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A BILL TO BE ENTITLED
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AN ACT
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relating to review of certain license examinations for insurance |
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agents. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 4002, Insurance Code, is |
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amended by adding Section 4002.008 to read as follows: |
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Sec. 4002.008. STANDARDS FOR EXAMINATION PASS RATES; ANNUAL |
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REPORT. (a) This section applies only to insurance agent license |
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examinations for limited and single lines licenses, including agent |
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licenses issued under: |
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(1) Subchapters C and I, Chapter 4051; and |
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(2) Subchapters C and G, Chapter 4054. |
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(b) The commissioner or, at the commissioner's discretion, |
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a vendor under contract with the department, shall review a license |
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examination subject to this section if, during any 12-month period |
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beginning on September 1 of a year, that examination exhibits an |
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overall pass rate of less than 70 percent for first-time examinees. |
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(c) The department shall collect demographic information, |
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including, race, gender, and national origin, from an individual |
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taking a license examination subject to this section. |
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(d) The department shall compile an annual report based on |
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the review required under Subsection (b). The report must indicate |
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whether there was any disparity in the pass rate based on |
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demographic information. |
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(e) The commissioner by rule may establish procedures as |
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necessary to: |
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(1) collect demographic information necessary to |
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implement this section; and |
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(2) ensure that a review required under Subsection (b) |
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is conducted and the resulting report is prepared. |
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(f) The commissioner shall deliver the report prepared |
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under Subsection (d) to the governor, the lieutenant governor, and |
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the speaker of the house of representatives not later than December |
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1 of each year. |
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SECTION 2. (a) The first 12-month period for which a |
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license examination review may be required under Section |
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4002.008(b), Insurance Code, as added by this Act, begins September |
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1, 2009. |
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(b) The commissioner of insurance shall deliver the initial |
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report required under Section 4002.008, Insurance Code, as added by |
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this Act, not later than December 1, 2010. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |