| 1 | 1 | | 83R15046 SCL-F |
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| 2 | 2 | | By: Carona S.B. No. 697 |
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| 3 | 3 | | (Eiland) |
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| 4 | 4 | | Substitute the following for S.B. No. 697: No. |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the qualifications of certain nonresident individuals |
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| 10 | 10 | | to hold a surplus lines agent license. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 981.203, Insurance Code, is amended by |
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| 13 | 13 | | adding Subsection (a-1) to read as follows: |
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| 14 | 14 | | (a-1) Notwithstanding Subsection (a)(1)(B), an individual |
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| 15 | 15 | | is not required to obtain a general property and casualty agent |
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| 16 | 16 | | license to hold a surplus lines agent license if: |
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| 17 | 17 | | (1) the home state of each insured is Texas; |
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| 18 | 18 | | (2) the individual is a nonresident of this state; |
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| 19 | 19 | | (3) the individual is licensed as a surplus lines |
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| 20 | 20 | | agent in the individual's state of residence; |
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| 21 | 21 | | (4) the individual is not required by the individual's |
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| 22 | 22 | | state of residence to hold a general property and casualty agent |
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| 23 | 23 | | license to become licensed as a surplus lines agent; |
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| 24 | 24 | | (5) the individual has provided information |
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| 25 | 25 | | acceptable to the commissioner that the individual's state of |
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| 26 | 26 | | residence does not require a general property and casualty agent |
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| 27 | 27 | | license for a surplus lines agent license; |
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| 28 | 28 | | (6) the individual's state of residence does not |
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| 29 | 29 | | require a surplus lines agent to search for the availability of |
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| 30 | 30 | | insurance in the individual's state of residence before the |
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| 31 | 31 | | insurance is placed through a surplus lines agent; |
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| 32 | 32 | | (7) the individual's state of residence allows a |
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| 33 | 33 | | licensed general property and casualty agent to search for the |
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| 34 | 34 | | availability of insurance in the individual's state of residence; |
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| 35 | 35 | | (8) the individual has a professional relationship |
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| 36 | 36 | | with, and each transaction is conducted through, a person who: |
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| 37 | 37 | | (A) is a licensed general property and casualty |
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| 38 | 38 | | agent in this state or in the state of each transaction; and |
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| 39 | 39 | | (B) searches for the availability of insurance in |
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| 40 | 40 | | this state before the insurance is placed through a surplus lines |
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| 41 | 41 | | agent; and |
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| 42 | 42 | | (9) each transaction complies with the laws of the |
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| 43 | 43 | | state in which it occurs. |
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| 44 | 44 | | SECTION 2. The change in law made by this Act applies to a |
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| 45 | 45 | | license application submitted on or after the effective date of |
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| 46 | 46 | | this Act. A license application submitted before the effective |
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| 47 | 47 | | date of this Act is governed by the law in effect immediately before |
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| 48 | 48 | | the effective date of this Act, and that law is continued in effect |
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| 49 | 49 | | for that purpose. |
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| 50 | 50 | | SECTION 3. This Act takes effect January 1, 2014. |
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