Continuing Education: A Lifelong Classroom For Health Insurance

In the state of Texas, insurance producers and adjusters are required to complete 24 hours of continuing education every two years to renew their licenses, with at least 12 hours completed in a classroom or classroom equivalent setting. This includes three hours of ethics training. For those selling annuities, a one-time four-hour Annuity Suitability Best Interest Standard course is also required, followed by eight hours of annuity CE every licensing period.

Classroom Equivalent Requirements

To maintain a Texas insurance producer's license, insurance producers and adjusters must complete 24 hours of continuing education every 2 years, with 3 of those hours focusing on Ethics/Consumer Protection or ethics and morality. 50% of the required CE hours must be completed in a classroom setting or via a classroom-equivalent setup. This equates to 12 hours.

Classroom-equivalent courses can be completed online and cover a range of topics, including:

• Ethical Practices
• Ethical Decision-Making
• Ethical Duties
• Ethical Situations
• Laws Governing Ethical Conduct
• Insurance Industry Code of Ethics
• Annuity Principles and Concepts
• Annuity Benefit Payment Options
• Uses of Annuities
• Qualified Retirement Plan Basics
• Plan Types, Characteristics, and Purchasers
• Federal Taxation of Life Insurance
• Disability Income
• Group Health
• Dental Insurance
• Federal Taxation of Health Insurance
• Qualified Plans
• Group and Individual Disability Income Insurance
• Social Security Disability Income
• Workers' Compensation
• Business Disability Insurance Coverages
• Group Conversion
• Small Employer Medical Plans
• Indemnity Plans
• Employer Group Dental Expense
• Health Savings Accounts and Other Tax-Favored Health Plan Tax Features

Ethics Training

Understanding Ethical Duties

The first step in ethics training is to establish a clear understanding of the ethical duties and responsibilities of insurance producers. This includes recognizing the distinction between ethics and morals and grasping the importance of ethical practices in the insurance industry. By exploring topics such as ethical decision-making models, insurance professionals can develop a strong foundation for resolving ethical dilemmas that may arise in their work.

Ethical Situations and Laws

The next crucial aspect of ethics training is to delve into specific ethical situations that insurance professionals may encounter. This involves discussing real-world scenarios and examining the applicable laws and regulations that govern ethical conduct in the industry. By providing practical examples, insurance producers can better understand how to navigate complex ethical challenges and ensure compliance with relevant laws.

Ethical Decision-Making Tools

Industry Code of Ethics

In addition to decision-making tools, ethics training covers the insurance industry's specific code of ethics. This code outlines the expectations and standards of conduct for insurance professionals, including producers, agencies, and carriers. By familiarizing themselves with this code, insurance producers can align their practices with the industry's ethical framework and maintain consistency in their ethical behavior.

Ethical Considerations in Insurance Practices

Case Studies and Scenarios

To reinforce the concepts learned, ethics training incorporates case studies and realistic scenarios. These case studies present complex ethical dilemmas that insurance producers may encounter in their careers. By analyzing and discussing these scenarios, insurance professionals can enhance their critical thinking skills and gain insights into the practical application of ethical principles in their industry.

Annuity Requirements

Texas

In Texas, insurance producers are required to take 24 hours of Insurance Continuing Education (CE) every 2 years, with 3 hours focusing on Ethics. 50% of the total CE requirement (12 hours) must be met through classroom or classroom-equivalent courses.

For agents selling annuities, there are additional requirements. Before selling any annuity products, agents must complete a one-time, 4-hour Annuity Best Interest certification course approved by the Department of Insurance and provided by a Department of Insurance-approved education provider. After this initial requirement, agents must complete 8 hours of annuity CE during each 2-year licensing period. The 4-hour Annuity Best Interest course does not count toward this CE requirement or the overall CE requirement needed to renew the insurance license.

New York

In New York, 15 credits of CE are required to renew or relicense certain insurance licenses. These credits must be accumulated during the licensing period, which begins with the effective date of the license. For relicensing, credits from the previous licensing period can be used, as well as any credits completed up to the date the re-licensing application is submitted.

California

California requires 24 hours of CE, including 3 hours of Ethics, every 2 years. Annuity requirements in California are as follows:

• Starting January 1, 2025, all Life producers must complete 8 hours of Annuity Training before soliciting any annuity business.
• Also, from January 1, 2025, Life producers who solicit annuity business must complete a new 4-hour Annuity Training course before their next license renewal.

Long-Term Care Training Requirements

Long-term care insurance is a type of health insurance that covers the costs of long-term care services, such as home health care, nursing home care, or personal care in a facility. Long-term care insurance is an important option for individuals who may need assistance with activities of daily living due to illness, injury, or old age. Obtaining a license to sell long-term care insurance requires completing specific training requirements, which vary by state. These requirements are in place to ensure that insurance agents and brokers are knowledgeable about the product and can provide accurate information to potential customers.

In the state of California, for example, agents or insurer representatives who sell long-term care insurance must complete eight hours of training in each of the first four 12-month periods after obtaining their license. For licensees who received their license before January 1, 1992, they are required to complete eight hours of training before each license renewal. These training requirements are set by the California Insurance Code and are mandatory for anyone selling long-term care insurance in the state.

Other states have similar long-term care training requirements for insurance agents. For instance, Illinois mandates a one-time training course of at least eight hours for resident producers, followed by ongoing training of at least four hours before each license renewal. Alabama, on the other hand, requires resident producers to take an initial eight-hour long-term care training course, followed by a four-hour course every 24 months for recertification.

It is important to note that some states, like Hawaii, Mississippi, and Washington, D.C., do not have a long-term care training requirement for insurance agents. In these states, there is no mandatory training to sell long-term care insurance. However, insurance companies that offer long-term care policies may have their own training requirements for agents, so it is essential to check with the specific carrier.

Additionally, some states have unique training requirements that predate the DRA/NAIC training model and are not reciprocal with other states. California, Connecticut, Indiana, and New York are known as the "Original Four" states with these distinct training guidelines. This means that any long-term care training completed in these states will not be recognized in other states, and vice versa.

To summarize, long-term care training requirements for insurance agents vary across the United States. It is crucial for individuals seeking to sell long-term care insurance to familiarize themselves with the specific mandates of their state and ensure they meet all necessary training criteria. These regulations are in place to protect consumers and ensure that agents provide accurate and ethical guidance when offering long-term care insurance products.

Medicare Training Requirements

To be certified to sell Medicare supplemental insurance, there are specific training requirements that must be met. An initial eight-hour Medicare-related course is mandatory, followed by four hours of Medicare-focused continuing education before each renewal. This is in addition to any broader state requirements for insurance license renewals. For example, in Texas, insurance licenses must be renewed every two years, and producers must complete 24 hours of continuing education, including three hours on ethics, during each renewal cycle.

The Centers for Medicare & Medicaid Services also offer free, self-paced web-based training on a range of topics for health care providers. These courses do not offer continuing education credits, but they can be useful for staying up-to-date with Medicare-related knowledge. Some of the topics covered include LGBTQI+ patient care, fraud recognition and prevention, coding, and billing.

It is important to note that Medicare training requirements may vary by state and license type, so it is always advisable to check with your state's insurance department or governing body for the most accurate and up-to-date information.

Frequently asked questions