|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to insurance agent qualifications to sell certain products |
|
or product lines. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 4001.101, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 4001.101. LICENSE OR CERTIFICATE OF AUTHORITY |
|
REQUIRED; DESIGNATED PRODUCT CERTIFICATE. (a) Unless the person |
|
holds a license or certificate of authority issued by the |
|
department and, if required by rules adopted under Chapter 4008, a |
|
certificate to sell a designated product or product line, a person |
|
may not: |
|
(1) solicit or receive an application for insurance in |
|
this state; or |
|
(2) aid in the transaction of the business of an |
|
insurer. |
|
(b) A person may not act as an agent of a health maintenance |
|
organization or other type of insurer authorized to engage in |
|
business in this state unless the person holds: |
|
(1) a license issued by the department as provided by |
|
this title; and |
|
(2) if required by rules adopted under Chapter 4008, a |
|
certificate to sell a designated product or product line. |
|
(c) An insurer described by Subsection (b) may not appoint a |
|
person to act as its agent unless the person holds: |
|
(1) a license under this title; and |
|
(2) if required by rules adopted under Chapter 4008, a |
|
certificate to sell a designated product or product line. |
|
(d) This subchapter does not permit an employee or agent of |
|
a corporation or partnership to perform an act of an agent under |
|
this title without obtaining: |
|
(1) a license; and |
|
(2) if required by rules adopted under Chapter 4008, a |
|
certificate to sell a designated product or product line. |
|
SECTION 2. Section 4004.053(a), Insurance Code, is amended |
|
to read as follows: |
|
(a) An individual who holds a general life, accident, and |
|
health license, a life agent license, a life and health insurance |
|
counselor license, a general property and casualty license, or a |
|
personal lines property and casualty license must complete 15 hours |
|
of continuing education annually. If the individual holds more |
|
than one license for which continuing education is otherwise |
|
required, the individual is not required to complete more than 15 |
|
continuing education hours annually. An individual who is required |
|
under rules adopted under Chapter 4008 to hold a certificate to sell |
|
a designated product or product line may use continuing education |
|
programs administered under Section 4004.151 to satisfy the annual |
|
continuing education requirements under this subsection. |
|
SECTION 3. Chapter 4004, Insurance Code, is amended by |
|
adding Subchapter D to read as follows: |
|
SUBCHAPTER D. AGENT EDUCATION PROGRAMS |
|
FOR COMPLEX PRODUCTS |
|
Sec. 4004.151. AGENT EDUCATION PROGRAMS. The department |
|
shall administer continuing education and precertification |
|
training programs required by rules adopted under Chapter 4008. |
|
Sec. 4004.152. PROGRAM ADMINISTRATION. (a) The department |
|
shall administer a program described by Section 4004.151 in a |
|
manner consistent with the administration of continuing education |
|
programs under Subchapter C. |
|
(b) The department may enter into agreements with |
|
independent contractors for programs described by Section 4004.151 |
|
in the manner prescribed by Section 4004.104 for continuing |
|
education programs. |
|
SECTION 4. Section 4005.102, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 4005.102. REMEDIES FOR VIOLATION OF INSURANCE LAWS OR |
|
COMMISSIONER RULES. In addition to any other remedy available |
|
under Chapter 82, for a violation of this code, another insurance |
|
law of this state, or a rule of the commissioner, the department |
|
may: |
|
(1) deny an application for: |
|
(A) an original license; or |
|
(B) a certificate issued under Chapter 4008; |
|
(2) suspend, revoke, or deny renewal of: |
|
(A) a license; or |
|
(B) a certificate issued under Chapter 4008; |
|
(3) place on probation a person whose license has been |
|
suspended; |
|
(4) assess an administrative penalty; [or] |
|
(5) reprimand a license holder; or |
|
(6) require a license holder to qualify, or re-qualify |
|
if the agent has already qualified, for a certificate to sell a |
|
product or product line designated by rule under Chapter 4008. |
|
SECTION 5. Subtitle A, Title 13, Insurance Code, is amended |
|
by adding Chapter 4008 to read as follows: |
|
CHAPTER 4008. AGENT CERTIFICATION AND EDUCATION PROGRAMS FOR |
|
COMPLEX INSURANCE PRODUCTS |
|
Sec. 4008.001. PURPOSE. Certain insurance products are so |
|
complex that the general agent licensing and continuing education |
|
requirements are insufficient to ensure the level of agent |
|
expertise necessary to safeguard consumer interests. Agents should |
