INSURANCE PRODUCER LICENSE ELIGIBILITY                                        H.B. 4044 (H-2):

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

House Bill 4044 (Substitute H-2 as reported without amendment)

Sponsor:  Representative Michele Hoitenga

House Committee:  Insurance

                             Ways and Means

Senate Committee:  Insurance and Banking

CONTENT

The bill would amend the Insurance Code to do the following:

-- Modify the circumstances under which the Director of the Department of Insurance and Financial Services could not issue a resident or nonresident insurance producer license.

-- Include circumstances under which the Director could refuse to issue a license.

-- Specify that a provision allowing the Director to place on probation, suspend, or revoke an insurance producer's license or may levy a civil fine or any combination of actions, and not to issue a resident or nonresident insurance producer license if the licensee has been convicted of a felony would apply to an individual who had been convicted of a felony within 10 years before a license application was filed.

-- Allow the Director to place on probation, suspend, or revoke an insurance producer's license or could levy a civil fine or any combination of actions, and prohibit him or her from issuing a license, for having been convicted of a felony involving any of the following, regardless of the date of conviction: a) violence or threat of violence against an individual, including domestic violence; b) criminal sexual conduct; and c) a felony of a fiduciary nature or financial nature such as fraud, embezzlement, bribery, or extortion.

-- Allow the Director to place on probation, suspend, or revoke an insurance producer's license or could levy a civil fine or any combination of actions, and allow him or her to refuse to issue a resident or nonresident insurance producer license for having been convicted of a felony other than a felony described above.

-- Require the Director to issue, after examination, investigation, and interrogatories, a resident or nonresident insurance producer license to an applicant if the Director determined that the applicant possessed good moral character to act as an insurance producer.

MCL 500.1205 & 500.1239                                      Legislative Analyst:  Stephen Jackson

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  10-23-19                                      Fiscal Analyst:  Elizabeth Raczkowski

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.