Texas House Bill HB2503

Texas 2011 - 82nd Regular

• Out of House Committee: 3/25/11
• Voted on by House: 4/8/11
• Out of Senate Committee: 5/3/11
• Report Pass: 3/22/11
• Voted on by Senate: 5/12/11
• Engrossed: 4/8/11
• Governor Action: 5/28/11
• Refer: 4/26/11
• Report Pass: 5/3/11
• Enrolled: 5/12/11
• Passed: 5/28/11

Caption

Relating to insurance agent licenses issued to certain foreign corporations and partnerships.

Impact

The bill directly impacts the regulatory framework governing insurance agents in Texas, particularly how foreign corporations and partnerships can engage in the insurance business. By establishing more stringent requirements for licensing, HB2503 aims to ensure that only qualified entities and individuals conduct insurance business, thereby protecting consumers and enhancing the professionalism of the insurance industry in the state.

Summary

House Bill 2503 relates to the licensing of insurance agents for certain foreign corporations and partnerships. The bill amends Section 4001.106(b) of the Insurance Code, outlining the requirements for such entities to obtain a license to operate as insurance agents in Texas. Key stipulations include that at least one officer or active partner must be individually licensed, and the entity must demonstrate financial capability to cover potential claims up to $25,000 from customers due to negligent acts.

Contention

Notable points of contention during discussions around the bill included concerns over whether the proposed licensing requirements might deter foreign entities from entering the Texas market. Proponents argue that these measures are necessary for maintaining high standards and ensuring accountability, while critics warn that excessive regulation could diminish competition and limit consumer choice in the insurance market. The bill's effective date has been set for September 1, 2011, which allows stakeholders time to adjust to the new requirements.