81R9615 PB-F
By: Thompson H.B. No. 1757
A BILL TO BE ENTITLED
AN ACT
relating to review of certain license examinations for insurance
agents.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 4002, Insurance Code, is
amended by adding Section 4002.008 to read as follows:
Sec. 4002.008. STANDARDS FOR EXAMINATION PASS RATES; ANNUAL
REPORT. (a) This section applies only to insurance agent license
examinations for limited and single lines licenses, including agent
licenses issued under:
(1) Subchapter C, Chapter 4051; and
(2) Subchapters C and G, Chapter 4054.
(b) The commissioner or, at the commissioner's discretion,
the testing service, shall review a license examination subject to
this section if, during any 12-month period beginning on September
1 of a year that examination exhibits an overall pass rate of less
than 70 percent for first-time examinees.
(c) The department shall compile an annual report based on
the review required under Subsection (b). The report must be based
on demographic data. The report must indicate whether there was any
disparity in the pass rate based on race, gender, or national origin
and, if there was such a disparity, the causes of the disparity.
(d) A report that indicates a disparity under Subsection (c)
must describe what, if any, corrective action will be taken to
remedy the identified disparity.
(e) The commissioner by rule may establish procedures as
necessary to:
(1) collect demographic information necessary to
implement this section; and
(2) ensure that a review required under Subsection (b)
is conducted, and the resulting report is prepared, impartially.
(f) The commissioner shall deliver the report prepared
under Subsection (c) to the governor, the lieutenant governor, and
the speaker of the house of representatives not later than December
1 of each year.
SECTION 2. (a) The first 12-month period for which a
license examination review may be required under Section
4002.008(b), Insurance Code, as added by this Act, begins September
1, 2009.
(b) The commissioner of insurance shall deliver the initial
report required under Section 4002.008, Insurance Code, as added by
this Act, not later than December 1, 2010.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.