| 1 | 1 | | 81R9615 PB-F |
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| 2 | 2 | | By: Van de Putte S.B. No. 2011 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to review of certain license examinations for insurance |
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| 8 | 8 | | agents. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter A, Chapter 4002, Insurance Code, is |
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| 11 | 11 | | amended by adding Section 4002.008 to read as follows: |
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| 12 | 12 | | Sec. 4002.008. STANDARDS FOR EXAMINATION PASS RATES; ANNUAL |
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| 13 | 13 | | REPORT. (a) This section applies only to insurance agent license |
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| 14 | 14 | | examinations for limited and single lines licenses, including agent |
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| 15 | 15 | | licenses issued under: |
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| 16 | 16 | | (1) Subchapter C, Chapter 4051; and |
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| 17 | 17 | | (2) Subchapters C and G, Chapter 4054. |
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| 18 | 18 | | (b) The commissioner or, at the commissioner's discretion, |
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| 19 | 19 | | the testing service, shall review a license examination subject to |
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| 20 | 20 | | this section if, during any 12-month period beginning on September |
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| 21 | 21 | | 1 of a year that examination exhibits an overall pass rate of less |
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| 22 | 22 | | than 70 percent for first-time examinees. |
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| 23 | 23 | | (c) The department shall compile an annual report based on |
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| 24 | 24 | | the review required under Subsection (b). The report must be based |
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| 25 | 25 | | on demographic data. The report must indicate whether there was any |
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| 26 | 26 | | disparity in the pass rate based on race, gender, or national origin |
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| 27 | 27 | | and, if there was such a disparity, the causes of the disparity. |
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| 28 | 28 | | (d) A report that indicates a disparity under Subsection (c) |
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| 29 | 29 | | must describe what, if any, corrective action will be taken to |
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| 30 | 30 | | remedy the identified disparity. |
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| 31 | 31 | | (e) The commissioner by rule may establish procedures as |
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| 32 | 32 | | necessary to: |
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| 33 | 33 | | (1) collect demographic information necessary to |
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| 34 | 34 | | implement this section; and |
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| 35 | 35 | | (2) ensure that a review required under Subsection (b) |
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| 36 | 36 | | is conducted, and the resulting report is prepared, impartially. |
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| 37 | 37 | | (f) The commissioner shall deliver the report prepared |
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| 38 | 38 | | under Subsection (c) to the governor, the lieutenant governor, and |
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| 39 | 39 | | the speaker of the house of representatives not later than December |
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| 40 | 40 | | 1 of each year. |
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| 41 | 41 | | SECTION 2. (a) The first 12-month period for which a |
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| 42 | 42 | | license examination review may be required under Section |
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| 43 | 43 | | 4002.008(b), Insurance Code, as added by this Act, begins September |
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| 44 | 44 | | 1, 2009. |
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| 45 | 45 | | (b) The commissioner of insurance shall deliver the initial |
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| 46 | 46 | | report required under Section 4002.008, Insurance Code, as added by |
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| 47 | 47 | | this Act, not later than December 1, 2010. |
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| 48 | 48 | | SECTION 3. This Act takes effect immediately if it receives |
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| 49 | 49 | | a vote of two-thirds of all the members elected to each house, as |
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| 50 | 50 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 51 | 51 | | Act does not receive the vote necessary for immediate effect, this |
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| 52 | 52 | | Act takes effect September 1, 2009. |
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