By Counts                                       H.B. No. 1356

      75R3965 SAW-F                           

                                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 license to act as a

1-18     funeral prearrangement life insurance agent for an authorized legal

1-19     reserve life insurance company to an applicant other than a

1-20     partnership or corporation after receiving certification from the

1-21     insurance company that the applicant has completed a course of

1-22     study and instruction offered by the insurance company and passed

1-23     without aid a written examination administered by the insurance

1-24     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 for applicants and the nature and manner

 2-6     of conducting the examination for applicants.

 2-7           (d)  The commissioner may investigate as necessary the manner

 2-8     and method of instruction and examination of each authorized legal

 2-9     reserve life insurance company.  The commissioner may at the

2-10     commissioner's discretion withdraw from an insurance company the

2-11     authority to offer instruction and administer an examination.

2-12           (e)  A funeral prearrangement life insurance agent licensed

2-13     under this section may not:

2-14                 (1)  act as an agent for an insurance company unless

2-15     the agent acts under the supervision of a person who holds a

2-16     license to act as a legal reserve life insurance agent for that

2-17     insurance company and who holds a permit from the Texas Department

2-18     of Banking to sell prepaid funeral benefits under Chapter 512, Acts

2-19     of the 54th Legislature, Regular Session, 1955 (Article 548b,

2-20     Vernon's Texas Civil Statutes);

2-21                 (2)  write any coverage or combination of coverages

2-22     with an ultimate guaranteed death benefit in excess of $25,000 on

2-23     any life; or

2-24                 (3)  act as an agent for more than one insurance

2-25     company.

2-26           (f)  The commissioner shall stamp "FUNERAL PREARRANGEMENT

2-27     LIFE INSURANCE AGENT LICENSE" on a license issued under this

 3-1     section.

 3-2           (g)  A license issued under this section to act as an agent

 3-3     for an insurance company expires when the license holder ceases to

 3-4     act as an agent for that insurance company.

 3-5           (h)  An applicant for or holder of a license issued under

 3-6     this section is subject to the requirements of this Act, other than

 3-7     the requirements of Section 5(a) of this Act.

 3-8           SECTION 2.  The importance of this legislation and the

 3-9     crowded condition of the calendars in both houses create an

3-10     emergency and an imperative public necessity that the

3-11     constitutional rule requiring bills to be read on three several

3-12     days in each house be suspended, and this rule is hereby suspended,

3-13     and that this Act take effect and be in force from and after its

3-14     passage, and it is so enacted.