Texas Senate Bill SB697

Texas 2013 - 83rd Regular

Caption

Relating to the qualifications of certain nonresident individuals to hold a surplus lines agent license.

Impact

The amendments introduced by SB697 are designed to streamline the licensing process for nonresident surplus lines agents. This could potentially enhance market accessibility for insurance products by allowing skilled agents from other states to operate in Texas without the full licensing burden traditionally required. This change is expected to facilitate better insurance representation and options for Texas consumers, particularly in surplus lines where standard coverage may not be available.

Summary

SB697 relates to the qualifications required for certain nonresident individuals seeking a surplus lines agent license. The bill amends the Texas Insurance Code, specifically addressing the criteria by which these individuals can be licensed without first obtaining a general property and casualty agent license. Under the revised stipulations, a nonresident can bypass the general licensing requirement provided that their operations are compliant with the laws of their home state and that they maintain a professional relationship with a licensed agent within Texas or the state of each transaction.

Contention

While the bill aims to promote efficiency in licensing, there may be concerns regarding consumer protections and regulatory oversight. By easing requirements for nonresident agents, there are potential risks associated with ensuring that these agents are adequately vetted and that they comply with Texas laws. Critics may argue that reduced requirements could lead to challenges in enforcing standards or accountability, particularly in a market as complex as insurance where regulatory frameworks exist to protect consumers.