| 1 | 1 | | By: Averitt S.B. No. 2578 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to insurance agent licenses issued to certain foreign |
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| 7 | 7 | | corporations and partnerships. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subsection (b), Section 4001.106, Insurance |
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| 10 | 10 | | Code, is amended to read as follows: |
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| 11 | 11 | | (b) The department shall issue a license to a corporation or |
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| 12 | 12 | | partnership if the department determines that: |
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| 13 | 13 | | (1) the corporation or partnership is: |
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| 14 | 14 | | (A) organized under the laws of this state or |
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| 15 | 15 | | another state; and |
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| 16 | 16 | | (B) [admitted to engage in business in this state |
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| 17 | 17 | | by the secretary of state, if required; and |
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| 18 | 18 | | [(C)] authorized by its articles of |
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| 19 | 19 | | incorporation or its partnership agreement to act as an agent; |
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| 20 | 20 | | (2) at least one officer of the corporation or one |
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| 21 | 21 | | active partner of the partnership and all other persons performing |
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| 22 | 22 | | any acts of an agent on behalf of the corporation or partnership in |
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| 23 | 23 | | this state are individually licensed by the department separately |
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| 24 | 24 | | from the corporation or partnership; |
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| 25 | 25 | | (3) the corporation or partnership will have the |
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| 26 | 26 | | ability to pay any amount up to $25,000 that it might become legally |
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| 27 | 27 | | obligated to pay under a claim made against it by a customer and |
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| 28 | 28 | | caused by a negligent act, error, or omission of the corporation or |
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| 29 | 29 | | partnership or a person for whose acts the corporation or |
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| 30 | 30 | | partnership is legally liable in the conduct of its business under |
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| 31 | 31 | | this code; |
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| 32 | 32 | | (4) if engaged in the business of insurance, the |
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| 33 | 33 | | corporation or partnership intends to be actively engaged in that |
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| 34 | 34 | | business as required under Section 4001.104(a); |
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| 35 | 35 | | (5) each location from which the corporation or |
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| 36 | 36 | | partnership will engage in business in this state under authority |
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| 37 | 37 | | of a license issued by the department is registered separately with |
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| 38 | 38 | | the department; |
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| 39 | 39 | | (6) the corporation or partnership has submitted the |
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| 40 | 40 | | application, appropriate fees, and any other information required |
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| 41 | 41 | | by the department; and |
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| 42 | 42 | | (7) an officer, director, member, manager, partner, or |
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| 43 | 43 | | other person who has the right or ability to control the corporation |
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| 44 | 44 | | or partnership has not: |
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| 45 | 45 | | (A) had a license suspended or revoked or been |
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| 46 | 46 | | the subject of any other disciplinary action by a financial or |
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| 47 | 47 | | insurance regulator of this state, another state, or the United |
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| 48 | 48 | | States; or |
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| 49 | 49 | | (B) committed an act for which a license may be |
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| 50 | 50 | | denied under Subchapter C, Chapter 4005. |
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| 51 | 51 | | SECTION 2. This Act applies only to a license application |
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| 52 | 52 | | filed on or after the effective date of this Act. A license |
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| 53 | 53 | | application filed before the effective date of this Act is governed |
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| 54 | 54 | | by the law in effect on the date the application was filed, and that |
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| 55 | 55 | | law is continued in effect for that purpose. |
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| 56 | 56 | | SECTION 3. This Act takes effect September 1, 2009. |
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