By Counts H.B. No. 1356 Substitute the following for H.B. No. 1356: By Van de Putte C.S.H.B. No. 1356 A BILL TO BE ENTITLED 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. (a) 1-9 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.