Enrolled Bill Summary

House Bill 4030	House Author:  Smithee
Effective:  9-1-21	Senate Sponsor:  Hancock

            House Bill 4030 amends the Insurance Code to revise the law relating to the licensing and regulation of insurance professionals. The bill eliminates the subagent designation for individuals acting for or on behalf of an agent and removes the requirement for a corporation or partnership licensed by the Texas Department of Insurance (TDI) to register separately with TDI each of the locations from which it will conduct business in Texas. The bill extends the period of validity for a temporary insurance agent license and gives TDI the authority to deny an application for a temporary license on certain grounds. The bill authorizes TDI to suspend the issuance of a provisional permit if the processing time for license applications falls below a certain threshold.

House Bill 4030 increases the number of hours of continuing education in ethics that a holder of a TDI‑issued license is required to complete during each license renewal period. The bill requires a license issued to a nonresident agent licensed in another state to be automatically suspended, canceled, or revoked if the licensee's home state suspends, cancels, or revokes the licensee's corresponding resident license and removes the requirement for a nonresident agent seeking to transition to a resident agent to include a clearance letter with their license application. The bill removes requirements for a nonresident public insurance adjuster to include a certificate or letter of authorization with their license application and to file an annual affidavit certifying their understanding of relevant laws, rules, and contract terms and conditions.

House Bill 4030 eliminates the insurance services representative license and the life and health insurance counselor license and provides for the conversion of those licenses to general property and casualty insurance agent licenses and general life and health agent licenses, respectively. The bill also eliminates the registration requirements for home office salaried employees and the exemption for such employees from other state law regulating insurance professionals.