Texas House Bill HB2456

Texas 2009 - 81st Regular

• Out of House Committee: 4/28/09
• Voted on by House: 5/12/09
• Out of Senate Committee: 5/22/09
• Voted on by Senate: 5/27/09
• Governor Action: 6/19/09
• Enrolled: 5/29/09
• Passed: 6/19/09

Caption

Relating to insurance agent qualifications to sell certain products or product lines.

Impact

The primary impact of HB 2456 is aimed at enhancing consumer protection by ensuring that agents are adequately trained to handle complex insurance products. By mandating additional continuing education requirements for agents—and, in some cases, precertification training—the bill intends to mitigate the risks associated with unqualified individuals selling intricate insurance products. The new educational requirements aim to provide agents with a deeper understanding of the products they offer, thus safeguarding consumers from potential misrepresentation and resulting financial losses.

Summary

House Bill 2456 seeks to amend the Texas Insurance Code by introducing new qualification requirements for insurance agents, particularly regarding the sale of complex insurance products. The bill stipulates that agents must hold specific licenses or certificates of authority issued by the state department to solicit applications for insurance or act as agents for insurers. This includes a requirement for agents selling designated product lines to complete supplementary education and training programs to ensure they possess the necessary knowledge and expertise.

Contention

Despite its intended benefits, there are significant points of contention surrounding the bill. Some stakeholders argue that the additional certification requirements may create barriers to entry for new agents and could exacerbate the existing shortage of qualified insurance professionals. Critics are concerned that the financial burden of ongoing education and certification may deter prospective candidates from entering the insurance field. Additionally, there is apprehension regarding whether the regulatory measures imposed will truly enhance consumer protection or merely serve as an administrative hurdle that complicates the hiring and training of new agents.