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AN ACT
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relating to insurance agent licenses issued to certain foreign |
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corporations and partnerships. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 4001.106(b), Insurance Code, is amended |
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to read as follows: |
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(b) The department shall issue a license to a corporation or |
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partnership if the department determines that: |
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(1) the corporation or partnership is: |
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(A) organized under the laws of this state or |
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another state; and |
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(B) [admitted to engage in business in this state
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by the secretary of state, if required; and
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[(C)] authorized by its articles of |
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incorporation or its partnership agreement to act as an agent; |
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(2) at least one officer of the corporation or one |
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active partner of the partnership and all other persons performing |
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any acts of an agent on behalf of the corporation or partnership in |
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this state are individually licensed by the department separately |
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from the corporation or partnership; |
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(3) the corporation or partnership will have the |
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ability to pay any amount up to $25,000 that it might become legally |
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obligated to pay under a claim made against it by a customer and |
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caused by a negligent act, error, or omission of the corporation or |
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partnership or a person for whose acts the corporation or |
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partnership is legally liable in the conduct of its business under |
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this code; |
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(4) if engaged in the business of insurance, the |
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corporation or partnership intends to be actively engaged in that |
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business as required under Section 4001.104(a); |
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(5) each location from which the corporation or |
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partnership will engage in business in this state under authority |
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of a license issued by the department is registered separately with |
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the department; |
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(6) the corporation or partnership has submitted the |
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application, appropriate fees, and any other information required |
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by the department; and |
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(7) an officer, director, member, manager, partner, or |
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other person who has the right or ability to control the corporation |
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or partnership has not: |
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(A) had a license suspended or revoked or been |
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the subject of any other disciplinary action by a financial or |
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insurance regulator of this state, another state, or the United |
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States; or |
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(B) committed an act for which a license may be |
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denied under Subchapter C, Chapter 4005. |
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SECTION 2. This Act applies only to a license application |
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filed on or after the effective date of this Act. A license |
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application filed before the effective date of this Act is governed |
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by the law in effect on the date the application was filed, and that |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2503 was passed by the House on April |
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7, 2011, by the following vote: Yeas 144, Nays 0, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2503 was passed by the Senate on May |
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12, 2011, by the following vote: Yeas 31, Nays 0 |
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. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |