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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of senior-specific certifications and |
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professional designations in the sale of life insurance and |
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annuities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The Insurance Code is amended by adding a new |
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Chapter 1117 to read as follows: |
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CHAPTER 1117. |
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SUBCHAPTER A. GENERAL PROVISIONS |
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1117.001. Purpose |
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The purpose of this chapter is to set forth standards to |
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protect consumers from misleading and fraudulent marketing |
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practices with respect to the use of senior-specific certifications |
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and professional designations in the solicitation, sale or purchase |
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of, or advice made in connection with, a life insurance or annuity |
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product. |
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1117.002. Scope |
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This chapter shall apply to any solicitation, sale or |
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purchase of, or advice made in connection with, a life insurance or |
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annuity product by an insurance agent. Nothing in this chapter |
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shall limit the commissioner's authority to enforce existing |
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provisions of the law. |
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1117.003. Definitions |
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In this chapter: |
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(1) "Insurance Agent" means a person required to be |
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licensed under the laws of this state to sell, solicit or negotiate |
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life insurance or annuities. |
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SUBCHAPTER B. USE OF SENIOR SPECIFIC CERTIFICATIONS AND |
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PROFESSIONAL DESIGNATIONS |
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1117.051. Prohibited Uses of Senior-Specific Certifications and |
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Professional Designations |
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(a) An insurance agent shall not use a senior-specific |
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certification or professional designation that indicates or |
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implies in such a way as to mislead a purchaser or prospective |
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purchaser that the insurance agent has special certification or |
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training in advising or servicing seniors in connection with the |
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solicitation, sale or purchase of a life insurance or annuity |
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product or in the provision of advice as to the value of or the |
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advisability of purchasing or selling a life insurance or annuity |
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product, either directly or indirectly through publications or |
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writings, or by issuing or promulgating analyses or reports related |
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to a life insurance or annuity product. |
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(b) The prohibited use of senior-specific certifications or |
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professional designations includes, but is not limited to, the |
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following: |
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(1) use of a certification or professional designation |
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by an insurance agent who has not actually earned or is otherwise |
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ineligible to use such certification or designation; |
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(2) use of a nonexistent or self-conferred |
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certification or professional designation; |
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(3) use of a certification or professional designation |
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that indicates or implies a level of occupational qualifications |
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obtained through education, training or experience that the |
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insurance agent using the certification or designation does not |
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have; and |
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(4) use of a certification or professional designation |
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that was obtained from a certifying or designating organization |
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that: |
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(A) is primarily engaged in the business of |
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instruction in sales or marketing; |
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(B) does not have reasonable standards or |
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procedures for assuring the competency of its certificants or |
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designees; |
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(C) does not have reasonable standards or |
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procedures for monitoring and disciplining its certificants or |
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designees for improper or unethical conduct; or |
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(D) does not have reasonable continuing |
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education requirements for its certificants or designees in order |
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to maintain the certificate or designation. |
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(b) There is a rebuttable presumption that a certifying or |
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designating organization is not disqualified solely for purposes of |
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Subsection (b)(4) when the certification or designation issued from |
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the organization does not primarily apply to sales or marketing and |
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when the organization or the certification or designation in |
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question has been accredited by: |
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(1) the American National Standards Institute (ANSI); |
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(2) the National Commission for Certifying Agencies; |
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or |
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(3) any organization that is on the U.S. Department of |
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Education's list entitled "Accrediting Agencies Recognized for |
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Title IV Purposes." |
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(c) In determining whether a combination of words or an |
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acronym standing for a combination of words constitutes a |
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certification or professional designation indicating or implying |
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that a person has special certification or training in advising or |
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servicing seniors, factors to be considered shall include: |
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(1) use of one or more words such as "senior," |
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"retirement," "elder," or like words combined with one or more |
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words such as "certified," "registered," "chartered," "advisor," |
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"specialist," "consultant," "planner," or like words, in the name |
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of the certification or professional designation; and |
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(2) the manner in which those words are combined. |
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(d) For purposes of this chapter, a job title within an |
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organization that is licensed or registered by a State or federal |
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financial services regulatory agency is not a certification or |
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professional designation, unless it is used in a manner that would |
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confuse or mislead a reasonable consumer, when the job title: |
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(1) indicates seniority or standing within the |
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organization; or |
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(2) specifies an individual's area of specialization |
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within the organization. |
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(e) For purposes of Subsection (d), financial services |
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regulatory agency includes, but is not limited to, an agency that |
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regulates insurers, insurance producers, broker-dealers, |
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investment advisers, or investment companies as defined under the |
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Investment Company Act of 1940. |
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SECTION 2. This legislation shall be become effective |
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January 1, 2010. |