81R4723 PB-F
By: Smithee H.B. No. 2651
A BILL TO BE ENTITLED
AN ACT
relating to certain education requirements for insurance agents who
sell annuities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 1115, Insurance Code, is
amended by adding Section 1115.056 to read as follows:
Sec. 1115.056. AGENT EDUCATION REQUIREMENTS. (a) An agent
that intends to sell, solicit, or negotiate a contract for an
annuity in this state or to represent an insurer in relation to such
an annuity must submit evidence satisfactory to the department of
completion of at least eight hours of training relating to
annuities before soliciting individual consumers for the purpose of
selling annuities.
(b) The requirement imposed under Subsection (a) is in
addition to any other education or training requirements imposed
under this code and rules adopted under this code for issuance of a
license under this code.
SECTION 2. Chapter 4004, Insurance Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E. ADDITIONAL CONTINUING EDUCATION REQUIREMENTS
FOR SALE OF ANNUITIES
Sec. 4004.201. DEFINITION. In this subchapter, "annuity"
has the meaning assigned by Section 1115.002.
Sec. 4004.202. REQUIRED CONTINUING EDUCATION REGARDING
ANNUITIES. (a) This section applies to an agent who:
(1) sells, solicits, or negotiates a contract for an
annuity in this state; or
(2) represents or purports to represent an insurer in
relation to such an annuity.
(b) In addition to complying with the continuing education
requirements established under Subchapter B, each agent described
by Subsection (a) must complete four hours of continuing education
annually that specifically relates to annuities.
Sec. 4004.203. PROGRAM CERTIFICATION REQUIREMENTS. (a)
The commissioner by rule shall adopt criteria for continuing
education programs used to satisfy the requirements of Section
4004.202. Those criteria must include:
(1) topics related specifically to annuities;
(2) state laws and rules related to annuities,
including requirements adopted under Chapter 1115;
(3) prohibited sales practices regarding annuities;
(4) recognition of indicators that a prospective
insured may lack the short-term memory or judgment to knowingly
purchase an annuity; and
(5) fraudulent and unfair trade practices regarding
the sale of annuities.
(b) Subject matter determined by the commissioner to be
primarily intended to promote the sale or marketing of annuities
does not qualify as continuing education for purposes of this
subchapter.
(c) Subchapter C applies to continuing education programs
described by Subsection (a). Any training program disapproved
under Subsection (b) shall be presumed invalid for certification
under Subchapter C unless the program is approved in writing by the
commissioner.
SECTION 3. Section 4004.053(a), Insurance Code, is amended
to read as follows:
(a) An individual who holds a general life, accident, and
health license, a life agent license, a life and health insurance
counselor license, a general property and casualty license, or a
personal lines property and casualty license must complete 15 hours
of continuing education annually. Except as provided by
Subchapter E, if [If] the individual holds more than one license for
which continuing education is otherwise required, the individual is
not required to complete more than 15 continuing education hours
annually.
SECTION 4. The commissioner of insurance shall adopt rules
as required by Section 4004.203, Insurance Code, as added by this
Act, not later than December 1, 2009.
SECTION 5. Subchapter E, Chapter 4004, Insurance Code, as
added by this Act, applies to continuing education requirements for
insurance agents for a license issued or renewed on or after January
1, 2010.
SECTION 6. This Act takes effect September 1, 2009.