BILL ANALYSIS

 

 

Senate Research Center	H.B. 1197
85R5011 LED-F	By: Paul (Creighton)
	Business & Commerce
	5/2/2017
	Engrossed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Temporary licenses are designed for people who are considering a career change to an insurance agent. Many of these individuals attempt to transition in their careers while still working in another full-time job to provide for themselves and their families. As many discover while changing careers, completing 40 hours of training in 14 days can be difficult while working a 40-hour work week. H.B. 1197 seeks to address this issue by extending the period for a temporary license applicant to complete the required training.

 

H.B. 1197 amends current law relating to the training period for a temporary insurance agent's license.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Section 4001.160(a), Insurance Code, to require an agent, insurer, or health maintenance organization that is considering appointing a certain agent to provide at least 40 hours of training to the applicant not later than the 30th, rather than 14th, day after the date certain materials are delivered or mailed to the Texas Department of Insurance (TDI).

 

SECTION 2. Provides that Section 4001.160(a), Insurance Code, as amended by this Act, applies only with respect to an applicant for a temporary license whose application is delivered or mailed to TDI on or after the effective date of this Act. Provides that with respect to an applicant whose application is delivered or mailed before that date, an agent, insurer, or health maintenance organization 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 3. Effective date: upon passage or September 1, 2017.