By: Ellis, et al. S.B. No. 965
(In the Senate - Filed February 19, 2009; March 9, 2009,
read first time and referred to Committee on State Affairs;
April 1, 2009, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; April 1, 2009,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 965 By: Ellis
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 in a program certified by the department under Subchapter
C, Chapter 4004, before soliciting individual consumers for the
purpose of selling annuities.
(b) The training required under Subsection (a) may be used
to satisfy the continuing education requirements established under
Subchapter B, Chapter 4004.
SECTION 2. Chapter 4004, Insurance Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E. 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) Each agent described by Subsection (a) must complete
four hours of continuing education annually that specifically
relates to annuities. The annual period under this subsection
shall be based on the agent's license date or another date specified
by the commissioner by rule, and the continuing education
requirement under this subsection must be met within that annual
period, notwithstanding Section 4004.051(b).
(c) The continuing education required under Subsection (b)
may be used to satisfy the continuing education requirements
established under Subchapter B.
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) and training under Section 1115.056.
SECTION 3. 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 4. 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 5. This Act takes effect September 1, 2009.
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