Texas House Bill HB1757

Texas 2009 - 81st Regular

• Out of House Committee: 4/3/09
• Voted on by House: 4/16/09
• Out of Senate Committee: 5/18/09
• Voted on by Senate: 5/26/09
• Governor Action: 6/19/09
• Enrolled: 5/29/09
• Passed: 6/19/09

Caption

Relating to review of certain license examinations for insurance agents.

Impact

One of the key components of the bill is the requirement for an annual report, which must compile demographic data related to pass rates. The report is designed to identify if there are any disparities based on race, gender, or national origin in the examination outcomes. If such disparities are revealed, the report must also outline potential corrective actions aimed at addressing these inequalities. This provision is significant as it seeks to promote equal access and fairness in the licensing process for insurance agents.

Summary

House Bill 1757 aims to amend the Texas Insurance Code by introducing standards for the review of license examinations specifically for limited and single line insurance agents. The bill mandates that if an examination results in an overall pass rate of less than 70 percent within a 12-month period for first-time examinees, the commissioner or a designated testing service will conduct a review of that examination. This review is intended to identify any underlying issues or discrepancies in the examination process that may contribute to low pass rates.

Contention

While supporters of HB1757 may argue that the bill will enhance fairness and oversight in the insurance licensing process, critics could raise concerns about the potential administrative burden it places on the Department of Insurance and testing services. They may also question the effectiveness of the proposed measures in genuinely addressing the disparities identified in the reports. Overall, the discussion surrounding this bill highlights the ongoing effort to balance regulatory oversight with the need for increased equity in the insurance industry.