By:  Cain                                             S.B. No. 1650

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the licensing of insurance agents.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Section 20, Article 21.14, Insurance Code, is

 1-4     amended to read as follows:

 1-5           Sec. 20.  Life, health and accident insurance, inapplicable

 1-6     to; other exceptions.  No provisions of this article shall apply to

 1-7     the Life, Health and Accident Insurance business or the Life,

 1-8     Health and Accident Department of the companies engaged therein,

 1-9     nor shall it apply to any of the following, namely:

1-10           (a)  Any actual full-time home office salaried employee of

1-11     any insurance carrier licensed to do business in Texas.

1-12           (b)  Any actual attorney-in-fact and its actual traveling

1-13     salaried representative as to business transacted through such

1-14     attorney in fact or salaried representative of any reciprocal

1-15     exchange or interinsurance exchange admitted to do business in

1-16     Texas.

1-17           (c)  Any adjuster of losses, and/or inspector of risks, for

1-18     an insurance carrier licensed to do business in Texas.

1-19           (d)  Any General Agent or State Agent or Branch Manager

1-20     representing an admitted and licensed insurance company or carrier,

1-21     or insurance companies or carriers, in a supervisory capacity.

 2-1           (e)  The actual attorney in fact for any Lloyds.

 2-2           (f)  All incorporated or unincorporated mutual insurance

 2-3     companies, their agents and representatives, organized and/or

 2-4     operating under and by authority of Chapters 16 and 17 of this

 2-5     code.

 2-6           (g)  Nothing in this entire article shall ever be construed

 2-7     to apply to any member, agent, employee, or representative of any

 2-8     county or farm mutual insurance company as exempted under Chapters

 2-9     16 and 17 of this code.

2-10           (h)  Nothing in this article shall apply to the group motor

2-11     vehicle insurance business or the group motor vehicle department of

2-12     the companies engaged in that business.

2-13           (i)  Salaried employees not involved in solicitation or

2-14     negotiation of insurance in the office of the local recording agent

2-15     who devote their full time to clerical and administrative services

2-16     including the incidental taking of information from customers and

2-17     receipt of premiums in the office of the local recording agent, as

2-18     long as the employees do not receive any commission and their

2-19     compensation is not varied by the volume of premiums taken and

2-20     received.

2-21           SECTION 2.  This Act takes effect September 1, 1997.

2-22           SECTION 3.  The importance of this legislation and the

2-23     crowded condition of the calendars in both houses create an

2-24     emergency and an imperative public necessity that the

2-25     constitutional rule requiring bills to be read on three several

 3-1     days in each house be suspended, and this rule is hereby suspended.