By: Paul (Senate Sponsor - Eltife) H.B. No. 3910
(In the Senate - Received from the House May 6, 2015;
May 7, 2015, read first time and referred to Committee on Business
and Commerce; May 20, 2015, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 7, Nays 0,
1 present not voting; May 20, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 3910 By: Eltife
A BILL TO BE ENTITLED
AN ACT
relating to completion of continuing education requirements for
insurance agents and adjusters.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4003.006, Insurance Code, is amended to
read as follows:
Sec. 4003.006. CONTINUATION OF ORIGINAL LICENSE. The
original license of a person who has applied for license renewal in
compliance with Section 4003.004 [4003. 004] remains in effect from
the date the renewal application is filed until the date:
(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 2. Section 4004.051(a), Insurance Code, is amended
to read as follows:
(a) Except as provided by Section 4004.052 or other law,
each individual who holds a license issued by the department shall
complete, as a condition of licensure, continuing education as
provided by this chapter.
SECTION 3. 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 4. Section 4004.101(a), Insurance Code, is amended
to read as follows:
(a) The department shall certify continuing education
programs for agents and adjusters. The certification criteria must
be designed to ensure that continuing education programs enhance
the knowledge, understanding, and professional competence of the
license holder.
SECTION 5. Subchapter C, Chapter 4004, Insurance Code, is
amended by adding Section 4004.105 to read as follows:
Sec. 4004.105. ADJUSTER CONTINUING EDUCATION PROGRAM
CONTENTS. A continuing education program for adjusters licensed
under Chapter 4101 must include education relating to:
(1) Chapter 541;
(2) Chapter 547;
(3) Subchapter A, Chapter 542;
(4) Subchapter E, Chapter 17, Business & Commerce
Code; and
(5) any other similar laws specified by the
department.
SECTION 6. Section 4005.105(d), Insurance Code, is amended
to read as follows:
(d) Subsections (b) and [Subsection] (c) do [does] not apply
to an applicant whose license application was denied or revoked for
failure by the applicant to:
(1) pass a required written examination; [or]
(2) complete continuing education or pay an applicable
fine under Section 4004.055(a); or
(3) submit a properly completed license application.
SECTION 7. Section 4005.109, Insurance Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) A violation for which a fine may be assessed under this
section includes a failure to:
(1) obtain the total number of continuing education
hours before the expiration [renewal] date of a license;
(2) timely report a change of address to the
department; or
(3) notify the department of an administrative action
against the agent by a financial or insurance regulator of another
state or of the federal government.
(b-1) The aggregate amount of fines assessed under
Subsection (b)(1) may not exceed $500 for a licensing period.
SECTION 8. Section 4101.059(a), Insurance Code, is amended
to read as follows:
(a) To renew a license under this chapter, a licensed
adjuster must participate in a continuing education program under
Chapter 4004 [relating to consumer protection]. [The program must
include education relating to consumer protection laws, including:
[(1) Chapter 541;
[(2) Chapter 547;
[(3) Subchapter A, Chapter 542;
[(4) Subchapter E, Chapter 17, Business & Commerce
Code; and
[(5) any other similar laws specified by the
department.]
SECTION 9. 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
Section 4004.055, rules adopted by the commissioner, and [or] any
applicable provision of this code or another insurance law of this
state.
SECTION 10. Section 4102.064(c), Insurance Code, is amended
to read as follows:
(c) On the filing of a completed renewal application,
renewal 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 11. Sections 4102.065(a), (b), and (c), 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 fee
and an additional fee that is equal to one-half of the renewal 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 fee; and
(4) an additional fee equal to one-half of the license
fee.
(c) A person whose license has been expired for one year or
more may not renew the license. The person may obtain a new license
by:
(1) submitting to reexamination, if examination is
required for original issuance of the license;
(2) [, and by] complying with the requirements and
procedures for obtaining an original license; and
(3) if applicable, submitting evidence of completion
of any outstanding continuing education requirement related to the
expired license.
SECTION 12. The change in law made by this Act applies only
to a license issued or renewed on or after the effective date of
this Act. 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.
SECTION 13. This Act takes effect November 1, 2015.
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