By: Meyer, Fallon H.B. No. 1947

(Senate Sponsor - Taylor of Collin)

(In the Senate - Received from the House April 28, 2015; May 19, 2015, read first time and referred to Committee on Administration; May 24, 2015, reported adversely, with favorable Committee Substitute by the following vote: Yeas 4, Nays 0; May 24, 2015, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR H.B. No. 1947 By: Schwertner

COMMITTEE VOTE

YeaNayAbsentPNV

HancockX

UrestiX

CampbellX

EltifeX

HuffinesX

SchwertnerX

WestX

A BILL TO BE ENTITLED

AN ACT

relating to licenses for insurance agents and adjusters.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 4001.006(a) and (b), Insurance Code, are amended to read as follows:

(a) The department shall collect from each agent of an insurer writing insurance in this state under this code:

(1) a nonrefundable license application fee; and

(2) a nonrefundable appointment fee for each appointment of the agent by an insurer.

(b) The department shall deposit the fees described by Subsection (a), together with other license application fees, examination fees, and license renewal application fees, to the credit of the Texas Department of Insurance operating account.

SECTION 2. Section 4003.001, Insurance Code, is amended by amending Subsection (a) and adding Subsections (c) and (d) to read as follows:

(a) Unless a staggered renewal system is adopted under Section 4003.002, each [agent] license issued or renewed by the department under Chapter 981 or Subtitles A, B, or C and not suspended or revoked by the commissioner expires on:

(1) the second anniversary of the date the license is issued to or renewed by a person that is not an individual; or

(2) except as provided in Subsection (c):

(A) for a license issued or renewed in an even-numbered year, the individual license holder's birthday each even-numbered year; or

(B) for a license issued or renewed in an odd-numbered year, the individual license holder's birthday each odd-numbered year.

(c) If a person holds more than one license, all licenses issued to the person expire on the earliest expiration date of the licenses held. Thereafter, all licenses expire in accordance with Subsection (a).

(d) Notwithstanding Section 4003.002(b), the commissioner may not prorate the initial application fee for a license based on the expiration period of the license under Subsection (c).

SECTION 3. Section 4003.008(b), Insurance Code, is amended to read as follows:

(b) The person must pay to the department a fee equal to the license application fee.

SECTION 4. Subchapter B, Chapter 4004, Insurance Code, is amended by adding Section 4004.055 to read as follows:

Sec. 4004.055. CONSEQUENCES OF FAILURE TO COMPLETE CONTINUING EDUCATION REQUIREMENT. (a) The department may not renew a license issued under this title if the license holder fails to:

(1) complete an applicable continuing education requirement not later than the 90th day after the last day of the licensing period; or

(2) pay an applicable fine related to the failure to timely complete continuing education.

(b) The department may not issue a new license under this title to an individual who was previously licensed under this title if the individual fails to:

(1) provide evidence of completion of an applicable continuing education requirement for the expired, nonrenewed, canceled, or revoked license; or

(2) pay an applicable fine related to the failure to timely complete continuing education.

(c) Completion of continuing education after expiration of a license is not a defense in a disciplinary action under Section 4005.101, Section 4005.109, or another provision of this code against an individual who failed to complete continuing education as required by this chapter.

SECTION 5. Sections 4101.057(a), (b), and (d), Insurance Code, are amended to read as follows:

(a) Before issuing or renewing a license under this chapter, the department shall set and collect a nonrefundable license application fee in an amount not to exceed $50.

(b) An applicant for a renewal license must remit the fee required by Subsection (a) before the expiration of the [biennially after the issuance of the original] license being renewed. If the applicant's license has been expired for not more than 90 days, an applicant for a renewal license must remit, in addition to the fee assessed under Subsection (a), a fee equal to one-half of the original application [license] fee.

(d) Before issuing a duplicate license requested by an adjuster, the department shall set and collect a duplicate license application fee.

SECTION 6. Section 4101.061, Insurance Code, is amended to read as follows:

Sec. 4101.061. EXPIRATION; RENEWAL. Expiration and renewal of a license issued under this chapter are governed by Chapter 4003, Section 4004.055, rules adopted by the commissioner, and [or] any applicable provision of this code or another insurance law of this state.

SECTION 7. Section 4102.062, Insurance Code, is amended to read as follows:

Sec. 4102.062. EXPIRATION. A license issued under this chapter expires as provided by Chapter 4003 [on the second anniversary of the date of issuance] unless suspended or revoked by the commissioner.

SECTION 8. Section 4102.064, Insurance Code, is amended to read as follows:

Sec. 4102.064. RENEWAL OF UNEXPIRED LICENSE. (a) A license holder may renew a license that has not expired and has not been suspended or revoked by filing with the department a properly completed renewal application, in the form prescribed by the commissioner, that demonstrates continued compliance with the license requirements imposed under this chapter or adopted by rule by the commissioner. The completed renewal application must be accompanied by:

(1) a renewal application fee in the amount determined by the commissioner under Section 4102.066(b); and

(2) evidence of compliance with the continuing education requirements imposed under Section 4102.109.

(b) A license holder must submit the completed renewal application, evidence of compliance with the continuing education requirements, and the renewal application fee to the commissioner not later than the 30th day before the second anniversary date of the license.

(c) On the filing of a completed renewal application, renewal application fee, and, if applicable, evidence of compliance with the continuing education requirements, the original license continues in force until:

(1) the department issues the renewal license; [or]

(2) the license is not renewed under Section 4004.055; or

(3) the commissioner issues an order revoking the license.

SECTION 9. Sections 4102.065(a), (b), and (d), Insurance Code, are amended to read as follows:

(a) A person whose license has been expired for 90 days or less may renew the license by:

(1) submitting to the department:

(A) a completed renewal application in the form prescribed by the commissioner; and

(B) evidence of compliance with the continuing education requirements and eligibility for renewal under Section 4004.055; and

(2) paying to the department the required renewal application fee and an additional fee that is equal to one-half of the renewal application fee for the license.

(b) Except as provided by Section 4004.055, a [A] person whose license has been expired for more than 90 days but less than one year may not renew the license but is entitled to a new license without taking the applicable examination if the person submits to the department:

(1) a new application;

(2) evidence of compliance with the continuing education requirements;

(3) the license application fee; and

(4) an additional fee equal to one-half of the license application fee.

(d) The department may renew without reexamination an expired license of a person who was licensed in this state, moved to another state, and is currently licensed and has been in continual practice in the other state up to and including the date of the application. The person must pay to the department a fee that is equal to the license application fee.

SECTION 10. (a) The change in law made by this Act applies only to a license issued or renewed on or after January 1, 2016. A license issued or renewed before January 1, 2016, is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

(b) On January 1, 2016, each license held on that date under Chapter 981, Insurance Code, and Subtitles A, B, and C, Title 13, Insurance Code, expires as follows:

(1) each license issued to a person that is not an individual expires on the expiration date of the license with the longest remaining term held by that person on January 1, 2016;

(2) each license issued to an individual expires, or may be extended to expire, on the individual's next birthday after the expiration date of the license with the longest remaining term held by that person on January 1, 2016; and

(3) after a license expires as described by Subdivision (1) or (2) of this subsection, the license renews and expires as provided by Section 4003.001, Insurance Code, as amended by this Act.

(c) To the extent that the term of an existing license is extended under this section, the department may not charge an additional fee or require a renewal application before the renewal date established under this section.

(d) Except as provided by Subsection (e) of this section, the change in law made by this Act does not change the continuing education requirement for a license issued or renewed on or after the effective date of this Act. Except as otherwise provided by provisions of this Act, the continuing education requirement for a license issued or renewed before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

(e) A licensee may not be required to complete additional continuing education hours for a license during any period the license was extended under this section beyond its original expiration date.

(f) Section 4004.055, Insurance Code, as added by this Act, applies only to completion of continuing education requirements for a license issued or renewed on or after November 1, 2015. Completion of continuing education requirements for a license issued or renewed before November 1, 2015, is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 11. This Act takes effect September 1, 2015.

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