Amend CSHB 3391 as follows:
(1) On page 48, strike lines 26 and 27.
(2) On page 49, strike lines 1-4 and substitute the
following:
SECTION 23. Article 21.11, Insurance Code, is amended to
read as follows:
Art. 21.11. NONRESIDENT <COMMISSIONS TO NON-RESIDENTS;
CANCELLATION OF NON-RESIDENT AGENT'S LICENSE; NON-RESIDENT AGENT
NOT TO ACT AS SURPLUS LINES> AGENT
Sec. 1. NONRESIDENT AGENT LICENSE. (a) Notwithstanding
Sections 3(a) and (b), Article 21.14, of this code, the department
shall license a person who is not a resident of this state to act
as a nonresident agent in accordance with Article 21.14 of this
code, subject to the limitations of this article.
(b) An applicant for issuance of a license under this
section must meet the requirements for issuance of a license under
Article 21.14 of this code, except that the department shall waive
any of those license requirements for an applicant with a valid
license from another state or jurisdiction that has license
requirements substantially equivalent to those of this state.
Sec. 2. RIGHTS OF LICENSE HOLDER. (a) Except as provided
by this section, a license issued under this article to an
individual who is not a resident of this state grants the same
rights and privileges afforded under a license issued under Article
21.14 of this code.
(b) A person who holds a license issued under this article
may not:
(1) maintain an office in this state;
(2) solicit insurance business in this state by any
method, including an oral, written, or electronic communication; or
(3) employ solicitors or others to directly or
indirectly solicit insurance in this state.
(c) The commissioner shall impose on a resident of another
state or jurisdiction of the United States who is an applicant for
a license or a holder of a license issued under this article any
requirement or restriction that:
(1) the other state or jurisdiction of the United
States imposes on a resident of this state who is a nonresident
applicant or license holder in that state or jurisdiction; and
(2) is in addition to or stricter than the
requirements or restrictions imposed under the insurance law of
this state on an applicant or license holder who is not a resident
of this state.
(d) For purposes of Subsection (c) of this section,
"requirement or restriction" includes a requirement or restriction
imposed by a law or regulation that:
(1) limits the rights or privileges of a person;
(2) affects a commission or other compensation paid to
a person; or
(3) imposes a condition precedent on a person.
Sec. 3. LIMITATIONS. (a) This article does not permit:
(1) <Any person, agent, firm, or corporation licensed
by the Board to act as a fire and marine, marine, tornado, rent,
accident, casualty, liability, health, elevator, disability, plate
glass, burglary, bonding, title, surety or fidelity insurance agent
in the State of Texas, is hereby prohibited from paying, directly
or indirectly, any commission, brokerage or other valuable
consideration on account of any policy or policies covering
property, person or persons in this State, to any person, persons,
agent, firm or corporation that is a non-resident of this State, or
to any person or persons, agent, firm or corporation not duly
licensed by the Board as a fire, fire and marine, marine, tornado,
rent, accident, casualty, liability, health, elevator, disability,
plate glass, burglary, bonding, title, surety or fidelity insurance
agent; excepting however, that on any policy of insurance
originated by a Licensed Non-Resident Insurance Agent, as
hereinafter defined, and covering property or persons in this
State, a Texas local Recording Agent may divide the commission with
the originating Licensed Non-Resident Insurance Agent, but in any
such case the insurance company or carrier shall pay to the Texas
Local Recording Agent through which such policy is issued, signed
or countersigned, his minimum share, which shall be a sum not less
than the amount of commission or brokerage required to be paid by
the laws or regulations of the State of such originating
Non-Resident Agent when a similar policy of insurance is originated
by a Texas Local Recording Agent covering persons or property in
such other State.>
<Nothing herein shall prevent a Texas Local Recording Agent
from dividing with, or paying commissions to, another Texas Local
Recording Agent. Nothing herein shall relieve any insurance
company or carrier covered thereby from writing Texas risks through
Texas agents as provided in Article 21.09, Insurance Code.>
<A Licensed Non-Resident Insurance Agent is any person, firm
or corporation residing or domiciled in another State and having a
Non-Resident Insurance Agent's license as is hereinafter
authorized.>
<Upon application, in such form as the Board of Insurance
Commissioners may require, a non-resident of this State who is duly
licensed to transact insurance other than life under the laws of
the State wherein such applicant resides, if such State does not
prohibit residents of this State from acting as insurance agent
therein, the Board of Insurance Commissioners may issue to such
applicant a Non-Resident Agent's license.>
<The issuance of a Non-Resident Agent's license shall be for
