Texas 2015 - 84th Regular

Texas House Bill HB2893 Compare Versions

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1	1	84R7852 MEW-F
2	2	By: Frullo H.B. No. 2893
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the licensing of insurance agents and adjusters;
8	8	providing a penalty.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 4001.006(a) and (b), Insurance Code,
11	11	are amended to read as follows:
12	12	(a) The department shall collect from each agent of an
13	13	insurer writing insurance in this state under this code:
14	14	(1) a nonrefundable license application fee; and
15	15	(2) a nonrefundable appointment fee for each
16	16	appointment of the agent by an insurer.
17	17	(b) The department shall deposit the fees described by
18	18	Subsection (a), together with other license application fees,
19	19	examination fees, and license renewal application fees, to the
20	20	credit of the Texas Department of Insurance operating account.
21	21	SECTION 2. Section 4001.162, Insurance Code, is amended to
22	22	read as follows:
23	23	Sec. 4001.162. RESTRICTION ON APPOINTMENT OF TEMPORARY
24	24	LICENSE HOLDERS. (a) Except as provided by Subsection (b), an [An]
25	25	agent, insurer, or health maintenance organization may not appoint
26	26	more than 500 temporary license holders during a calendar year.
27	27	(b) The commissioner shall adopt reasonable rules setting
28	28	standards for an agent, insurer, or health maintenance organization
29	29	to appoint more than 500 temporary license holders during a
30	30	calendar year. The standards must include consideration of the
31	31	ability of an agent, insurer, or health maintenance organization to
32	32	monitor appointed temporary agents.
33	33	SECTION 3. Section 4003.001, Insurance Code, is amended by
34	34	amending Subsection (a) and adding Subsections (c) and (d) to read
35	35	as follows:
36	36	(a) Unless a staggered renewal system is adopted under
37	37	Section 4003.002, each [agent] license issued or renewed by the
38	38	department under Chapter 981 or Subtitle A, B, or C and not
39	39	suspended or revoked by the commissioner expires on:
40	40	(1) the second anniversary of the date the license is
41	41	issued to or renewed by a person that is not an individual; or
42	42	(2) except as provided in Subsection (c):
43	43	(A) for a license issued or renewed in an
44	44	even-numbered year, the individual license holder's birthday each
45	45	even-numbered year; or
46	46	(B) for a license issued or renewed in an
47	47	odd-numbered year, the individual license holder's birthday each
48	48	odd-numbered year.
49	49	(c) If a person holds more than one license, all licenses
50	50	issued to the person expire on the earliest expiration date of the
51	51	licenses held. Thereafter, all licenses expire in accordance with
52	52	Subsection (a).
53	53	(d) Notwithstanding Section 4003.002(b), the commissioner
54	54	may not prorate the initial application fee for a license based on
55	55	the expiration period of the license under Subsection (c).
56	56	SECTION 4. Section 4003.006, Insurance Code, is amended to
57	57	read as follows:
58	58	Sec. 4003.006. CONTINUATION OF ORIGINAL LICENSE. The
59	59	original license of a person who has applied for license renewal in
60	60	compliance with Section 4003.004 [4003. 004] remains in effect from
61	61	the date the renewal application is filed until the date:
62	62	(1) the department issues the renewal license; [or]
63	63	(2) the license is not renewed under Section 4004.055;
64	64	or
65	65	(3) the commissioner issues an order revoking the
66	66	license.
67	67	SECTION 5. Section 4003.008(b), Insurance Code, is amended
68	68	to read as follows:
69	69	(b) The person must pay to the department a fee equal to the
70	70	license application fee.
71	71	SECTION 6. Section 4004.051(a), Insurance Code, is amended
72	72	to read as follows:
73	73	(a) Except as provided by Section 4004.052 or other law,
74	74	each individual who holds a license issued by the department shall
75	75	complete, as a condition of licensure, continuing education as
76	76	provided by this chapter.
77	77	SECTION 7. Section 4004.053(a), Insurance Code, is amended
78	78	to read as follows:
79	79	(a) An individual who holds a general life, accident, and
80	80	health license, a life agent license, a life and health insurance
81	81	counselor license, an adjuster license, a managing general agent
82	82	license, a general property and casualty license, or a personal
83	83	lines property and casualty license must complete 24 [15] hours of
84	84	continuing education during the license period [annually]. If the
85	85	individual holds more than one license for which continuing
86	86	education is otherwise required, the individual is not required to
87	87	complete more than 24 [15] continuing education hours for all
88	88	licenses during the license period [annually]. An individual who
89	89	is required under rules adopted under Chapter 4008 to hold a
90	90	certificate to sell a designated product or product line may use
91	91	continuing education programs administered under Section 4004.151
92	92	to satisfy the annual continuing education requirements under this
93	93	subsection.
94	94	SECTION 8. Subchapter B, Chapter 4004, Insurance Code, is
95	95	amended by adding Section 4004.055 to read as follows:
96	96	Sec. 4004.055. CONSEQUENCES OF FAILURE TO COMPLETE
97	97	CONTINUING EDUCATION REQUIREMENT. (a) The department may not
98	98	renew a license issued under this title if the license holder fails
99	99	to:
100	100	(1) complete an applicable continuing education
101	101	requirement not later than the 90th day after the last day of the
102	102	licensing period; or
103	103	(2) pay an applicable fine related to the failure to
104	104	timely complete continuing education.
105	105	(b) The department may not issue a new license under this
106	106	title to an individual who was previously licensed under this title
107	107	if the individual fails to:
108	108	(1) provide evidence of completion of an applicable
109	109	continuing education requirement for the expired, nonrenewed,
110	110	canceled, or revoked license; or
111	111	(2) pay an applicable fine related to the failure to
112	112	timely complete continuing education.
113	113	(c) Completion of continuing education after expiration of
114	114	a license is not a defense in a disciplinary action under Section
115	115	4005.101, Section 4005.109, or another provision of this code
116	116	against an individual who failed to complete continuing education
117	117	as required by this chapter.
118	118	SECTION 9. Section 4004.101(a), Insurance Code, is amended
119	119	to read as follows:
120	120	(a) The department shall certify continuing education
121	121	programs for agents and adjusters. The certification criteria must
122	122	be designed to ensure that continuing education programs enhance
123	123	the knowledge, understanding, and professional competence of the
124	124	license holder.
125	125	SECTION 10. Subchapter C, Chapter 4004, Insurance Code, is
126	126	amended by adding Section 4004.105 to read as follows:
127	127	Sec. 4004.105. ADJUSTER CONTINUING EDUCATION PROGRAM
128	128	CONTENTS. A continuing education program for adjusters licensed
129	129	under Chapter 4101 must include education relating to:
130	130	(1) Chapter 541;
131	131	(2) Chapter 547;
132	132	(3) Subchapter A, Chapter 542;
133	133	(4) Subchapter E, Chapter 17, Business & Commerce
134	134	Code; and
135	135	(5) any other similar laws specified by the
136	136	department.
137	137	SECTION 11. Section 4005.105(d), Insurance Code, is amended
138	138	to read as follows:
139	139	(d) Subsections (b) and [Subsection] (c) do [does] not apply
140	140	to an applicant whose license application was denied or revoked for
141	141	failure by the applicant to:
142	142	(1) pass a required written examination; [or]
143	143	(2) complete continuing education or pay an applicable
144	144	fine under Section 4004.055(a); or
145	145	(3) submit a properly completed license application.
146	146	SECTION 12. Section 4005.109, Insurance Code, is amended by
147	147	amending Subsection (b) and adding Subsection (b-1) to read as
148	148	follows:
149	149	(b) A violation for which a fine may be assessed under this
150	150	section includes a failure to:
151	151	(1) obtain the total number of continuing education
152	152	hours before the expiration [renewal] date of a license;
153	153	(2) timely report a change of address to the
154	154	department; or
155	155	(3) notify the department of an administrative action
156	156	against the agent by a financial or insurance regulator of another
157	157	state or of the federal government.
158	158	(b-1) The aggregate amount of fines assessed under
159	159	Subsection (b)(1) may not exceed $500 for a licensing period.
160	160	SECTION 13. Subchapter B, Chapter 4056, Insurance Code, is
161	161	amended by adding Section 4056.059 to read as follows:
162	162	Sec. 4056.059. TRANSITION TO RESIDENT AGENT LICENSE. (a)
163	163	This section applies only to an individual who is a nonresident
164	164	agent licensed under Section 4056.052 and who has moved from the
165	165	other state that licensed the individual to this state.
166	166	(b) A nonresident agent may apply to the department for a
167	167	comparable license for residents of this state. An application
168	168	must include:
169	169	(1) a notification of the agent's change of address and
170	170	contact information;
171	171	(2) a clearance letter from the state authority of the
172	172	state that issued the agent's prior resident license demonstrating
173	173	the agent's good standing with that authority; and
174	174	(3) fingerprint forms in the format prescribed by the
175	175	department, which may be electronic.
176	176	(c) If a nonresident agent submits a satisfactory
177	177	application in accordance with Subsection (b), the department shall
178	178	issue a comparable resident agent license to the agent and revoke
179	179	the agent's nonresident agent license.
180	180	SECTION 14. Sections 4101.057(a), (b), and (d), Insurance
181	181	Code, are amended to read as follows:
182	182	(a) Before issuing or renewing a license under this chapter,
183	183	the department shall set and collect a nonrefundable license
184	184	application fee in an amount not to exceed $50.
185	185	(b) An applicant for a renewal license must remit the fee
186	186	required by Subsection (a) before the expiration of the [biennially
187	187	after the issuance of the original] license being renewed. If the
188	188	applicant's license has been expired for not more than 90 days, an
189	189	applicant for a renewal license must remit, in addition to the fee
190	190	assessed under Subsection (a), a fee equal to one-half of the
191	191	original application [license] fee.
192	192	(d) Before issuing a duplicate license requested by an
193	193	adjuster, the department shall set and collect a duplicate license
194	194	application fee.
195	195	SECTION 15. Section 4101.059(a), Insurance Code, is amended
196	196	to read as follows:
197	197	(a) To renew a license under this chapter, a licensed
198	198	adjuster must participate in a continuing education program under
199	199	Chapter 4004 [relating to consumer protection]. [The program must
200	200	include education relating to consumer protection laws, including:
201	201	[(1) Chapter 541;
202	202	[(2) Chapter 547;
203	203	[(3) Subchapter A, Chapter 542;
204	204	[(4) Subchapter E, Chapter 17, Business & Commerce
205	205	Code; and
206	206	[(5) any other similar laws specified by the
207	207	department.]
208	208	SECTION 16. Section 4101.061, Insurance Code, is amended to
209	209	read as follows:
210	210	Sec. 4101.061. EXPIRATION; RENEWAL. Expiration and
211	211	renewal of a license issued under this chapter are governed by
212	212	Sections 4003.001 and 4004.055, rules adopted by the commissioner,
213	213	and [or] any applicable provision of this code or another insurance
214	214	law of this state.
215	215	SECTION 17. Section 4102.062, Insurance Code, is amended to
216	216	read as follows:
217	217	Sec. 4102.062. EXPIRATION. A license issued under this
218	218	chapter expires as provided by Chapter 4003 [on the second
219	219	anniversary of the date of issuance] unless suspended or revoked by
220	220	the commissioner.
221	221	SECTION 18. Section 4102.064, Insurance Code, is amended to
222	222	read as follows:
223	223	Sec. 4102.064. RENEWAL OF UNEXPIRED LICENSE. (a) A license
224	224	holder may renew a license that has not expired and has not been
225	225	suspended or revoked by filing with the department a properly
226	226	completed renewal application, in the form prescribed by the
227	227	commissioner, that demonstrates continued compliance with the
228	228	license requirements imposed under this chapter or adopted by rule
229	229	by the commissioner. The completed renewal application must be
230	230	accompanied by:
231	231	(1) a renewal application fee in the amount determined
232	232	by the commissioner under Section 4102.066(b); and
233	233	(2) evidence of compliance with the continuing
234	234	education requirements imposed under Section 4102.109.
235	235	(b) A license holder must submit the completed renewal
236	236	application, evidence of compliance with the continuing education
237	237	requirements, and the renewal application fee to the commissioner
238	238	not later than the 30th day before the second anniversary date of
239	239	the license.
240	240	(c) On the filing of a completed renewal application, a
241	241	renewal application fee, and, if applicable, evidence of compliance
242	242	with the continuing education requirements, the original license
243	243	continues in force until:
244	244	(1) the department issues the renewal license; [or]
245	245	(2) the license is not renewed under Section 4004.055;
246	246	or
247	247	(3) the commissioner issues an order revoking the
248	248	license.
249	249	SECTION 19. Section 4102.065, Insurance Code, is amended to
250	250	read as follows:
251	251	Sec. 4102.065. RENEWAL OF EXPIRED LICENSE. (a) A person
252	252	whose license has been expired for 90 days or less may renew the
253	253	license by:
254	254	(1) submitting to the department:
255	255	(A) a completed renewal application in the form
256	256	prescribed by the commissioner; and
257	257	(B) evidence of compliance with the continuing
258	258	education requirements and eligibility for renewal under Section
259	259	4004.055; and
260	260	(2) paying to the department the required renewal
261	261	application fee and an additional fee that is equal to one-half of
262	262	the renewal application fee for the license.
263	263	(b) Except as provided by Section 4004.055, a [A] person
264	264	whose license has been expired for more than 90 days but less than
265	265	one year may not renew the license but is entitled to a new license
266	266	without taking the applicable examination if the person submits to
267	267	the department:
268	268	(1) a new application;
269	269	(2) evidence of compliance with the continuing
270	270	education requirements;
271	271	(3) the license application fee; and
272	272	(4) an additional fee equal to one-half of the license
273	273	application fee.
274	274	(c) A person whose license has been expired for one year or
275	275	more may not renew the license. The person may obtain a new license
276	276	by:
277	277	(1) submitting to reexamination, if examination is
278	278	required for original issuance of the license;
279	279	(2) [, and by] complying with the requirements and
280	280	procedures for obtaining an original license; and
281	281	(3) if applicable, submitting evidence of completion
282	282	of any outstanding continuing education requirement related to the
283	283	expired license.
284	284	(d) The department may renew without reexamination an
285	285	expired license of a person who was licensed in this state, moved to
286	286	another state, and is currently licensed and has been in continual
287	287	practice in the other state up to and including the date of the
288	288	application. The person must pay to the department a fee that is
289	289	equal to the license application fee.
290	290	SECTION 20. Section 4102.109(a), Insurance Code, is amended
291	291	to read as follows:
292	292	(a) Each license holder must annually complete at least 24
293	293	[15] hours of continuing education during the license period
294	294	[courses]. The commissioner by rule shall prescribe the
295	295	requirements for continuing education courses under this section.
296	296	SECTION 21. (a) Sections 4001.006, 4003.001, 4003.008,
297	297	4101.057, 4101.061, 4102.062, 4102.064, and 4102.065, Insurance
298	298	Code, as amended by this Act, apply only to a license issued or
299	299	renewed on or after January 1, 2016. A license issued or renewed
300	300	before January 1, 2016, is governed by the law as it existed
301	301	immediately before the effective date of this Act, and that law is
302	302	continued in effect for that purpose.
303	303	(b) On January 1, 2016, each license held on that date under
304	304	Chapter 981, Insurance Code, and Subtitles A, B, and C, Title 13,
305	305	Insurance Code, expires as follows:
306	306	(1) each license issued to a person that is not an
307	307	individual expires on the expiration date of the license with the
308	308	longest remaining term held by that person on January 1, 2016;
309	309	(2) each license issued to an individual expires, or
310	310	may be extended to expire, on the individual's birthday in the year
311	311	after the expiration date of the license with the longest remaining
312	312	term held by that person on January 1, 2016; and
313	313	(3) after a license expires as described by
314	314	Subdivision (1) or (2) of this subsection, the license renews and
315	315	expires as provided by Section 4003.001, Insurance Code, as amended
316	316	by this Act.
317	317	(c) To the extent that the term of an existing license is
318	318	extended under this section, the department may not charge an
319	319	additional fee or require a renewal application before the renewal
320	320	date established under this section.
321	321	(d) Except as provided by Subsection (e) of this section,
322	322	the change in law made by the amendments listed in Subsection (a) of
323	323	this section and the provisions of this section do not change the
324	324	continuing education requirements for a license issued or renewed
325	325	on or after January 1, 2016. Except as otherwise provided by
326	326	provisions of this Act other than this section and the amendments
327	327	listed in Subsection (a) of this section, the continuing education
328	328	requirements for a license issued or renewed before January 1,
329	329	2016, are governed by the law as it existed immediately before the
330	330	effective date of this Act, and that law is continued in effect for
331	331	that purpose.
332	332	(e) A licensee may not be required to complete additional
333	333	continuing education hours for a license during any period the
334	334	license was extended under this section beyond its original
335	335	expiration date.
336	336	SECTION 22. Sections 4004.053 and 4102.109, Insurance Code,
337	337	as amended by this Act, apply only to continuing education
338	338	requirements for a license issued or renewed on or after the
339	339	effective date of this Act. Continuing education requirements for
340	340	a license issued or renewed before the effective date of this Act
341	341	are governed by the law as it existed immediately before the
342	342	effective date of this Act, and that law is continued in effect for
343	343	that purpose.
344	344	SECTION 23. Section 4004.055, Insurance Code, as added by
345	345	this Act, and Sections 4004.051, 4005.105, and 4005.109, Insurance
346	346	Code, as amended by this Act, apply only to completion of continuing
347	347	education requirements for a license issued or renewed on or after
348	348	November 1, 2015. Completion of continuing education requirements
349	349	for a license issued or renewed before November 1, 2015, is governed
350	350	by the law as it existed immediately before the effective date of
351	351	this Act, and that law is continued in effect for that purpose.
352	352	SECTION 24. Section 4056.059, Insurance Code, as added by
353	353	this Act, applies only to a nonresident agent who relocates to this
354	354	state on or after the effective date of this Act. An agent who
355	355	relocates to this state before the effective date of this Act is
356	356	governed by the law as it existed immediately before that date, and
357	357	that law is continued in effect for that purpose.
358	358	SECTION 25. This Act takes effect September 1, 2015.