Texas House Bill HB1305

Texas 2013 - 83rd Regular

Caption

Relating to the criminal penalty for acting as an agent after suspension or revocation of the agent's license.

Impact

The impact of this bill could be significant in terms of its implications for individuals operating as insurance agents. By categorizing the offense as a third-degree felony, the bill underscores the seriousness with which Texas lawmakers view the adherence to licensing regulations. This amendment to the Texas Insurance Code emphasizes that violations will not only be met with fines, but could also result in imprisonment, thus stressing the importance of compliance for all licensed agents.

Summary

House Bill 1305 addresses the criminal penalties associated with acting as an insurance agent after the suspension or revocation of the agent's license. This legislative measure aims to strengthen the enforcement of licensing laws within the insurance industry by explicitly classifying the act of continuing to operate as an agent under such circumstances as a felony of the third degree. The increase in the penalty serves to deter individuals from disregarding licensing laws and helps to uphold the integrity of the insurance profession in Texas.

Contention

While the text and specifics of HB 1305 indicate a clear intent to curb wrongful practices in the insurance sector, potential points of contention may arise surrounding the severity of the penalties. Some stakeholders may argue that labeling the act as a felony could lead to overly harsh consequences for agents, particularly those who may inadvertently fail to renew their licenses. Additionally, discussions may emerge regarding the balance between protecting consumers and ensuring fair treatment for those working in the industry who may commit non-malicious infractions.