Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Turner of Coleman H.B. No. 2221
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to limitations upon the amount of life insurance risk that
1-3 may be written by certain agents of or assumed by a stipulated
1-4 premium insurance company.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Sec. 3. (b) of Art. 21.07, Insurance Code, is
1-7 amended to read as follows:
1-8 (b) Such applicant, if not a partnership or corporation,
1-9 shall not be authorized to write life insurance in excess of
1-10 [$7,500] $10,000 upon any one life unless: (i) applicant, if not a
1-11 partnership or corporation, shall have first passed a written
1-12 examination as provided for in this Article 21.07, as amended, or
1-13 (ii) applicant will act only as a ticket-selling agent of a public
1-14 carrier with respect to accident life insurance covering risks of
1-15 travel or as an agent selling credit life, health and accident
1-16 insurance issued exclusively in connection with credit
1-17 transactions, or (iii) applicant will write policies or riders to
1-18 policies providing only lump sum cash benefits in the event of the
1-19 accidental death, or death by accidental means, or dismemberment,
1-20 or providing only ambulance expense benefits in the event of
1-21 accident or sickness.
1-22 SECTION 2. Sec. 4A. (a) of Art. 21.07 Insurance Code, is
1-23 amended to read as follows:
2-1 Examination of Applicant for License to
2-2 Write Life Insurance Upon Any One
2-3 Life in excess of [$7,500] $10,000
2-4 (a) Each applicant for a license under the provisions of
2-5 this Article 21.07, Insurance Code, as amended, who desires to
2-6 write life insurance in excess of [$7,500] $10,000 upon any one
2-7 life, other than as expected in Section 3 of this Article 21.07,
2-8 within this state shall submit to a personal written examination
2-9 prescribed by the State Board of Insurance and administered in the
2-10 English or Spanish language to determine his competency with
2-11 respect to life insurance and his familiarity with the pertinent
2-12 provisions of the laws of the State of Texas relating to life
2-13 insurance and shall pass the same to the satisfaction of the State
2-14 Board of Insurance; except that no written examination shall be
2-15 required of an applicant that is a partnership or corporation.
2-16 SECTION 3. Sec. 4A (e) of Art. 21.07 Insurance Code, is
2-17 amended to read as follows:
2-18 (e) When any license shall be issued by the State Board of
2-19 Insurance to an applicant entitled to write life insurance upon any
2-20 one life in excess of [$7,500] $10,000, the license shall have
2-21 stamped thereon the words, "Life Insurance in Excess of [$7,500]
2-22 $10,000."
2-23 SECTION 4. Art. 21.07, Insurance Code, is hereby amended by
2-24 adding a new Sec. 15A reading as follows:
2-25 Sec. 15A. Any person or corporation that holds a license
2-26 under the provisions of Art. 21.07-1, Insurance Code, shall be
2-27 entitled to write life insurance under such license for stipulated
2-28 premium companies when appointed by a stipulated premium company
2-29 without having to obtain a license under this Article 21.07. Each
2-30 stipulated premium company is authorized to appoint as its agent,
3-1 any person or corporation that holds a license under the provisions
3-2 of Art. 21.07-1, Insurance Code.
3-3 SECTION 5. Sec. 1. (b) of Art. 22.13 Insurance Code, is
3-4 amended to read as follows:
3-5 (b) It shall be unlawful for any stipulated premium company
3-6 to assume liability on a life insurance risk on any one life in an
3-7 amount in excess of Ten Thousand Dollars ($10,000.00). Provided,
3-8 however, when a stipulated premium company assumes a life insurance
3-9 risk under a life insurance policy, the initial death benefit of
3-10 Ten Thousand Dollars ($10,000) or less may increase to an amount
3-11 greater than Ten Thousand Dollars ($10,000) through policy
3-12 dividends or contractual death benefit increases designed to keep
3-13 pace with inflation without being in violation of this subsection
3-14 or this Act.
3-15 SECTION 6. Art. 22.23(a)(1), Insurance Code, is amended to
3-16 read as follows:
3-17 (1) no individual Life shall be insured for more than
3-18 $10,000[;] except as provided in Sec. 1(b) of Art. 22.13, Insurance
3-19 Code;
3-20 SECTION 7. This Act takes effect September 1, 1997.
3-21 SECTION 8. The importance of this legislation and the
3-22 crowded condition of the calendars in both houses create an
3-23 emergency and an imperative public necessity that the
3-24 constitutional rule requiring bills to be read on three several
3-25 days in each house be suspended, and this rule is hereby suspended.