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.