Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Lewis of Tarrant                             H.B. No. 3147

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the licensing of insurance agents.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 20, Article 21.14, Insurance Code, is

 1-5     amended to read as follows:

 1-6           Sec. 20.  Life, health and accident, inapplicable to; other

 1-7     exceptions.  No provisions of this article shall apply to the Life,

 1-8     Health and Accident Insurance business or the Life, Health and

 1-9     Accident Department of the companies engaged therein, nor shall it

1-10     apply to any of the following, namely:

1-11           (a)  Any actual full-time home office salaried employee of

1-12     any insurance carrier licensed to do business in Texas.

1-13           (b)  Any actual attorney in fact and its actual traveling

1-14     salaried representative as to business transacted through such

1-15     attorney in fact or salaried representative of any reciprocal

1-16     exchange or interinsurance exchange admitted to do business in

1-17     Texas.

1-18           (c)  Any adjuster of losses, and/or inspector of risks, for

1-19     an insurance carrier licensed to do business in Texas.

1-20           (d)  Any General Agent or State Agent or Branch Manager

1-21     representing an admitted and licensed insurance company or carrier,

1-22     or insurance companies or carriers, in a supervisory capacity.

1-23           (e)  The actual attorney in fact for any Lloyds.

1-24           (f)  All incorporated or unincorporated mutual insurance

 2-1     companies, their agents and representatives, organized and/or

 2-2     operating under and by authority of Chapters 16 and 17 of this

 2-3     code.

 2-4           (g)  Nothing in this entire article shall ever be construed

 2-5     to apply to any member, agent, employee, or representative of any

 2-6     county or farm mutual insurance company as exempted under Chapters

 2-7     16 and 17 of code.

 2-8           (h)  Nothing in this article shall apply to the group motor

 2-9     vehicle insurance business or the group motor vehicle department of

2-10     the companies engaged in that business.

2-11           (i)  Salaried employees not involved in solicitation or

2-12     negotiation of insurance in the office of a local recording agent

2-13     who devote their full time to clerical and administrative services

2-14     including the incidental taking of information from customers and

2-15     receipt of premiums in the office of the local recording agent, as

2-16     long as the employees do not receive any commissions and their

2-17     compensation is not varied by the volume of premiums taken and

2-18     received.

2-19           SECTION 2.  This Act takes effect September 1, 1997.

2-20           SECTION 3.  The importance of this legislation and the

2-21     crowded condition of the calendars in both houses create an

2-22     emergency and the imperative public necessity that the

2-23     constitutional rule requiring bills to be read on three several

2-24     days in each house be suspended, and this rule is hereby suspended.