History: 1988 AACS.


R  500.3   Property   and   casualty     insurance     agents;     curriculum 
requirements.
  Rule 3. To qualify as a registered insurance  agent/solicitor  program   of 
study on the subjects of property  and  casualty   insurance,   a   classroom 
instruction or home study course shall provide for a minimum of  40  hours of 
study. These 40 hours shall include all of the following areas,  but  may  be 
taught in any order or combination the instructor chooses:
  (a) Twelve hours on the principles of property  insurance,  including   the 
following   subjects   and   their    definitions,    characteristics,    and 
application:
  (i) Michigan standard fire policy.
  (ii) General property form.
  (iii) Home insurance.
  (iv) Personal and commercial automobile insurance.
  (v) Inland marine insurance.
  (vi) Commercial package policies.
  (vii) Boiler and machinery insurance.
  (viii) Rates and rate changes, including coinsurance.
  (ix) Business interruption insurance.
  (b) Six hours  on  professional  ethics  and  the   requirements   of   the 
insurance laws of Michigan, including, but not limited  to,   the   following 
chapters of the Michigan insurance code:
  (i) Chapter 12 of the code, being  S500.1200  et  seq.  of   the   Michigan 
Compiled Laws.
  (ii) Chapter 20 of the code, being S500.2001  et  seq.  of   the   Michigan 
Compiled Laws.
  (iii) Chapter 21 of the code, being S500.2101 et  seq.  of   the   Michigan 
Compiled Laws.
  (iv) Chapter 31 of the code, being S500.3101  et  seq.  of   the   Michigan 
Compiled Laws.
  (c) Twenty-two hours on the principles of  liability  insurance,  including 
the  following  subjects  and  their   definitions,   characteristics,    and 
application:
  (i) Basic principles of liability.
  (ii) On-premises insurance.
  (iii) Off-premises insurance.
  (iv) Products and completed operations insurance.
  (v) Contractual liability insurance.
  (vi) Comprehensive general liability insurance.
  (vii) Personal liability insurance  as  contained  in   home,   auto,   and 
personal umbrella policies.
  (viii) Workers' compensation insurance.

  History: 1988 AACS.


R  500.4   Life and health agents; curriculum requirements.
  Rule 4. (1) To qualify as a registered insurance agent/solicitor program of 
study on the subject of health insurance, the classroom instruction  or  home 
study course shall provide for a minimum of 20  hours  of  study.   These  20 
hours shall include all of the following areas, but may  be  taught   in  any 
order the instructor chooses:
  (a) Fourteen hours on the principles of health  insurance,  including,  but 
not  limited  to,  the   following   subjects    and    their    definitions, 
characteristics, and application:
  (i) Loss of time or disability policies.
  (ii) Expense incurred policies.
  (iii) Accidental death and dismemberment policies.
  (iv) Hospital indemnity policies.
  (v) Medicare supplement policies.
  (vi) Dread disease policies.
  (vii) Long-term care policies.
  (viii) Group health insurance policies.
  (ix) Major medical policies.
  (x) Excess loss policies.
  (xi) Blanket disability policies.
  (b) Six hours  on  professional  ethics  and  the   requirements   of   the 
insurance laws of Michigan, including, but not  limited  to,   all   of   the 
following chapters and subjects:
  (i) Chapter 12 of the code, being S500.1200  et  seq.   of   the   Michigan 
Compiled Laws.
  (ii) Chapter 20 of the code, being S500.2001 et  seq.   of   the   Michigan 
Compiled Laws.
  (iii) Chapter 34 of the code, being S500.3400 et seq.   of   the   Michigan 
Compiled Laws.
  (iv) Chapter 36 of the code, being S500.3600 et  seq.   of   the   Michigan 
Compiled Laws.
  (v) R 500.651 to R 500.669 of the Michigan Administrative Code.
  (vi) The definitions and characteristics of all of the following:
  (A) Consolidated omnibus budget reconciliation act (Title X  of  COBRA,  29 
U.S.C. S10001 et seq.).
  (B) Third-party administrators.
  (C) Multiple employer welfare arrangements.
  (D) Administrative services only contracts.
  (E) Coordination of benefits.
  (2) To qualify as a  registered  insurance   agent/solicitor   program   of 
study on the subject of life insurance, the classroom  instruction  or   home 
study course shall provide for a minimum of 26 hours of   study.   These   26 
hours shall include all of the following areas, but may be  taught   in   any 
order the instructor chooses:
  (a) Twenty hours on the principles of life insurance,  including,  but  not 
limited  to,  all  of  the  following  subjects   and   their    definitions, 
characteristics, and application:
  (i) All  of  the  following  types  of  policies   and   principal   policy 
provisions:
  (A) Term life policies.
  (B) Whole life policies.
  (C) Endowment policies.
  (D) Universal life policies.
  (E) Variable life policies.
  (ii) Annuities.
  (iii) Premiums and dividends.
  (iv) Group life insurance.
  (b) Six hours  on  professional  ethics  and  the   requirements   of   the 
insurance laws of Michigan, including, but not  limited  to,   all   of   the 
following chapters and subjects:
  (i) Chapter 12 of the code, being S500.1200  et  seq.   of   the   Michigan 
Compiled Laws.
  (ii) Chapter 20 of the code, being S500.2001 et  seq.   of   the   Michigan 
Compiled Laws.
  (iii) Chapter 40 of the code, being S500.4000 et seq.   of   the   Michigan 
Compiled Laws.
  (iv) Chapter 44 of the code, being S500.4400 et  seq.   of   the   Michigan 
Compiled Laws.
  (v) R 500.1371 to R 500.1387 of the Michigan Administrative Code.
  (3) To qualify as a  registered  insurance   agent/solicitor   program   of 
study on  the  subjects  of  life  and  health   insurance,   the   classroom 
instruction or home study course shall provide for a minimum of  40  hours of 
study. These 40 hours shall include, but not  be  limited  to,  all  of   the 
following:
  (a) Fourteen hours on the principles of health insurance  as  required   by 
subrule (1)(a) of this rule.
  (b) Twenty hours on the principles of  life  insurance   as   required   by 
subrule (2)(a) of this rule.
  (c) Six hours  on  professional  ethics  and  the   requirements   of   the 
insurance laws of Michigan as required by subrules (1)(b)   and   (2)(b)   of 
this rule.

  History: 1988 AACS.


R  500.5   Home-study courses.
  Rule 5. (1) For home-study courses, contact between  the   instructor   and 
student  shall  be  maintained  through  homework   and   examination.    For 
life/health courses, the homework or examination shall  cover  the   subjects 
and chapters of law specified in R 500.4.  For   property/casualty   courses, 
the homework or examination shall  cover  subjects  and   chapters   of   law 
specified in R 500.3.
  (2) Records of  response  from  students  shall  be   maintained   by   the 
instructor for a period of 1 year.

  History: 1988 AACS.


R  500.6   Instructor requirements.
  Rule 6. (1) To qualify  as  an  instructor  of   a   registered   insurance 
agent/solicitor program of study, a person shall possess at least  1  of  the 
following:
  (a) Three years of experience in the line of insurance which   is   to   be 
taught.
  (b) Three years of experience in teaching.
  (c) Three years of experience in insurance and teaching combined.

  History:  1988 AACS; 1997 AACS.