1-1 AN ACT
1-2 relating to licensing of funeral prearrangement life insurance
1-3 agents.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 213, Acts of the 54th Legislature,
1-6 Regular Session, 1955 (Article 21.07-1, Vernon's Texas Insurance
1-7 Code), is amended by adding Section 5A to read as follows:
1-8 Sec. 5A. FUNERAL PREARRANGEMENT LIFE INSURANCE AGENT.
1-9 (a) In this section, "funeral prearrangement life insurance agent"
1-10 means a life insurance agent who, subject to the limitations of
1-11 this section, writes only life insurance policies and fixed annuity
1-12 contracts to secure the delivery of funeral services and
1-13 merchandise under prepaid funeral contracts regulated by the Texas
1-14 Department of Banking under Chapter 512, Acts of the 54th
1-15 Legislature, Regular Session, 1955 (Article 548b, Vernon's Texas
1-16 Civil Statutes).
1-17 (b) The commissioner shall issue a limited purpose license
1-18 to act as a funeral prearrangement life insurance agent for an
1-19 authorized legal reserve life insurance company to an applicant
1-20 other than a partnership or corporation after receiving
1-21 certification from the insurance company that the applicant has
1-22 completed a course of study and instruction offered by the
1-23 insurance company and passed without aid a written examination
1-24 administered by the insurance company.
2-1 (c) The commissioner shall authorize a legal reserve life
2-2 insurance company to administer a funeral prearrangement life
2-3 insurance agent examination after the commissioner approves for the
2-4 insurance company a complete outline and explanation of the course
2-5 of study and instruction on life insurance and fixed annuities for
2-6 applicants and the nature and manner of conducting the examination
2-7 for applicants. On or before September 1, 1997, the commissioner
2-8 shall promulgate a uniform examination for applicants fairly
2-9 addressing the information contained in the approved course of
2-10 study and instruction.
2-11 (d) The course of study and instruction shall be for five
2-12 (5) hours and shall include instruction on both the policies to be
2-13 sold and the law relating to funeral prearrangement.
2-14 (e) The commissioner may investigate as necessary the manner
2-15 and method of instruction and examination of each authorized legal
2-16 reserve life insurance company. The commissioner may at the
2-17 commissioner's discretion withdraw from an insurance company the
2-18 authority to offer instruction and administer an examination.
2-19 (f) A funeral prearrangement life insurance agent licensed
2-20 under this section may not:
2-21 (1) act as an agent for an insurance company unless
2-22 the agent acts under the supervision of a person or corporation who
2-23 holds a license to act as a legal reserve life insurance agent for
2-24 that insurance company and who holds or is an authorized
2-25 representative of the holder of a permit from the Texas Department
2-26 of Banking to sell prepaid funeral benefits under Chapter 512, Acts
2-27 of the 54th Legislature, Regular Session, 1955 (Article 548b,
3-1 Vernon's Texas Civil Statutes);
3-2 (2) write any coverage or combination of coverages
3-3 with an initial guaranteed death benefit in excess of $15,000 on
3-4 any life; or
3-5 (3) act as an agent for more than one insurance
3-6 company.
3-7 (g) The commissioner shall stamp "FUNERAL PREARRANGEMENT
3-8 LIFE INSURANCE AGENT LICENSE" on a license issued under this
3-9 section.
3-10 (h) A license issued under this section to act as an agent
3-11 for an insurance company expires when the license holder ceases to
3-12 act as an agent for that insurance company. Within fifteen (15)
3-13 days after the license holder ceases to act as an agent for an
3-14 insurance company, the insurance company shall send written
3-15 notification of the expiration of the license to the commissioner.
3-16 (i) An applicant for or holder of a license issued under
3-17 this section is not subject to the requirements of this article,
3-18 other than the requirements of Sections 5A and 12.
3-19 SECTION 2. The importance of this legislation and the
3-20 crowded condition of the calendars in both houses create an
3-21 emergency and an imperative public necessity that the
3-22 constitutional rule requiring bills to be read on three several
3-23 days in each house be suspended, and this rule is hereby suspended,
3-24 and that this Act take effect and be in force from and after its
3-25 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1356 was passed by the House on May
5, 1997, by the following vote: Yeas 142, Nays 1, 3 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1356 on May 24, 1997, by the following vote: Yeas 137, Nays 0,
1 present, not voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1356 was passed by the Senate, with
amendments, on May 21, 1997, by the following vote: Yeas 30, Nays
0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor