By: Meyer, Fallon H.B. No. 1947
(Senate Sponsor - Taylor of Collin)
(In the Senate - Received from the House April 28, 2015;
May 19, 2015, read first time and referred to Committee on
Administration; May 24, 2015, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 4, Nays 0;
May 24, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 1947 By: Schwertner
COMMITTEE VOTE
YeaNayAbsentPNV
HancockX
UrestiX
CampbellX
EltifeX
HuffinesX
SchwertnerX
WestX
A BILL TO BE ENTITLED
AN ACT
relating to licenses for insurance agents and adjusters.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 4001.006(a) and (b), Insurance Code,
are amended to read as follows:
(a) The department shall collect from each agent of an
insurer writing insurance in this state under this code:
(1) a nonrefundable license application fee; and
(2) a nonrefundable appointment fee for each
appointment of the agent by an insurer.
(b) The department shall deposit the fees described by
Subsection (a), together with other license application fees,
examination fees, and license renewal application fees, to the
credit of the Texas Department of Insurance operating account.
SECTION 2. Section 4003.001, Insurance Code, is amended by
amending Subsection (a) and adding Subsections (c) and (d) to read
as follows:
(a) Unless a staggered renewal system is adopted under
Section 4003.002, each [agent] license issued or renewed by the
department under Chapter 981 or Subtitles A, B, or C and not
suspended or revoked by the commissioner expires on:
(1) the second anniversary of the date the license is
issued to or renewed by a person that is not an individual; or
(2) except as provided in Subsection (c):
(A) for a license issued or renewed in an
even-numbered year, the individual license holder's birthday each
even-numbered year; or
(B) for a license issued or renewed in an
odd-numbered year, the individual license holder's birthday each
odd-numbered year.
(c) If a person holds more than one license, all licenses
issued to the person expire on the earliest expiration date of the
licenses held. Thereafter, all licenses expire in accordance with
Subsection (a).
(d) Notwithstanding Section 4003.002(b), the commissioner
may not prorate the initial application fee for a license based on
the expiration period of the license under Subsection (c).
SECTION 3. Section 4003.008(b), Insurance Code, is amended
to read as follows:
(b) The person must pay to the department a fee equal to the
license application fee.
SECTION 4. Subchapter B, Chapter 4004, Insurance Code, is
amended by adding Section 4004.055 to read as follows:
Sec. 4004.055. CONSEQUENCES OF FAILURE TO COMPLETE
CONTINUING EDUCATION REQUIREMENT. (a) The department may not
renew a license issued under this title if the license holder fails
to:
(1) complete an applicable continuing education
requirement not later than the 90th day after the last day of the
licensing period; or
(2) pay an applicable fine related to the failure to
timely complete continuing education.
(b) The department may not issue a new license under this
title to an individual who was previously licensed under this title
if the individual fails to:
(1) provide evidence of completion of an applicable
continuing education requirement for the expired, nonrenewed,
canceled, or revoked license; or
(2) pay an applicable fine related to the failure to
timely complete continuing education.
(c) Completion of continuing education after expiration of
a license is not a defense in a disciplinary action under Section
4005.101, Section 4005.109, or another provision of this code
against an individual who failed to complete continuing education
as required by this chapter.
SECTION 5. Sections 4101.057(a), (b), and (d), Insurance
Code, are amended to read as follows:
(a) Before issuing or renewing a license under this chapter,
the department shall set and collect a nonrefundable license
application fee in an amount not to exceed $50.
(b) An applicant for a renewal license must remit the fee
required by Subsection (a) before the expiration of the [biennially
after the issuance of the original] license being renewed. If the
applicant's license has been expired for not more than 90 days, an
applicant for a renewal license must remit, in addition to the fee
assessed under Subsection (a), a fee equal to one-half of the
original application [license] fee.
(d) Before issuing a duplicate license requested by an
adjuster, the department shall set and collect a duplicate license
application fee.
SECTION 6. Section 4101.061, Insurance Code, is amended to
read as follows:
Sec. 4101.061. EXPIRATION; RENEWAL. Expiration and
renewal of a license issued under this chapter are governed by
Chapter 4003, Section 4004.055, rules adopted by the commissioner,
and [or] any applicable provision of this code or another insurance
law of this state.
SECTION 7. Section 4102.062, Insurance Code, is amended to
read as follows:
Sec. 4102.062. EXPIRATION. A license issued under this
chapter expires as provided by Chapter 4003 [on the second
anniversary of the date of issuance] unless suspended or revoked by
the commissioner.
SECTION 8. Section 4102.064, Insurance Code, is amended to
read as follows:
Sec. 4102.064. RENEWAL OF UNEXPIRED LICENSE. (a) A license
holder may renew a license that has not expired and has not been
suspended or revoked by filing with the department a properly
completed renewal application, in the form prescribed by the
commissioner, that demonstrates continued compliance with the
license requirements imposed under this chapter or adopted by rule
by the commissioner. The completed renewal application must be
accompanied by:
(1) a renewal application fee in the amount determined
by the commissioner under Section 4102.066(b); and
(2) evidence of compliance with the continuing
education requirements imposed under Section 4102.109.
(b) A license holder must submit the completed renewal
application, evidence of compliance with the continuing education
requirements, and the renewal application fee to the commissioner
not later than the 30th day before the second anniversary date of
the license.
(c) On the filing of a completed renewal application,
renewal application fee, and, if applicable, evidence of compliance
with the continuing education requirements, the original license
continues in force until:
(1) the department issues the renewal license; [or]
(2) the license is not renewed under Section 4004.055;
or
(3) the commissioner issues an order revoking the
license.
SECTION 9. Sections 4102.065(a), (b), and (d), Insurance
Code, are amended to read as follows:
(a) A person whose license has been expired for 90 days or
less may renew the license by:
(1) submitting to the department:
(A) a completed renewal application in the form
prescribed by the commissioner; and
(B) evidence of compliance with the continuing
education requirements and eligibility for renewal under Section
4004.055; and
(2) paying to the department the required renewal
application fee and an additional fee that is equal to one-half of
the renewal application fee for the license.
(b) Except as provided by Section 4004.055, a [A] person
whose license has been expired for more than 90 days but less than
one year may not renew the license but is entitled to a new license
without taking the applicable examination if the person submits to
the department:
(1) a new application;
(2) evidence of compliance with the continuing
education requirements;
(3) the license application fee; and
(4) an additional fee equal to one-half of the license
application fee.
(d) The department may renew without reexamination an
expired license of a person who was licensed in this state, moved to
another state, and is currently licensed and has been in continual
practice in the other state up to and including the date of the
application. The person must pay to the department a fee that is
equal to the license application fee.
SECTION 10. (a) The change in law made by this Act applies
only to a license issued or renewed on or after January 1, 2016. A
license issued or renewed before January 1, 2016, is governed by the
law as it existed immediately before the effective date of this Act,
and that law is continued in effect for that purpose.
(b) On January 1, 2016, each license held on that date under
Chapter 981, Insurance Code, and Subtitles A, B, and C, Title 13,
Insurance Code, expires as follows:
(1) each license issued to a person that is not an
individual expires on the expiration date of the license with the
longest remaining term held by that person on January 1, 2016;
(2) each license issued to an individual expires, or
may be extended to expire, on the individual's next birthday after
the expiration date of the license with the longest remaining term
held by that person on January 1, 2016; and
(3) after a license expires as described by
Subdivision (1) or (2) of this subsection, the license renews and
expires as provided by Section 4003.001, Insurance Code, as amended
by this Act.
(c) To the extent that the term of an existing license is
extended under this section, the department may not charge an
additional fee or require a renewal application before the renewal
date established under this section.
(d) Except as provided by Subsection (e) of this section,
the change in law made by this Act does not change the continuing
education requirement for a license issued or renewed on or after
the effective date of this Act. Except as otherwise provided by
provisions of this Act, the continuing education requirement for a
license issued or renewed before the effective date of this Act is
governed by the law as it existed immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
(e) A licensee may not be required to complete additional
continuing education hours for a license during any period the
license was extended under this section beyond its original
expiration date.
(f) Section 4004.055, Insurance Code, as added by this Act,
applies only to completion of continuing education requirements for
a license issued or renewed on or after November 1, 2015. Completion
of continuing education requirements for a license issued or
renewed before November 1, 2015, is governed by the law as it
existed immediately before the effective date of this Act, and that
law is continued in effect for that purpose.
SECTION 11. This Act takes effect September 1, 2015.
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