11 NCAC 06A .0704          COURSES

(a)  This Rule establishes minimum standards for property, casualty, personal lines, life, accident and health or sickness and Medicare supplement, and long term care insurance prelicensing courses required under G.S. 58‑33‑30.

(b)  Insurance prelicensing programs shall comprise courses in the following subjects:

(1)           Accident and health or sickness;

(2)           Casualty;

(3)           Life;

(4)           Medicare supplement insurance and long-term care insurance;

(5)           Personal lines; and

(6)           Property.

(c)  A school shall not offer a property, casualty, personal lines, life, accident and health or sickness course comprising fewer than 20 hours or a Medicare supplement and long term care course comprising fewer than 10 hours.

(d)  The following requirements are course standards:

(1)           All courses shall consist of instruction in the subject areas described in G.S. 58-33-30(d)(2) and 58-33-30(d)(3).

(2)           Courses may also include coverage of related subject areas not prescribed by the Commissioner; however, such courses must provide additional class time, above the minimum requirement stated in Paragraph (c) of this Rule, for the coverage of such subject areas.

(3)           Prelicensing courses shall be for instructional purposes only and not for promoting the interests of or recruiting employees for any particular insurance agency or company.

(4)           Schools shall establish and enforce academic standards for course completion that assure that students receiving a passing grade possess knowledge and understanding of the subject areas prescribed for the course.  In any course for which college credit is awarded, the passing grade for such course shall be the same as the grade that is considered passing under the school's uniform grading system.

(5)           Schools shall conduct a final comprehensive course examination that covers all subject areas prescribed by the Commissioner for each course.  Schools may allow a student to make up a missed examination or to retake a failed examination in accordance with policies adopted by the school.  No final examination shall be given until a student has completed the instructional requirement.

(6)           Students shall attend a minimum of 20 hours of property, casualty, personal lines, life, accident and health or sickness instruction or a minimum of 10 hours of Medicare supplement and long term care instruction.  Time set aside for breaks, pop‑tests, quizzes, the final comprehensive course examination and other non‑instructional activities shall not count toward the minimum instructional requirement.  If a property, casualty, personal lines, life, accident and health or sickness course is scheduled for 25 or more instructional hours, a student shall attend at least 80 percent of the total hours offered by the course.

(e)  The following requirements shall be met for scheduling purposes: 

(1)           Class meetings or correspondence courses shall be limited to a maximum of eight hours of instruction in any given day.

(2)           Classroom courses shall have fixed beginning and ending dates and may not be conducted on an open‑entry/open‑exit basis.

(3)           Correspondence or Internet courses shall not have fixed beginning and ending dates and shall be conducted on an open‑entry basis.

(f)  The following shall apply to the use of text books:

(1)           Choice of classroom course text is at the discretion of each school.

(2)           Text books used in correspondence or Internet courses shall be approved by the Commissioner before use.  No text book used in a correspondence course shall be approved unless it contains instruction in the subject areas described in G.S. 58-33-30(d)(2) and 58-33-30(d)(3).

(g)  All prelicensing classroom school courses shall be taught by instructors who meet the qualifications described in Rule .0705 of this Section.

(h)  All prelicensing correspondence courses shall be monitored by instructors who meet the qualifications described in Rule .0705 of this Section.  An instructor shall be designated for each correspondence or Internet course student.

(i)  The following certification of course completion procedures shall apply:

(1)           Schools shall validate each student who successfully completes a prelicensing course with an Examination Admission Ticket/Certificate of Course Completion.  The Examination Admission Ticket/Certificate of Course Completion shall not be validated for a student prior to completion of all course requirements and the passing of the course's comprehensive final examination.

(2)           An Examination Admission Ticket/Certificate of Course Completion shall be validated for each course successfully completed by a student.  An Examination Admission Ticket/Certificate of Course Completion presented at the examination site that indicates completion of more than one course shall be invalid.

(3)           An Examination Admission Ticket/Certificate of Course Completion shall be valid for access to the examination for 90 days or a maximum of five examination attempts, whichever occurs first.  If an applicant for a license does not successfully pass the examination within 90 days or five examination attempts in the 90-day period, the applicant shall again meet the prelicensing education requirement to be eligible for the examination.

 

History Note:        Authority G.S. 58‑2‑40; 58‑33‑30(d); 58-33-132;

Eff. February 1, 1989;

Amended Eff. February 1, 2008; April 1, 1996; October 1, 1990.