| 1 | 1 | | By: Paul (Senate Sponsor - Eltife) H.B. No. 3872 |
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| 2 | 2 | | (In the Senate - Received from the House May 4, 2015; |
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| 3 | 3 | | May 5, 2015, read first time and referred to Committee on Business |
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| 4 | 4 | | and Commerce; May 18, 2015, reported adversely, with favorable |
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| 5 | 5 | | Committee Substitute by the following vote: Yeas 7, Nays 0, 1 |
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| 6 | 6 | | present not voting; May 18, 2015, sent to printer.) |
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| 7 | 7 | | Click here to see the committee vote |
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| 8 | 8 | | COMMITTEE SUBSTITUTE FOR H.B. No. 3872 By: Watson |
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| 9 | 9 | | |
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| 10 | 10 | | |
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| 11 | 11 | | A BILL TO BE ENTITLED |
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| 12 | 12 | | AN ACT |
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| 13 | 13 | | relating to licensing requirements, including continuing education |
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| 14 | 14 | | requirements for insurance agents, insurance adjusters, and public |
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| 15 | 15 | | adjusters. |
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| 16 | 16 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 17 | 17 | | SECTION 1. Section 4004.053(a), Insurance Code, is amended |
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| 18 | 18 | | to read as follows: |
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| 19 | 19 | | (a) An individual who holds a general life, accident, and |
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| 20 | 20 | | health license, a life agent license, a life and health insurance |
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| 21 | 21 | | counselor license, an adjuster license, a managing general agent |
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| 22 | 22 | | license, a general property and casualty license, or a personal |
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| 23 | 23 | | lines property and casualty license must complete 24 [15] hours of |
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| 24 | 24 | | continuing education during the license period [annually]. If the |
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| 25 | 25 | | individual holds more than one license for which continuing |
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| 26 | 26 | | education is otherwise required, the individual is not required to |
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| 27 | 27 | | complete more than 24 [15] continuing education hours for all |
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| 28 | 28 | | licenses during the license period [annually]. An individual who |
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| 29 | 29 | | is required under rules adopted under Chapter 4008 to hold a |
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| 30 | 30 | | certificate to sell a designated product or product line may use |
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| 31 | 31 | | continuing education programs administered under Section 4004.151 |
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| 32 | 32 | | to satisfy the [annual] continuing education requirements under |
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| 33 | 33 | | this subsection. |
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| 34 | 34 | | SECTION 2. Subchapter B, Chapter 4056, Insurance Code, is |
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| 35 | 35 | | amended by adding Section 4056.059 to read as follows: |
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| 36 | 36 | | Sec. 4056.059. TRANSITION TO RESIDENT AGENT LICENSE. (a) |
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| 37 | 37 | | This section applies only to an individual who is a nonresident |
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| 38 | 38 | | agent licensed under Section 4056.052 and who has moved from the |
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| 39 | 39 | | other state that licensed the individual to this state. |
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| 40 | 40 | | (b) A nonresident agent may apply to the department for a |
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| 41 | 41 | | comparable license for residents of this state. An application |
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| 42 | 42 | | must include: |
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| 43 | 43 | | (1) a notification of the agent's change of address and |
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| 44 | 44 | | contact information; |
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| 45 | 45 | | (2) a clearance letter from the state authority of the |
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| 46 | 46 | | state that issued the agent's prior resident license demonstrating |
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| 47 | 47 | | the agent's good standing with that authority; and |
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| 48 | 48 | | (3) fingerprint forms in the format prescribed by the |
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| 49 | 49 | | department, which may be electronic. |
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| 50 | 50 | | (c) If a nonresident agent submits a satisfactory |
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| 51 | 51 | | application in accordance with Subsection (b), the department shall |
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| 52 | 52 | | issue a comparable resident agent license to the agent for the |
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| 53 | 53 | | remaining term on the agent's nonresident agent license and cancel |
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| 54 | 54 | | the agent's nonresident agent license. |
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| 55 | 55 | | (d) The department shall prorate the continuing education |
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| 56 | 56 | | requirement for a license issued under this section. |
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| 57 | 57 | | SECTION 3. Section 4102.109(a), Insurance Code, is amended |
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| 58 | 58 | | to read as follows: |
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| 59 | 59 | | (a) Each license holder must [annually] complete at least 24 |
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| 60 | 60 | | [15] hours of continuing education during the license period |
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| 61 | 61 | | [courses]. The commissioner by rule shall prescribe the |
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| 62 | 62 | | requirements for continuing education courses under this section. |
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| 63 | 63 | | SECTION 4. (a) Sections 4004.053(a) and 4102.109(a), |
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| 64 | 64 | | Insurance Code, as amended by this Act, apply only to a license |
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| 65 | 65 | | issued or renewed on or after the effective date of this Act. A |
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| 66 | 66 | | license issued or renewed before the effective date of this Act is |
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| 67 | 67 | | governed by the law in effect immediately before the effective date |
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| 68 | 68 | | of this Act, and that law is continued in effect for that purpose. |
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| 69 | 69 | | (b) Section 4056.059, Insurance Code, as added by this Act, |
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| 70 | 70 | | applies only to a nonresident agent who relocates to this state on |
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| 71 | 71 | | or after the effective date of this Act. A nonresident agent who |
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| 72 | 72 | | relocates to this state before the effective date of this Act is |
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| 73 | 73 | | governed by the law as it existed immediately before the effective |
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| 74 | 74 | | date of this Act, and that law is continued in effect for that |
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| 75 | 75 | | purpose. |
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| 76 | 76 | | SECTION 5. This Act takes effect September 1, 2015. |
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| 77 | 77 | | * * * * * |
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