NAIFA Membership Deserves CE Credit

CE Credit for Association Membership

The Issue

Continuing Education is an important part of any financial services professional’s training.  The industry is forever growing and shifting as the market and consumers' needs grow and shift.  Participation and membership with an industry association provides valuable education and insights to its members and accomplish many of the same goals and traditional or web-based continuing education (CE) credits.  Recognizing the value of association membership, several states have enacted laws or regulations that permit financial advisors to receive a portion of their required continuing education (CE) credit for their active membership and participation in a professional agent trade association, still subject to the approval of the state insurance department.

NAIFA Position

NAIFA strongly supports legislation that would permit insurance producers to receive CE credit for their membership in a professional insurance association. Professional insurance associations, like NAIFA, promote high standards of ethical conduct among their members and provide educational programs and professional development opportunities to association members. We believe that state proposals to allow advisors to receive some CE credit for association membership could encourage financial advisors to join professional insurance associations, which would ultimately benefit consumers by providing access to better-qualified advisors.

NAIFA developed its model state legislation that would allow financial advisors to receive some CE credit for actively participating as members of professional insurance associations, subject to the approval of state insurance commissioners.

The NAIFA model legislation would allow financial advisors to receive up to four hours of CE credit per reporting period for membership in a professional insurance association. Under the NAIFA model, members must demonstrate active participation in the association to qualify for such CE credit. The NAIFA model gives authority to state insurance commissioners to define the term “active participation," specify the associations where membership would be eligible for CE credit, and require any other criteria the commissioners may deem necessary. The NAIFA model legislation is based on laws already enacted in some states.

• NAIFA Continuing Education Credit for Membership in a Professional Insurance Association Model Act

As of May 4, 2023, the following states allow continuing education credits for membership of a professional insurance association: