Texas 2021 - 87th Regular

Texas Senate Bill SB1810 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R8588 MWC-F
2	2	By: Hancock S.B. No. 1810
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the licensing and regulation of insurance
8	8	professionals.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 443.156(a), Insurance Code, is amended
11	11	to read as follows:
12	12	(a) Every person who represented the insurer as an agent and
13	13	receives notice in the form prescribed in Section 443.155 that the
14	14	insurer is the subject of a liquidation order, not later than the
15	15	30th day after the date of the notice, shall provide to the
16	16	liquidator, in addition to the information the agent may be
17	17	required to provide pursuant to Section 443.010, the information in
18	18	the agent's records related to any policy issued by the insurer
19	19	through the agent and any policy issued by the insurer through an
20	20	agent under contract to the agent, including the name and address of
21	21	any individual who acted for or on behalf of the agent [subagent].
22	22	For purposes of this subsection, a policy is issued through an agent
23	23	if the agent has a property interest in the expiration of the policy
24	24	or if the agent has had in the agent's possession a copy of the
25	25	declarations of the policy at any time during the life of the
26	26	policy, except where the ownership of the expiration of the policy
27	27	has been transferred to another.
28	28	SECTION 2. Section 521.151, Insurance Code, is amended to
29	29	read as follows:
30	30	Sec. 521.151. APPLICABILITY OF SUBCHAPTER. This subchapter
31	31	applies to any legal entity engaged in the business of insurance in
32	32	this state, including:
33	33	(1) a capital stock insurance company;
34	34	(2) a mutual insurance company;
35	35	(3) a title insurance company;
36	36	(4) a fraternal benefit society;
37	37	(5) a local mutual aid association;
38	38	(6) a statewide mutual assessment company;
39	39	(7) a county mutual insurance company;
40	40	(8) a Lloyd's plan;
41	41	(9) a reciprocal or interinsurance exchange;
42	42	(10) a stipulated premium company;
43	43	(11) a group hospital service corporation;
44	44	(12) a farm mutual insurance company;
45	45	(13) a risk retention group;
46	46	(14) an eligible surplus lines insurer; and
47	47	(15) an agent, broker, or adjuster[, or life and
48	48	health insurance counselor].
49	49	SECTION 3. Section 541.002(2), Insurance Code, is amended
50	50	to read as follows:
51	51	(2) "Person" means an individual, corporation,
52	52	association, partnership, reciprocal or interinsurance exchange,
53	53	Lloyd's plan, fraternal benefit society, or other legal entity
54	54	engaged in the business of insurance, including an agent, broker,
55	55	or adjuster[, or life and health insurance counselor].
56	56	SECTION 4. Section 544.001, Insurance Code, is amended to
57	57	read as follows:
58	58	Sec. 544.001. APPLICABILITY OF SUBCHAPTER. This subchapter
59	59	applies to:
60	60	(1) any legal entity engaged in the business of
61	61	insurance in this state, including:
62	62	(A) a capital stock insurance company;
63	63	(B) a mutual insurance company;
64	64	(C) a title insurance company;
65	65	(D) a fraternal benefit society;
66	66	(E) a local mutual aid association;
67	67	(F) a statewide mutual assessment company;
68	68	(G) a county mutual insurance company;
69	69	(H) a Lloyd's plan;
70	70	(I) a reciprocal or interinsurance exchange;
71	71	(J) a stipulated premium company;
72	72	(K) a group hospital service corporation;
73	73	(L) a farm mutual insurance company;
74	74	(M) a risk retention group;
75	75	(N) an eligible surplus lines insurer; and
76	76	(O) an agent, broker, or adjuster[, or life and
77	77	health insurance counselor]; and
78	78	(2) a health maintenance organization.
79	79	SECTION 5. Section 544.051, Insurance Code, is amended to
80	80	read as follows:
81	81	Sec. 544.051. APPLICABILITY OF SUBCHAPTER. This subchapter
82	82	applies to any individual, corporation, association, partnership,
83	83	or other legal entity engaged in the business of insurance,
84	84	including:
85	85	(1) a fraternal benefit society;
86	86	(2) a county mutual insurance company;
87	87	(3) a Lloyd's plan;
88	88	(4) a reciprocal or interinsurance exchange;
89	89	(5) a farm mutual insurance company; and
90	90	(6) an agent, broker, or adjuster[, or life and health
91	91	insurance counselor].
92	92	SECTION 6. Section 1131.056(a), Insurance Code, is amended
93	93	to read as follows:
94	94	(a) In this section, "agent" includes a general agent[,
95	95	subagent,] or a salesperson.
96	96	SECTION 7. Section 4001.002(b), Insurance Code, is amended
97	97	to read as follows:
98	98	(b) This title does not apply to:
99	99	(1) a resident of this state who arbitrates in the
100	100	adjustment of losses between an insurer and an insured, a marine
101	101	adjuster who adjusts particular or general average losses of
102	102	vessels or cargoes if the adjuster paid an occupation tax of $200
103	103	for the year in which the adjustment is made, or a practicing
104	104	attorney at law in this state, acting in the regular transaction of
105	105	the person's business as an attorney at law, who is not a local
106	106	agent and is not acting as an adjuster for an insurer;
107	107	(2) [a full-time home office salaried employee of an
108	108	insurer authorized to engage in the business of insurance in this
109	109	state, other than an employee who solicits or receives an
110	110	application for the sale of insurance through an oral, written, or
111	111	electronic communication in accordance with Subchapter G, Chapter
112	112	4051;
113	113	[(3)] an attorney in fact or the traveling salaried
114	114	representative of a reciprocal or interinsurance exchange admitted
115	115	to engage in the business of insurance in this state as to business
116	116	transacted through the attorney in fact or salaried representative;
117	117	(3) [(4)] the attorney in fact for a Lloyd's plan;
118	118	(4) [(5)] the group motor vehicle insurance business
119	119	or the group motor vehicle department of a company engaged in that
120	120	business; or
121	121	(5) [(6)] a salaried employee who is not involved in
122	122	soliciting or negotiating insurance in the office of an agent and
123	123	who devotes the employee's full time to clerical and administrative
124	124	services, including the incidental taking of information from
125	125	customers and receipt of premiums in the office of an agent, if:
126	126	(A) the employee does not receive any
127	127	commissions; and
128	128	(B) the employee's compensation is not varied by
129	129	the volume of premiums taken and received.
130	130	SECTION 8. Section 4001.003(1), Insurance Code, is amended
131	131	to read as follows:
132	132	(1) "Agent" means a person who is an authorized agent
133	133	of an insurer or health maintenance organization [, a subagent,]
134	134	and any other person who performs the acts of an agent, whether
135	135	through an oral, written, electronic, or other form of
136	136	communication, by soliciting, negotiating, procuring, or
137	137	collecting a premium on an insurance or annuity contract, or who
138	138	represents or purports to represent a health maintenance
139	139	organization, including a health maintenance organization offering
140	140	only a single health care service plan, in soliciting, negotiating,
141	141	procuring, or effectuating membership in the health maintenance
142	142	organization. The term does not include:
143	143	(A) a regular salaried officer or employee of an
144	144	insurer, health maintenance organization, or agent who:
145	145	(i) devotes substantially all of the
146	146	officer's or employee's time to activities other than the
147	147	solicitation of applications for insurance, annuity contracts, or
148	148	memberships;
149	149	(ii) does not receive a commission or other
150	150	compensation directly dependent on the business obtained; and
151	151	(iii) does not solicit or accept from the
152	152	public applications for insurance, annuity contracts, or
153	153	memberships;
154	154	(B) an employer or an employer's officer or
155	155	employee or a trustee of an employee benefit plan, to the extent
156	156	that the employer, officer, employee, or trustee is engaged in the
157	157	administration or operation of an employee benefits program
158	158	involving the use of insurance or annuities issued by an insurer or
159	159	memberships issued by a health maintenance organization, if the
160	160	employer, officer, employee, or trustee is not directly or
161	161	indirectly compensated by the insurer or health maintenance
162	162	organization issuing the insurance or annuity contracts or
163	163	memberships;
164	164	(C) except as otherwise provided by this code, a
165	165	depository institution, or an officer or employee of a depository
166	166	institution, to the extent that the depository institution or
167	167	officer or employee collects and remits premiums or charges by
168	168	charging those premiums or charges against accounts of depositors
169	169	on the orders of those depositors; or
170	170	(D) a person or the employee of a person who has
171	171	contracted to provide administrative, management, or health care
172	172	services to a health maintenance organization and who is
173	173	compensated for those services by the payment of an amount computed
174	174	as a percentage of the revenues, net income, or profit of the health
175	175	maintenance organization, if that method of compensation is the
176	176	sole basis for subjecting that person or the employee of the person
177	177	to this title.
178	178	SECTION 9. Section 4001.051(b), Insurance Code, is amended
179	179	to read as follows:
180	180	(b) Regardless of whether the act is done at the request of
181	181	or by the employment of an insurer, broker, or other person, a
182	182	person is the agent of the insurer for which the act is done or risk
183	183	is taken for purposes of the liabilities, duties, requirements, and
184	184	penalties provided by this title or [,] Chapter 21[, or a provision
185	185	listed in Section 4001.009] if the person:
186	186	(1) solicits insurance on behalf of the insurer;
187	187	(2) receives or transmits other than on the person's
188	188	own behalf an application for insurance or an insurance policy to or
189	189	from the insurer;
190	190	(3) advertises or otherwise gives notice that the
191	191	person will receive or transmit an application for insurance or an
192	192	insurance policy;
193	193	(4) receives or transmits an insurance policy of the
194	194	insurer;
195	195	(5) examines or inspects a risk;
196	196	(6) receives, collects, or transmits an insurance
197	197	premium;
198	198	(7) makes or forwards a diagram of a building;
199	199	(8) takes any other action in the making or
200	200	consummation of an insurance contract for or with the insurer other
201	201	than on the person's own behalf; or
202	202	(9) examines into, adjusts, or aids in adjusting a
203	203	loss for or on behalf of the insurer.
204	204	SECTION 10. Section 4001.106(b), Insurance Code, is amended
205	205	to read as follows:
206	206	(b) The department shall issue a license to a corporation or
207	207	partnership if the department determines that:
208	208	(1) the corporation or partnership is:
209	209	(A) organized under the laws of this state or
210	210	another state; and
211	211	(B) authorized by its articles of incorporation
212	212	or its partnership agreement to act as an agent;
213	213	(2) at least one officer of the corporation or one
214	214	active partner of the partnership and all other persons performing
215	215	any acts of an agent on behalf of the corporation or partnership in
216	216	this state are individually licensed by the department separately
217	217	from the corporation or partnership;
218	218	(3) the corporation or partnership will have the
219	219	ability to pay any amount up to $25,000 that it might become legally
220	220	obligated to pay under a claim made against it by a customer and
221	221	caused by a negligent act, error, or omission of the corporation or
222	222	partnership or a person for whose acts the corporation or
223	223	partnership is legally liable in the conduct of its business under
224	224	this code;
225	225	(4) if engaged in the business of insurance, the
226	226	corporation or partnership intends to be actively engaged in that
227	227	business as required under Section 4001.104(a);
228	228	(5) [each location from which the corporation or
229	229	partnership will engage in business in this state under authority
230	230	of a license issued by the department is registered separately with
231	231	the department;
232	232	[(6)] the corporation or partnership has submitted the
233	233	application, appropriate fees, and any other information required
234	234	by the department; and
235	235	(6) [(7)] an officer, director, member, manager,
236	236	partner, or other person who has the right or ability to control the
237	237	corporation or partnership has not:
238	238	(A) had a license suspended or revoked or been
239	239	the subject of any other disciplinary action by a financial or
240	240	insurance regulator of this state, another state, or the United
241	241	States; or
242	242	(B) committed an act for which a license may be
243	243	denied under Subchapter C, Chapter 4005.