|
be equipped with the necessary skills and knowledge to assist |
|
insureds appropriately in their purchases. Requiring agent |
|
training or demonstration of knowledge before an agent may sell |
|
particularly complex products mitigates the negative impact caused |
|
by agents selling complex products without the training and |
|
knowledge necessary to sell those products in a manner that is fair |
|
and beneficial to insureds. |
|
Sec. 4008.002. TRAINING AND EXAMINATION REQUIREMENTS |
|
AUTHORIZED. (a) The commissioner may adopt rules requiring an |
|
agent who holds a license issued under this code to be certified, |
|
through specific education, training, examination, and experience |
|
requirements as provided by this chapter, before an agent may sell a |
|
product or product line designated by the commissioner. |
|
(b) Education, training, examination, and experience |
|
requirements established by rule under this chapter may be used to |
|
satisfy any other agent education, training, examination, and |
|
experience requirements otherwise established under this code. |
|
Sec. 4008.003. RULES. (a) In adopting rules under this |
|
chapter, the commissioner shall: |
|
(1) designate the products or product lines that may |
|
not be sold without certification under this chapter; and |
|
(2) specify the reasons why it is necessary that the |
|
sale of a designated product or product line requires education, |
|
experience, or examination. |
|
(b) By rule, the commissioner may specify: |
|
(1) any precertification education or experience that |
|
must be completed before a designated product or product line may be |
|
sold by an agent; |
|
(2) whether an agent must complete a precertification |
|
examination concerning the designated product or product line the |
|
agent intends to sell; |
|
(3) whether an agent certified under this chapter must |
|
complete specific continuing education to maintain the |
|
certificate; and |
|
(4) whether, and if so, how frequently, an agent |
|
certified under this chapter must periodically retake the |
|
examination to maintain the certificate. |
|
Sec. 4008.004. APPLICATION OF CERTIFICATION REQUIREMENTS |
|
TO CERTAIN AGENTS. (a) The commissioner by rule shall establish |
|
whether the certification requirements established under this |
|
chapter for sale by an agent of a designated product or product line |
|
apply: |
|
(1) only to an agent who, as of the effective date of |
|
the certification requirement, does not hold the underlying agent |
|
license required to sell that product or product line; or |
|
(2) to each licensed agent who engages in the sale of |
|
that product or product line. |
|
(b) If the commissioner adopts rules requiring each agent |
|
described by Subsection (a)(2) to be certified under this chapter, |
|
the rules must specify the date by which the agent must comply with |
|
the certification requirements. |
|
Sec. 4008.005. ISSUANCE OF CERTIFICATE. The department |
|
shall issue a certificate under this chapter to an agent if the |
|
department determines that the agent: |
|
(1) has submitted a properly completed certification |
|
application to the department in a form acceptable to the |
|
department; |
|
(2) has completed, within the 12-month period |
|
preceding the date of the certification application, all |
|
requirements for the certification required by rules adopted under |
|
this chapter; and |
|
(3) has not committed an act for which a license or |
|
certification may be denied under Subchapter C, Chapter 4005. |
|
Sec. 4008.006. CERTIFICATE EXPIRATION. Unless the |
|
commissioner by rule specifies a different period, each certificate |
|
issued under this chapter expires on the expiration date of the |
|
agent's appropriate underlying license. |
|
Sec. 4008.007. CERTIFICATE RENEWAL. (a) An agent may renew |
|
an unexpired certificate before the expiration of the certificate |
|
by: |
|
(1) completing all renewal requirements established |
|
by rule under this chapter; and |
|
(2) filing a properly completed renewal application |
|
with the department in a form acceptable to the department. |
|
(b) A person may not renew a certificate that has been |
|
suspended or revoked. |
|
Sec. 4008.008. ADMINISTRATION BY TESTING SERVICE |
|
AUTHORIZED. The commissioner may accept an examination |
|
administered by a testing service, as provided under Subchapter B, |
|
Chapter 4002, to satisfy an examination requirement required by |
|
rule under this chapter. |
|
SECTION 6. This Act takes effect immediately if it receives |
|
a vote of two-thirds of all the members elected to each house, as |
|
provided by Section 39, Article III, Texas Constitution. If this |
|
Act does not receive the vote necessary for immediate effect, this |
|
Act takes effect September 1, 2009. |