the purpose of permitting a Local Recording Agent of Texas to
divide commission with an agent of another State on insurance
covering property or persons in this State placed with or through a
Local Recording Agent, and to permit an agent of another State, who
qualifies and is licensed as a Non-Resident Agent, to inspect and
service such risks in Texas, which license shall be subject to the
same fees, qualifications, requirements and restrictions as apply
to Local Recording Agents of this State, except that an office
shall not be maintained in this State by a Non-Resident Agent and
all such insurance transacted shall be through licensed Local
Recording Agents as provided in Article 21.09 of the Texas
Insurance Code; and provided further that a Non-Resident Agent
shall transact all matters with the Board of Insurance
Commissioners relating to rates and rate engineering and
terminology of standard policy forms through Local Recording
Agents, and nothing contained herein shall be construed as granting
authority to a Non-Resident Agent to transact such matters directly
with the Board of Insurance Commissioners; and, except that the
Board of Insurance Commissioners, at its discretion, on payment by
applicant of the examination fee, may enter into a reciprocal
arrangement with the officer having jurisdiction of insurance
business in any other State to accept in lieu of the written
examination of such an applicant residing therein, a certificate of
such officer to the effect that the applicant is licensed as an
insurance agent in such State and has complied with its
qualification standards in respect to the following:>
<(a) Experience or training;>
<(b) Reasonable familiarity with the broad principles
of insurance, licensing and regulatory laws, and with provisions,
terms, and conditions of the insurance which applicant proposes to
transact; and>
<(c) A fair and general understanding of the
obligations and duties of an insurance agent.>
<Nothing contained herein shall be construed to permit> any
person or firm <who is> licensed solely as a broker in the person's
or firm's state <State> of <his> residence to be granted a
<Non-Resident> license under this article <as referred to herein>;
(2) <provided further that nothing contained herein
shall be construed to permit> a holder of a <Non-Resident Agent's>
license issued under this article to act as a surplus lines agent
<Surplus Lines Agent> under <the provisions of> Article 1.14-2 of
this code <the Insurance Code> or to perform any of the acts
permitted under Article 1.14-2 of this code, except as provided
under Section 10, Article 21.54, of this code; <thereunder> or
(3) <to permit> any person or firm who holds a
<Non-Resident Agent's> license issued under this article <as
authorized herein> to engage in any form of direct solicitation of
insurance within this state <State>.
(b) The commissioner shall revoke a nonresident agent's <A
Non-Resident Agent's> license issued under this article if the
commissioner finds <shall be cancelled and not be subject to
reissuance when it is found by the Board of Insurance
Commissioners> that the <such> license was obtained or is being
used for the purpose of transacting insurance through a local
recording agent <Local Recording Agent> in <such> a manner that
permits the individual licensed under this article <as to permit a
Non-Resident Agent>, by subterfuge, to transact insurance as a
local recording agent.
(c) In the circumstances described by Subsection (b) of this
section, the commissioner shall also revoke <Local Recording Agent,
and in which event> the license of the affected local recording
agent.
(d) A license revoked under Subsection (b) or (c) of this
section is <Local Recording Agent likewise shall be cancelled and>
not <be> subject to reissuance before the fifth anniversary of the
date the revocation is effective.
(e) The commissioner shall order that any <and all>
insurance transacted under an <such> arrangement described by
Subsection (b) of this section <shall> be cancelled<, provided
further that the provisions of Sections 16 and 17, Article 21.14 of
the Insurance Code shall apply to such cancellation>.
(f) Article 21.01-2 of this code applies to licensing of a
nonresident agent under this article.
Sec. 4. HOME OFFICE EMPLOYEE. This article does not affect
the authority established under Section 20, Article 21.14, of this
code of an actual full-time home office salaried employee of an
insurance carrier licensed to do business in this state.
Sec. 5. RULES. The commissioner may adopt rules to
implement this article.
SECTION 24. Article 21.09, Insurance Code, is repealed.
SECTION 25. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 1997.
(b) Sections 23 and 24 of this Act take effect July 1, 1997.
SECTION 26. The importance of this legislation and the
crowded condition of the calendars in both houses create an
emergency and an imperative public necessity that the
constitutional rule requiring bills to be read on three several
days in each house be suspended, and this rule is hereby suspended,
and that this Act take effect and be in force according to its
terms, and it is so enacted.