| 1 | 1 | | 81R4723 PB-F |
|---|
| 2 | 2 | | By: Smithee H.B. No. 2651 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to certain education requirements for insurance agents who |
|---|
| 8 | 8 | | sell annuities. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Subchapter B, Chapter 1115, Insurance Code, is |
|---|
| 11 | 11 | | amended by adding Section 1115.056 to read as follows: |
|---|
| 12 | 12 | | Sec. 1115.056. AGENT EDUCATION REQUIREMENTS. (a) An agent |
|---|
| 13 | 13 | | that intends to sell, solicit, or negotiate a contract for an |
|---|
| 14 | 14 | | annuity in this state or to represent an insurer in relation to such |
|---|
| 15 | 15 | | an annuity must submit evidence satisfactory to the department of |
|---|
| 16 | 16 | | completion of at least eight hours of training relating to |
|---|
| 17 | 17 | | annuities before soliciting individual consumers for the purpose of |
|---|
| 18 | 18 | | selling annuities. |
|---|
| 19 | 19 | | (b) The requirement imposed under Subsection (a) is in |
|---|
| 20 | 20 | | addition to any other education or training requirements imposed |
|---|
| 21 | 21 | | under this code and rules adopted under this code for issuance of a |
|---|
| 22 | 22 | | license under this code. |
|---|
| 23 | 23 | | SECTION 2. Chapter 4004, Insurance Code, is amended by |
|---|
| 24 | 24 | | adding Subchapter E to read as follows: |
|---|
| 25 | 25 | | SUBCHAPTER E. ADDITIONAL CONTINUING EDUCATION REQUIREMENTS |
|---|
| 26 | 26 | | FOR SALE OF ANNUITIES |
|---|
| 27 | 27 | | Sec. 4004.201. DEFINITION. In this subchapter, "annuity" |
|---|
| 28 | 28 | | has the meaning assigned by Section 1115.002. |
|---|
| 29 | 29 | | Sec. 4004.202. REQUIRED CONTINUING EDUCATION REGARDING |
|---|
| 30 | 30 | | ANNUITIES. (a) This section applies to an agent who: |
|---|
| 31 | 31 | | (1) sells, solicits, or negotiates a contract for an |
|---|
| 32 | 32 | | annuity in this state; or |
|---|
| 33 | 33 | | (2) represents or purports to represent an insurer in |
|---|
| 34 | 34 | | relation to such an annuity. |
|---|
| 35 | 35 | | (b) In addition to complying with the continuing education |
|---|
| 36 | 36 | | requirements established under Subchapter B, each agent described |
|---|
| 37 | 37 | | by Subsection (a) must complete four hours of continuing education |
|---|
| 38 | 38 | | annually that specifically relates to annuities. |
|---|
| 39 | 39 | | Sec. 4004.203. PROGRAM CERTIFICATION REQUIREMENTS. (a) |
|---|
| 40 | 40 | | The commissioner by rule shall adopt criteria for continuing |
|---|
| 41 | 41 | | education programs used to satisfy the requirements of Section |
|---|
| 42 | 42 | | 4004.202. Those criteria must include: |
|---|
| 43 | 43 | | (1) topics related specifically to annuities; |
|---|
| 44 | 44 | | (2) state laws and rules related to annuities, |
|---|
| 45 | 45 | | including requirements adopted under Chapter 1115; |
|---|
| 46 | 46 | | (3) prohibited sales practices regarding annuities; |
|---|
| 47 | 47 | | (4) recognition of indicators that a prospective |
|---|
| 48 | 48 | | insured may lack the short-term memory or judgment to knowingly |
|---|
| 49 | 49 | | purchase an annuity; and |
|---|
| 50 | 50 | | (5) fraudulent and unfair trade practices regarding |
|---|
| 51 | 51 | | the sale of annuities. |
|---|
| 52 | 52 | | (b) Subject matter determined by the commissioner to be |
|---|
| 53 | 53 | | primarily intended to promote the sale or marketing of annuities |
|---|
| 54 | 54 | | does not qualify as continuing education for purposes of this |
|---|
| 55 | 55 | | subchapter. |
|---|
| 56 | 56 | | (c) Subchapter C applies to continuing education programs |
|---|
| 57 | 57 | | described by Subsection (a). Any training program disapproved |
|---|
| 58 | 58 | | under Subsection (b) shall be presumed invalid for certification |
|---|
| 59 | 59 | | under Subchapter C unless the program is approved in writing by the |
|---|
| 60 | 60 | | commissioner. |
|---|
| 61 | 61 | | SECTION 3. Section 4004.053(a), Insurance Code, is amended |
|---|
| 62 | 62 | | to read as follows: |
|---|
| 63 | 63 | | (a) An individual who holds a general life, accident, and |
|---|
| 64 | 64 | | health license, a life agent license, a life and health insurance |
|---|
| 65 | 65 | | counselor license, a general property and casualty license, or a |
|---|
| 66 | 66 | | personal lines property and casualty license must complete 15 hours |
|---|
| 67 | 67 | | of continuing education annually. Except as provided by |
|---|
| 68 | 68 | | Subchapter E, if [If] the individual holds more than one license for |
|---|
| 69 | 69 | | which continuing education is otherwise required, the individual is |
|---|
| 70 | 70 | | not required to complete more than 15 continuing education hours |
|---|
| 71 | 71 | | annually. |
|---|
| 72 | 72 | | SECTION 4. The commissioner of insurance shall adopt rules |
|---|
| 73 | 73 | | as required by Section 4004.203, Insurance Code, as added by this |
|---|
| 74 | 74 | | Act, not later than December 1, 2009. |
|---|
| 75 | 75 | | SECTION 5. Subchapter E, Chapter 4004, Insurance Code, as |
|---|
| 76 | 76 | | added by this Act, applies to continuing education requirements for |
|---|
| 77 | 77 | | insurance agents for a license issued or renewed on or after January |
|---|
| 78 | 78 | | 1, 2010. |
|---|
| 79 | 79 | | SECTION 6. This Act takes effect September 1, 2009. |
|---|