244	244	SECTION 11. Section 4001.153, Insurance Code, is amended to
245	245	read as follows:
246	246	Sec. 4001.153. APPLICATION FOR AND ISSUANCE OF TEMPORARY
247	247	LICENSE. (a) Except as provided by Subsection (b), the [The]
248	248	department shall issue a temporary license immediately on receipt
249	249	of a properly completed application executed by the applicant in
250	250	the form required by Section 4001.102 and accompanied by:
251	251	(1) the nonrefundable filing fee set by the
252	252	department; and
253	253	(2) a certificate signed by an officer or properly
254	254	authorized representative of an agent, insurer, or health
255	255	maintenance organization stating that:
256	256	(A) the applicant is being considered for
257	257	appointment by the agent, insurer, or health maintenance
258	258	organization as its full-time agent;
259	259	(B) the agent, insurer, or health maintenance
260	260	organization desires that the applicant be issued a temporary
261	261	license; and
262	262	(C) the applicant will complete training as
263	263	prescribed by Section 4001.160 under the agent's, insurer's, or
264	264	health maintenance organization's supervision.
265	265	(b) The department may deny a license application under this
266	266	subchapter if the department determines that any of the grounds
267	267	exist for license denial or disciplinary action under Section
268	268	4005.101 of this code or Chapter 53, Occupations Code.
269	269	SECTION 12. Section 4001.155, Insurance Code, is amended to
270	270	read as follows:
271	271	Sec. 4001.155. TERM OF TEMPORARY LICENSE. A temporary
272	272	license is valid for 180 [90] days after the date of issuance.
273	273	SECTION 13. Section 4001.352, Insurance Code, is amended to
274	274	read as follows:
275	275	Sec. 4001.352. AUTHORITY TO ISSUE PROVISIONAL PERMIT.
276	276	(a) The department may, in conjunction with a license application
277	277	under Section 4001.102, issue a provisional permit to an applicant
278	278	who is being considered for appointment as an agent by another
279	279	agent, an insurer, or a health maintenance organization.
280	280	(b) The department may not issue a provisional permit under
281	281	this subchapter unless the department's average license processing
282	282	time exceeds 30 days.
283	283	SECTION 14. Section 4002.003(a), Insurance Code, is amended
284	284	to read as follows:
285	285	(a) The department may not require a person to take an
286	286	examination under this chapter if the person is:
287	287	(1) an applicant for the renewal of an unexpired
288	288	license issued by the department;
289	289	(2) an applicant whose license issued by the
290	290	department expired less than one year before the date of the
291	291	application, if the previous license was not denied, revoked, or
292	292	suspended by the commissioner;
293	293	(3) a partnership, corporation, or depository
294	294	institution;
295	295	(4) an applicant for a life, accident, and health
296	296	license who is designated as a chartered life underwriter (CLU);
297	297	(5) [an applicant for a life and health insurance
298	298	counselor license who is designated as a chartered life underwriter
299	299	(CLU), chartered financial consultant (ChFC), or certified
300	300	financial planner (CFP);
301	301	[(6)] an applicant for a property and casualty license
302	302	who is designated as a chartered property casualty underwriter
303	303	(CPCU);
304	304	(6) [(7)] an applicant for a specialty license issued
305	305	under Chapter 4055;
306	306	(7) [(8)] a nonresident individual who is exempt from
307	307	the examination requirement under Chapter 4056; or
308	308	(8) [(9)] an applicant for a general life, accident,
309	309	and health license or a life agent license who was authorized to
310	310	solicit or procure insurance on behalf of a fraternal benefit
311	311	society on September 1, 1999, if the applicant:
312	312	(A) solicited or procured insurance on behalf of
313	313	the fraternal benefit society for at least 24 months preceding
314	314	September 1, 1999; and
315	315	(B) does not, on or after September 1, 1999,
316	316	solicit or procure:
317	317	(i) insurance for any other insurer or a
318	318	different fraternal benefit society;
319	319	(ii) an insurance contract from anyone
320	320	other than a person who is eligible for membership in the fraternal
321	321	benefit society; or
322	322	(iii) an interest-sensitive life insurance
323	323	contract that exceeds $35,000 of coverage on an individual life,
324	324	unless the applicant is designated as a "Fraternal Insurance
325	325	Counselor" at the time the contract is solicited or procured.
