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.