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A BILL TO BE ENTITLED
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AN ACT
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relating to certain education requirements for insurance agents who |
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sell annuities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 1115, Insurance Code, is |
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amended by adding Section 1115.056 to read as follows: |
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Sec. 1115.056. AGENT EDUCATION REQUIREMENTS. (a) An agent |
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that intends to sell, solicit, or negotiate a contract for an |
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annuity in this state or to represent an insurer in relation to such |
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an annuity must submit evidence satisfactory to the department of |
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completion of at least eight hours of training relating to |
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annuities in a program certified by the department under Subchapter |
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C, Chapter 4004, before soliciting individual consumers for the |
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purpose of selling annuities. |
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(b) The training required under Subsection (a) may be used |
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to satisfy the continuing education requirements established under |
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Subchapter B, Chapter 4004. |
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SECTION 2. Chapter 4004, Insurance Code, is amended by |
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adding Subchapter E to read as follows: |
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SUBCHAPTER E. CONTINUING EDUCATION REQUIREMENTS FOR SALE OF |
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ANNUITIES |
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Sec. 4004.201. DEFINITION. In this subchapter, "annuity" |
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has the meaning assigned by Section 1115.002. |
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Sec. 4004.202. REQUIRED CONTINUING EDUCATION REGARDING |
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ANNUITIES. (a) This section applies to an agent who: |
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(1) sells, solicits, or negotiates a contract for an |
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annuity in this state; or |
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(2) represents or purports to represent an insurer in |
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relation to such an annuity. |
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(b) Each agent described by Subsection (a) must complete |
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four hours of continuing education annually that specifically |
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relates to annuities. The annual period under this subsection |
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shall be based on the agent's license date or another date specified |
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by the commissioner by rule, and the continuing education |
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requirement under this subsection must be met within that annual |
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period, notwithstanding Section 4004.051(b). |
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(c) The continuing education required under Subsection (b) |
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may be used to satisfy the continuing education requirements |
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established under Subchapter B. |
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Sec. 4004.203. PROGRAM CERTIFICATION REQUIREMENTS. |
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(a) The commissioner by rule shall adopt criteria for continuing |
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education programs used to satisfy the requirements of Section |
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4004.202. Those criteria must include: |
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(1) topics related specifically to annuities; |
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(2) state laws and rules related to annuities, |
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including requirements adopted under Chapter 1115; |
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(3) prohibited sales practices regarding annuities; |
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(4) recognition of indicators that a prospective |
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insured may lack the short-term memory or judgment to knowingly |
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purchase an annuity; and |
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(5) fraudulent and unfair trade practices regarding |
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the sale of annuities. |
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(b) Subject matter determined by the commissioner to be |
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primarily intended to promote the sale or marketing of annuities |
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does not qualify as continuing education for purposes of this |
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subchapter. |
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(c) Subchapter C applies to continuing education programs |
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described by Subsection (a) and training under Section 1115.056. |
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SECTION 3. The commissioner of insurance shall adopt rules |
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as required by Section 4004.203, Insurance Code, as added by this |
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Act, not later than December 1, 2009. |
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SECTION 4. Subchapter E, Chapter 4004, Insurance Code, as |
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added by this Act, applies to continuing education requirements for |
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insurance agents for a license issued or renewed on or after January |
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1, 2010. |
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SECTION 5. This Act takes effect September 1, 2009. |
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