77R10712 PB-F
By Eiland H.B. No. 2100
Substitute the following for H.B. No. 2100:
By Eiland C.S.H.B. No. 2100
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a specialty insurance agent license for certain persons
1-3 who sell contracts regulated by the Texas Department of Banking for
1-4 prepaid funeral benefits.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 1(a), Article 21.09, Insurance Code, is
1-7 amended to read as follows:
1-8 (a) The commissioner may issue a specialty license to an
1-9 applicant who has complied with the requirements of this article.
1-10 A specialty license authorizes the license holder to act as an
1-11 agent for the types of insurance specified in this article for any
1-12 insurer authorized to write these types of insurance in this state.
1-13 A person who holds a license under this article is known as a
1-14 "specialty license holder." The commissioner may adopt rules
1-15 necessary to implement this article and to meet the minimum
1-16 requirements of federal law and regulations.
1-17 SECTION 2. Article 21.09, Insurance Code, is amended by
1-18 adding Section 8 to read as follows:
1-19 Sec. 8. PREPAID FUNERAL BENEFITS CONTRACT SELLER LICENSE.
1-20 (a) In this section:
1-21 (1) "Insurance-funded prepaid funeral benefits
1-22 contract" means a prepaid funeral benefits contract that is funded
1-23 by a life insurance policy or annuity approved by the department
1-24 for the specific purpose of funding prepaid funeral benefits
2-1 contracts.
2-2 (2) "Prepaid funeral benefits" has the meaning
2-3 assigned by Section 154.002, Finance Code.
2-4 (3) "Prepaid funeral benefits contract seller" means
2-5 an individual, firm, partnership, corporation, or association who
2-6 has authority under Chapter 154, Finance Code, to sell contracts
2-7 for prepaid funeral benefits.
2-8 (b) Notwithstanding any other provision of this article or
2-9 this code, the commissioner shall issue a specialty license under
2-10 Section 1 of this article to a prepaid funeral benefits contract
2-11 seller who complies with this section only for the limited purposes
2-12 set forth in this section.
2-13 (c) A prepaid funeral benefits contract seller licensed
2-14 under Section 1 of this article may act as an agent for any
2-15 authorized insurer only in connection with the sale of policies
2-16 issued to fund an insurance-funded prepaid funeral benefits
2-17 contract that has been approved by the Texas Department of Banking.
2-18 (d) A prepaid funeral benefits contract seller who is not an
2-19 employee of a funeral home or a corporate seller authorized to sell
2-20 prepaid funeral benefits contracts must be individually licensed
2-21 and appointed under this article by an insurance company as a
2-22 specialty license holder under this section.
2-23 (e) An individual specialty license holder under this
2-24 section and any employee of the specialty license holder must
2-25 complete the training required under Section 1(d) of this article
2-26 before selling an insurance funded prepaid funeral benefits
2-27 contract. The training program approved by the commissioner must
3-1 require the appointing insurance company to update its licensing
3-2 program as necessary to educate its specialty license holders about
3-3 any new products used by the insurance company to fund prepaid
3-4 funeral benefits contracts before a new product is issued. The
3-5 training program must include at least three hours of ethics
3-6 instruction related to the sale of prepaid funeral benefits
3-7 contracts.
3-8 (f) Insurance may not be issued under this section unless
3-9 the brochures or other written materials containing the disclosures
3-10 required by Section 1(g) of this article are provided to the
3-11 prospective purchaser of the insurance coverage.
3-12 SECTION 3. Section 6, Article 21.09, Insurance Code, is
3-13 repealed.
3-14 SECTION 4. This Act takes effect September 1, 2001.