Enrolled Bill Summary

            Senate Bill 414 amends the Insurance Code to simplify and reform the regulation of insurance agents by consolidating the types of licenses required for insurance agents to promote interstate uniformity in the licensing, examination, continuing education, and disciplinary requirements, and it enacts the Texas Life, Accident, and Health Agents License Act and the Texas Property and Casualty Agents License Act.

            Senate Bill 414 establishes examination requirements for an applicant to obtain an insurance agent license, provides for a license to be valid for two years, and extends from 90 days to one year the period in which an agent may renew an expired license without submitting to reexamination. The bill gives the Texas Department of Insurance exclusive jurisdiction for all matters related to continuing education for licensed agents, and, with some exceptions, it requires each individual who holds a license to complete a specified number of continuing education hours annually. The bill allows the commissioner of insurance to appoint an advisory council to provide information and assistance in the conduct of the continuing education program.

            Senate Bill 414 allows the department to issue a nonrenewable temporary agent's license, valid for 90 days, to an applicant who is being considered for appointment as an agent by another license holder, an insurer, or a health maintenance organization and who intends to apply for a license; the temporary license is valid only for certain limited purposes. The bill specifies instances in which the department is required to license a nonresident agent and modifies requirements.