SENATE BILL REPORT
SB 5026
As of January 6, 2023
Title: An act relating to the elimination of prelicensing education requirements for licensed insurance producers.
Brief Description: Eliminating prelicensing education requirements for licensed insurance producers.
Sponsors: Senators Mullet and Dozier.
Brief History:
Committee Activity: Business, Financial Services, Gaming & Trade: 1/10/23.
Brief Summary of Bill
  • Removes pre-licensing education requirements for first-time resident insurance producer licensee applicants.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE
Staff: Kellee Gunn (786-7429)
Background:

Resident Insurance Producer Licensing in Washington.  All persons wishing to sell, solicit, or negotiate insurance contracts in Washington State for any line of insurance must be licensed as an insurance producer.  Insurance producer licenses are available through the Office of the Insurance Commissioner (OIC).  Licensing requirements differ depending on the major line of authority (LOA) sought, such as life, disability, property, casualty and personal lines.

 

First-time Resident Producer Licensees in Washington.  First-time resident producer license applicants must:

  • be at least 18 years of age;
  • complete pre-licensing education (PLE) for each major LOA wished to be obtained;
  • pay any required fees; and
  • successfully pass the state examinations for the LOA in which they have applied.  

 

All persons applying for a resident insurance producer license must not have committed any act that is grounds for dismissal.  Each applicant shall furnish fingerprints for submission to the governmental agency or entity authorized to receive this information for the state and national criminal background check.

 

Resident Producers From Other States Who Move to Washington.  Any resident producer licensed in another state, who wishes to move their residence to Washington, may waive the PLE and exam requirements if they apply for their Washington State license, cancel their previous home state license, and submit fingerprints within 90 days of moving to the state.

 

Continuing Education.  All licensees must follow up with continuing education requirements over the course of their career.

 

Pre-licensing Education Requirements.  Twenty-four states, including Washington, require first-time resident producer licensees to complete PLEs.  The number of hours required of the PLE differs by state and major LOA.  In Washington, an applicant must complete 20 hours of PLE for each LOA wished to be obtained.
Summary of Bill:

Those seeking a license as a first-time resident insurance producer are not required to complete pre-licensing education to obtain their insurance producer license in Washington.
Appropriation: None.
Fiscal Note: Requested on January 4, 2023.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.