326	326	SECTION 15. Section 4004.053(a), Insurance Code, is amended
327	327	to read as follows:
328	328	(a) An individual who holds a general life, accident, and
329	329	health license, a life agent license, [a life and health insurance
330	330	counselor license,] an adjuster license, a managing general agent
331	331	license, a general property and casualty license, or a personal
332	332	lines property and casualty license must complete 24 hours of
333	333	continuing education during the license period. If the individual
334	334	holds more than one license for which continuing education is
335	335	otherwise required, the individual is not required to complete more
336	336	than 24 continuing education hours for all licenses during the
337	337	license period. An individual who is required under rules adopted
338	338	under Chapter 4008 to hold a certificate to sell a designated
339	339	product or product line may use continuing education programs
340	340	administered under Section 4004.151 to satisfy the continuing
341	341	education requirements under this subsection.
342	342	SECTION 16. Section 4004.054, Insurance Code, is amended to
343	343	read as follows:
344	344	Sec. 4004.054. ETHICS REQUIREMENT. Each individual who
345	345	holds a license issued by the department shall complete three [two]
346	346	hours of continuing education in ethics during each license renewal
347	347	period.
348	348	SECTION 17. Section 4051.051(a), Insurance Code, is amended
349	349	to read as follows:
350	350	(a) A person is required to hold a general property and
351	351	casualty license if the person acts as:
352	352	(1) an agent who writes property and casualty
353	353	insurance for an insurer authorized to engage in the business of
354	354	property and casualty insurance in this state; or
355	355	(2) [a subagent of a person who holds a license as an
356	356	agent under this chapter who solicits and binds insurance risks for
357	357	that agent; or
358	358	[(3)] an agent who writes any other kind of insurance
359	359	as required by the commissioner for the protection of the insurance
360	360	consumers of this state.
361	361	SECTION 18. Section 4051.401, Insurance Code, is amended to
362	362	read as follows:
363	363	Sec. 4051.401. PERSONAL LINES PROPERTY AND CASUALTY
364	364	LICENSE; LICENSE REQUIRED. A person is required to hold a personal
365	365	lines property and casualty license if the person acts as[:
366	366	[(1)] an agent who writes property and casualty
367	367	insurance sold to individuals and families primarily for personal
368	368	or household use for an insurer authorized to engage in the business
369	369	of property and casualty insurance in this state[; or
370	370	[(2) a subagent of a person who holds a license as an
371	371	agent under this subchapter who solicits and binds insurance risks
372	372	for that agent].
373	373	SECTION 19. Section 4056.052, Insurance Code, is amended by
374	374	adding Subsection (c) to read as follows:
375	375	(c) A license issued under this section shall be
376	376	automatically suspended, canceled, or revoked if the licensee's
377	377	home state suspends, cancels, or revokes the licensee's
378	378	corresponding resident license.
379	379	SECTION 20. Section 4056.059(b), Insurance Code, is amended
380	380	to read as follows:
381	381	(b) A nonresident agent may apply to the department for a
382	382	comparable license for residents of this state. An application
383	383	must include:
384	384	(1) a notification of the agent's change of address and
385	385	contact information; and
386	386	(2) [a clearance letter from the state authority of
387	387	the state that issued the agent's prior resident license
388	388	demonstrating the agent's good standing with that authority; and
389	389	[(3)] fingerprint forms in the format prescribed by
390	390	the department, which may be electronic.
391	391	SECTION 21. Section 4101.002(b), Insurance Code, is amended
392	392	to read as follows:
393	393	(b) A nonresident adjuster who is also an employee of an
394	394	insurer that is licensed in this state is not required to hold a
395	395	license under this chapter to:
396	396	(1) adjust a single loss in this state;
397	397	(2) adjust losses arising out of a catastrophe common
398	398	to all those losses; or
399	399	(3) act as a temporary substitute for a licensed
400	400	adjuster.
