Texas 2009 - 81st Regular

Texas House Bill HB1294 Compare Versions

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1	1	By: Eiland H.B. No. 1294
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the use of senior-specific certifications and
7	7	professional designations in the sale of life insurance and
8	8	annuities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The Insurance Code is amended by adding a new
11	11	Chapter 1117 to read as follows:
12	12	CHAPTER 1117.
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	1117.001. Purpose
15	15	The purpose of this chapter is to set forth standards to
16	16	protect consumers from misleading and fraudulent marketing
17	17	practices with respect to the use of senior-specific certifications
18	18	and professional designations in the solicitation, sale or purchase
19	19	of, or advice made in connection with, a life insurance or annuity
20	20	product.
21	21	1117.002. Scope
22	22	This chapter shall apply to any solicitation, sale or
23	23	purchase of, or advice made in connection with, a life insurance or
24	24	annuity product by an insurance agent. Nothing in this chapter
25	25	shall limit the commissioner's authority to enforce existing
26	26	provisions of the law.
27	27	1117.003. Definitions
28	28	In this chapter:
29	29	(1) "Insurance Agent" means a person required to be
30	30	licensed under the laws of this state to sell, solicit or negotiate
31	31	life insurance or annuities.
32	32	SUBCHAPTER B. USE OF SENIOR SPECIFIC CERTIFICATIONS AND
33	33	PROFESSIONAL DESIGNATIONS
34	34	1117.051. Prohibited Uses of Senior-Specific Certifications and
35	35	Professional Designations
36	36	(a) An insurance agent shall not use a senior-specific
37	37	certification or professional designation that indicates or
38	38	implies in such a way as to mislead a purchaser or prospective
39	39	purchaser that the insurance agent has special certification or
40	40	training in advising or servicing seniors in connection with the
41	41	solicitation, sale or purchase of a life insurance or annuity
42	42	product or in the provision of advice as to the value of or the
43	43	advisability of purchasing or selling a life insurance or annuity
44	44	product, either directly or indirectly through publications or
45	45	writings, or by issuing or promulgating analyses or reports related
46	46	to a life insurance or annuity product.
47	47	(b) The prohibited use of senior-specific certifications or
48	48	professional designations includes, but is not limited to, the
49	49	following:
50	50	(1) use of a certification or professional designation
51	51	by an insurance agent who has not actually earned or is otherwise
52	52	ineligible to use such certification or designation;
53	53	(2) use of a nonexistent or self-conferred
54	54	certification or professional designation;
55	55	(3) use of a certification or professional designation
56	56	that indicates or implies a level of occupational qualifications
57	57	obtained through education, training or experience that the
58	58	insurance agent using the certification or designation does not
59	59	have; and
60	60	(4) use of a certification or professional designation
61	61	that was obtained from a certifying or designating organization
62	62	that:
63	63	(A) is primarily engaged in the business of
64	64	instruction in sales or marketing;
65	65	(B) does not have reasonable standards or
66	66	procedures for assuring the competency of its certificants or
67	67	designees;
68	68	(C) does not have reasonable standards or
69	69	procedures for monitoring and disciplining its certificants or
70	70	designees for improper or unethical conduct; or
71	71	(D) does not have reasonable continuing
72	72	education requirements for its certificants or designees in order
73	73	to maintain the certificate or designation.
74	74	(b) There is a rebuttable presumption that a certifying or
75	75	designating organization is not disqualified solely for purposes of
76	76	Subsection (b)(4) when the certification or designation issued from
77	77	the organization does not primarily apply to sales or marketing and
78	78	when the organization or the certification or designation in
79	79	question has been accredited by:
80	80	(1) the American National Standards Institute (ANSI);
81	81	(2) the National Commission for Certifying Agencies;
82	82	or
83	83	(3) any organization that is on the U.S. Department of
84	84	Education's list entitled "Accrediting Agencies Recognized for
85	85	Title IV Purposes."
86	86	(c) In determining whether a combination of words or an
87	87	acronym standing for a combination of words constitutes a
88	88	certification or professional designation indicating or implying
89	89	that a person has special certification or training in advising or
90	90	servicing seniors, factors to be considered shall include:
91	91	(1) use of one or more words such as "senior,"
92	92	"retirement," "elder," or like words combined with one or more
93	93	words such as "certified," "registered," "chartered," "advisor,"
94	94	"specialist," "consultant," "planner," or like words, in the name
95	95	of the certification or professional designation; and
96	96	(2) the manner in which those words are combined.
97	97	(d) For purposes of this chapter, a job title within an
98	98	organization that is licensed or registered by a State or federal
99	99	financial services regulatory agency is not a certification or
100	100	professional designation, unless it is used in a manner that would
101	101	confuse or mislead a reasonable consumer, when the job title:
102	102	(1) indicates seniority or standing within the
103	103	organization; or
104	104	(2) specifies an individual's area of specialization
105	105	within the organization.
106	106	(e) For purposes of Subsection (d), financial services
107	107	regulatory agency includes, but is not limited to, an agency that
108	108	regulates insurers, insurance producers, broker-dealers,
109	109	investment advisers, or investment companies as defined under the
110	110	Investment Company Act of 1940.
111	111	SECTION 2. This legislation shall be become effective
112	112	January 1, 2010.