Prep Training Group - Prep Training News

Suitability in Annuity Transactions: A New CE Requirement

The Illinois Department of Insurance has recently amended the insurance code to clarify the NAIC’s recommendation on required training in annuity solicitations and sales. The amendment requires that producers who hold a life insurance line of authority and solicit annuities complete a mandatory one-time 4 hour training on "Suitability in Annuity Transactions" by July 1, 2012. The 4 hours will apply to the 21 general CE hour requirement. After July 1, 2012 any producer that holds a life insurance line of authority and wishes to sell annuities must complete the education before soliciting.

Very early in the new year, Prep will be offering the 4 hour annuities course by self-study (print or internet) or by seminar. Call us for details.

Producer Licenses Renew Last Day of Birth Month

Effective July 2010, the Illinois Department of Insurance started the conversion of all producer renewals to the last day of the producer's birth month. If a producer renews or applies for a license after April 2011, the licensing fee is prorated if the total days of licensing granted are less than a full two years. In simpler words, to get your renewal date to your birth month, you may pay less than $180 because your license renewal period is less than two years. Your next renewal will be on target for 2 years: Birth month 2 years later to birth month.

Important Information about Pre-licensing and Continuing Education

The Illinois Department of Insurance has changed Insurance Statutes and Regulations regarding insurance pre-licensing and continuing education. Effective January 1, 2010 the key changes are:

Pre-licensing education hours will increase from 15 hours for each class of insurance to 20 hours with 7.5 of the 20 hours to be completed in a live classroom setting. Translation: Internet and self-study programs will no longer be valid. L&H and P&C must each be a 2-day class.

Pre-licensing must be completed prior to taking the exam. Candidates will be required to show proof of pre-licensing completion by bring a letter of completion to the test center. Translation: The loop-hole of passing the exam, then completing the pre-licensing education is closed.

Continuing education hours will decrease to 24 hours from 30 hours. However, three (3) of the 24 hours must be completed in a live classroom setting on ethics. Translation: During a producer renewal period, 3 CE hours must be met in an ethics classroom. This means producers renewing January 1, 2010 or later must complete the live 3 hour ethics class. No producer will be grandfathered.

Prep Training Group is prepared! For the past 22 years, we have offered 2-day pre-licensing classes on the weekends in the Oak Brook area that already meet this new requirement. Besides Oak Brook, we now offer classes in the Chicago Loop and Schaumburg, and have introduced week day classes. See Class Schedules.

Prep offers 3-hour classroom Ethics in Oak Brook, Chicago Loop and Schaumburg. Tuition and book is $49. However, if 2 producers enroll at the same time in the same class, the second is 50% off; i.e. 2 for $75! Plus receive a $10 coupon at class towards a print self-study CE course. See CE and Ethics for course selections.

We can also provide an on-site Ethics class. Please call us for details.

Important Information about the Department of Insurance and the State Based Systems

Since July 2010, State Based Systems has been responsible for producer insurance record keeping. SBS was developed by the National Association of Insurance Commissioners (NAIC) to serve the regulatory needs of states, improve the efficiency of the producer licensing process and improve the uniformity of multi-state licensing. All electronic reporting from education providers (such as, Prep Training) goes to State Based Systems. The transition has allowed Illinois to depart from using SSNs as identifiers of Illinois licensees. NPNs (national producer numbers) are now used. Most importantly for producers, they have easy access to their insurance education transcript and license printing capabilities. Go to www.statebasedsystems.com and click on "Print your education transcript".  You can also click on "Print your license".

Pre-licensing and Ethics Class Enrollment on Our New Web Site

Prep is pleased to announce the unveiling of our new web site! One of the features of our new web site is our class enrollment form. After viewing our Class Schedule and selecting a class, the registration process can be expedited by submitting an enrollment form on our web site. You complete the form which asks for basic information such as name, address, telephone number, email address, etc. (We do not accept sensitive information on the enrollment form. Credit cards numbers and SSNs will be handled with a telephone follow-up call from one of our customer service reps.) By clicking on the submit button, the enrollment form is emailed to you for your records and to Prep Training. Within one business day, we will call you to confirm your class registration, and you are given our utmost attention and are free to ask any questions you may have about the class, state or FINRA exam, or licensing procedure. All class registrations are followed up with an email confirmation letter with the class location. If books are being shipped, a print confirmation letter, class map and study outline will be sent.

Note: You always have the option of calling us at 630.260.1630 to register over the phone.

Many managers and recruiters rely on us to explain the licensing procedure. They're busy, and they know that we'll handle our end efficiently and effectively. Call us at 630.260.1630 and be rest assured that a friendly, knowledgeable customer services representative will answer your questions.

3 Year CE Rule Eliminated

The rule that required producers to keep track of CE courses completed during the past 36 months has been eliminated. The new rule states that a producer can repeat a CE course as long as the course has not been completed during the current renewal period. Courses completed during the prior renewal periods can be repeated. (A renewal period is 24 months.)