DEPARTMENT OF REGULATORY AGENCIES
Division of Insurance
3 CCR 702-1
Administrative procedures
Proposed Amended Regulation 1-2-5
Minimum Training Requirements For Insurance Producer Licensure
Section 1	Authority
Section 2	Scope And Purpose
Section 3	Applicability
Section 4	Training Requirements
Section 5	Methods Of Satisfying Training Requirements
Section 6	Instructor Qualifications
Section 7	Qualifying Courses Or Programs
Section 8	Program Or Course Standards
Section 9	Compliance
Section 10	Severability
Section 11	Further Information And Submittals
Section 12	Effective Date
Section 13	History
Section 1.	Authority
This regulation is promulgated under the authority of  § § 10-1-109, 10-2-104, and 10-2-201(2), C.R.S.
Section 2.	Scope And Purpose
This regulation sets forth the requirements, procedures, and standards for prelicensure education as mandated by  § 10-2-201, C.R.S., and incorporates changes made to  § 10-2-202(1)(d), C.R.S. that became effective January 1, 2002. These are:
A.	The basic requirements for such training and the standards for courses and programs to qualify for approval by the Commissioner;
B.	The procedures and standards that the Commissioner will utilize in the approval of training courses and programs including those of individual insurance companies;
C.	The procedures for an applicant for a producer license to submit evidence that the training requirements have been met; and
The reciprocity requirements concerning prelicensure education for nonresidents.
Section 3.	Applicability
The requirements and provisions of this regulation apply to new applicants and previously licensed producers attempting to reinstate a previously held license expired for more than one year.

Section 4.	Training Requirements
The training requirements are 50 hours of approved course(s) or program(s) for a license showing the authority to write life insurance, 50 hours of training for a license showing the authority to write accident and health insurance, 50 hours of training for a license showing the authority to write property and casualty insurance, and 20 hours of training for a license showing the authority to write personal lines insurance. The following chart sets forth the hours required for each license authority.

Life Insurance	Accident & Health	Property & Casualty	Personal Lines	
		Property	Casualty		
50 hours	50 Hours	50 Hours	50 Hours	20 Hours	
Training is required in the following areas:

Principles of Insurance	3 hours	
Legal Concepts and Regulations	4 hours	
Ethics	3 hours	
Property Insurance	20 hours	
Casualty Insurance	20 hours	
Life Insurance	40 hours	
Health Insurance	40 hours	
Personal Lines	10 hours	
For those individuals applying for more than one authority, the 3 hours of Principles of Insurance, the 3 hours of Ethics, and the 4 hours of Legal Concepts and Regulations need only be taken once.
The list of required curricula, including the required 9 hours of property and casualty core topics is set forth in Bulletin 13-94.
As stated in §§ 10-2-202(1)(d) and 10-2-501, C.R.S., prelicensure education may not be required of an individual who is applying for a nonresident license in Colorado provided they have satisfied prelicensure education requirements in their home state pertinent to the line or lines of authority being applied for in Colorado.
The certificate of prelicensing course completion is valid for one year from the completion of the course or passing of provider’s self study proctored examination.  If the year period expires before the student passes the licensing exam or applies for a license, the student will not be eligible to sit for another licensing examination for that type of license until the student completes another approved prelicensing education course for that license type.
Section 5.	Methods Of Satisfying Training Requirements
The required training can be satisfied in the following ways:
A.	Completion of a baccalaureate degree program with a major in insurance from an accredited university or college;
B.
1.	Professional designation through a recognized course of study, i.e., CLU, CPCU, AAI, RHU, CHFC, or other designation program approved by the Commissioner; or
2.	A combination of approved courses and or portions of approved professional designation programs totaling the 50-hour requirement;
C.	Completion of a full time prelicensure education program operated by a qualified domestic company or a company with a qualified home office located in Colorado; or
D.	Completion of approved courses or programs meeting the 50-hour requirement; or
E.	Satisfaction of a prelicensure course in the former state of licensure if entering Colorado on a letter of clearance pursuant to  § 10-2-202(1)(c), C.R.S.
Any qualified instructor may receive credit for any approved course taught.
Section 6.	Instructor Qualifications
Instructors must meet one or more of these criteria:
A.	Demonstrated competence in the subject area;
B.	A professional insurance designation; or
Academic qualifications (either by specific degree or by demonstrated experience in instructing or teaching).
Section 7.	Qualifying Courses Or Programs
Any course or program must be submitted to the Commissioner for approval using the “Program of Training Approval Request”  form set forth in Bulletin 13-94. Any full-time program of prelicensure education operated by a company with a qualified home office located in Colorado will not be required to submit courses for review and certification by the Commissioner. Course approval requests must be accompanied by the following:
A.	Course or program outline showing individual topic(s) to be covered and hours to be satisfied.
B.	Copies of all proposed study materials. Publicly published text or other study materials require submission of the title, edition date, publisher, and authority. The Division may request the text or other materials, as necessary,
C.	Instructor qualifications.
D.	Method of measuring satisfactory completion, and;
E.	Payment of a nonrefundable fee, currently $20.00, as authorized by  § 10-2-104, C.R.S. Once approved, a course may be offered for three years without additional notice to the Division of Insurance so long as the course content is not materially changed, except to reflect changes in the insurance laws.
Section 8.	Program Or Course Standards
One of the following methods shall be used in measuring satisfactory completion of a course:
A.	Correspondence courses must have a final examination that is monitored by a disinterested third party.  Final examination is a closed book examination taken and passed by a producer without assistance and personally monitored by a disinterested third party, who is not a minor, not related to the producer, his immediate supervisor, or his/her employee.  A score of 70% or above is required for the examinee to pass the examination.
B.	Classroom courses must contain a final examination that is monitored by a qualified instructor from the providing organization.  Final examination is a closed book examination taken and passed by a producer without assistance and personally monitored by a disinterested third party, who is not a minor, not related to the producer, his immediate supervisor, or his/her employee.  A score of 70% or above is required for the examinee to pass the examination.
C.	Passage of a nationally recognized insurance test for a professional designation will be evidence of successful completion.
Section 9.	Compliance
The Division of Insurance or its designee may conduct audits of producers, sponsoring organizations, or qualified instructors to verify that the approved courses are administered as filed with the Division of Insurance and to determine compliance with  § 10-2-203, C.R.S., and this regulation.
Noncompliance with this regulation or the applicable provisions of Title 10 by institutions, instructors, or organizations conducting approved courses may result in termination of course approval.
Section 10	Severability
If any provision of this Regulation or the application thereof to any person or circumstance is for any reason held to be invalid the remainder of the regulation shall not be affected.
Section 11	Further Information And Submittals
Any submittals or questions should be directed to:
Licensing Administrator
Colorado Division of Insurance
1560 Broadway, Suite 850
Denver, Colorado 80202
Phone (303) 894-7499
Section 12	Effective Date
This regulation is effective March 31, 2007.
Section 13	History
Original Regulation 1-2-5, Effective January 1, 1995.
Emergency Regulation 01-E-4, Effective January 1, 2002
Temporary Regulation 02-E-2, Effective April 1, 2002
Amended Regulation 1-2-5, Effective May 1, 2002.
Amended Regulation 1-2-5, Effective March 31, 2007.