BILL ANALYSIS

Insurance Committee

By: Shields
03-29-95
Committee Report (Substituted)

BACKGROUND

     Currently, life insurance agents who represent themselves as
a counselor, advisor, or other similar title are required to obtain
a "Life Insurance Counselor's license after successful completion
of examination as required by the Texas Department of Insurance. 
Agents may market life insurance and receive commissions in the
course of routine life insurance sales, however they must have a
Life Insurance  Counselor's License if they desire to do business
as "insurance counselor", "insurance specialist", or "insurance
advisor".   A licensed agent is permitted to give advice, counsel
or recommended information about insurance products and receive a
fee for that service, however, an agent may not receive both a fee
and a commission.

     Any person who acts as a life insurance counselor under the
provisions of Art. 21.07-2 is subject to misdemeanor penalties of
a fine of a fine of not more than $500, or imprisoned not more than
six months, or both.

PURPOSE

     As proposed, House Bill 2794 would change the current penalty
under Section 7, Chapter 29, Acts of the 54th Legislature, Regular
Session, 1955 (Article 21.07-2, V.T.I.C.) 
to conform with the Texas Penal Code.

RULEMAKING AUTHORITY

     It is the committee's opinion that this bill does not
expressly grant any additional rulemaking authority to a state
officer, department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.

Amends Section 7, Chapter 29, Acts of the 54th Legislature, Regular
Session, 1955 (Article 21.07-2, V.T.I.C.) by changing the current
penalty to a Class C misdemeanor.

SECTION 2.

(a)  This Act applies only to the punishment for an offense
committed on or after the effective     date of the Act.

(b)  An offense committed before the effective date of this Act is
covered by the law in effect  when the offense was committed.

SECTION 3. Effective Date.

SECTION 4. Emergency Clause

COMPARISON OF ORIGINAL TO SUBSTITUTE

     The substitute to H.B. 2794 strikes existing language under
Article 21.07-2, Insurance Code relating to the conviction under
this Act and the penalty of a fine not more than $500 or
imprisonment of not more than 6 months. The substitute also
provides punishment transition language.


SUMMARY OF COMMITTEE ACTION

     In accordance with House Rules, H.B. 2794 was heard in a
public hearing on March 29, 1995.  The Chair laid out H.B. 2794 and
recognized Representative Shields who offered a substitute to H.B.
2794 and moved the Committee to adopt the substitute.  The Chair
heard no objections and the substitute to H.B. 2794 was adopted.

     The Chair recognized the following person to testify in
support of H.B. 2794:  E. Kenneth Tooley, Texas Association of Life
Underwriters.  No one testified in opposition to or neutrally on
H.B. 2794.

     The Chair recognized Representative Driver who moved the
Committee report H.B. 2794 as substituted to the full House with
the recommendation that it do pass and be printed.  Representative
Averitt seconded the motion and the motion prevailed by the
following vote:
AYES (7); NAYES (0); ABSENT (2); PNV (0).