401	401	SECTION 22. Section 4102.054(a), Insurance Code, is amended
402	402	to read as follows:
403	403	(a) The commissioner may issue a nonresident license to an
404	404	applicant for a public insurance adjuster license who is not a
405	405	permanent resident of this state on determining that the
406	406	application meets the requirements of this chapter, the nonresident
407	407	license application fee has been paid, and the applicant is an
408	408	individual who:
409	409	(1) is at least 18 years of age;
410	410	(2) except as provided by Section 4102.058, has
411	411	passed, to the satisfaction of the commissioner, an examination
412	412	approved by the commissioner and of sufficient scope as prescribed
413	413	by Section 4102.057;
414	414	(3) is self-employed as a public insurance adjuster or
415	415	associated with or employed by a public insurance adjusting firm or
416	416	other public insurance adjuster;
417	417	(4) is trustworthy and of a moral character that
418	418	reasonably ensures that the applicant will conduct the business of
419	419	a public insurance adjuster fairly and in good faith without
420	420	detriment to the public;
421	421	(5) has never been convicted of a felony or, if
422	422	convicted of a felony, has received a full pardon from that
423	423	conviction and is otherwise relieved from any disabilities
424	424	connected with that conviction;
425	425	(6) has sufficient experience or training relating to
426	426	the assessment of:
427	427	(A) real and personal property values; and
428	428	(B) physical loss of or damage to real or
429	429	personal property that may be the subject of insurance and claims
430	430	under insurance;
431	431	(7) is sufficiently informed as to the terms and
432	432	effects of the types of insurance contracts that provide coverage
433	433	on real and personal property;
434	434	(8) possesses knowledge and experience adequate to
435	435	enable the applicant to engage in the business of a public insurance
436	436	adjuster fairly and without injury to the public or any member of
437	437	the public with whom the applicant may have business as a public
438	438	insurance adjuster;
439	439	(9) [if currently licensed as a resident public
440	440	insurance adjuster in the applicant's state of residence, provides
441	441	with the application a certificate or letter of authorization from
442	442	the licensing authority of the applicant's state of residence that:
443	443	[(A) states that the applicant holds a current or
444	444	comparable license to act as a public insurance adjuster; and
445	445	[(B) meets the requirements of Subsection (b);
446	446	[(10) if the applicant's state of residence does not
447	447	require licensure as a resident public insurance adjuster and the
448	448	applicant has been licensed as an adjuster, agent, broker, or other
449	449	insurance representative in the applicant's state of residence or
450	450	any other state within the past three years, provides with the
451	451	application a certificate or letter of authorization from the
452	452	licensing authority that:
453	453	[(A) states that the applicant holds or has held
454	454	a license to act as an adjuster, agent, broker, or other insurance
455	455	representative; and
456	456	[(B) meets the requirements of Subsection (c);
457	457	[(11)] files proof of financial responsibility in
458	458	accordance with Section 4102.105; and
459	459	(10) [(12)] complies with any other requirements
460	460	under applicable state law, including provision of a complete set
461	461	of fingerprints on request, as provided by Section 4001.103.
462	462	SECTION 23. Section 4102.104, Insurance Code, is amended by
463	463	amending Subsection (a) and adding Subsections (a-1) and (a-2) to
464	464	read as follows:
465	465	(a) For purposes of this section, "contract" means the
466	466	contract between the insured and the public insurance adjuster.
467	467	(a-1) The total commission that a public insurance adjuster
468	468	may receive includes expenses, direct costs, or any other costs
469	469	accrued by the public insurance adjuster from the date the insured
470	470	signed the contract to the date the insured receives final payment
471	471	on the claim.
472	472	(a-2) Except as provided by Subsection (b), the [a license
473	473	holder may receive a commission for service provided under this
474	474	chapter consisting of an hourly fee, a flat rate, a percentage of
475	475	the total amount paid by an insurer to resolve a claim, or another
476	476	method of compensation. The] total commission received may not
477	477	exceed:
478	478	(1) 10 percent of the total amount paid by the insurer
479	479	to settle a claim, if the insured signed the contract before the
480	480	insurer paid or offered to pay any amount to settle the claim; or
481	481	(2) 10 percent of the amount equal to the total amount
482	482	paid by the insurer to settle the claim minus the amount of any open
483	483	offer before the insured signed the contract minus any payments
484	484	initiated or made before the insured signed the contract, if the
485	485	insured signed the contract after the insurer paid or offered to pay
486	486	any amount to settle [insurance settlement on] the claim.
487	487	SECTION 24. The following provisions of the Insurance Code
488	488	are repealed:
489	489	(1) Section 4001.003(9);
490	490	(2) Sections 4001.009 and 4001.109;
491	491	(3) Section 4001.156(a);
492	492	(4) Section 4001.205;
493	493	(5) Subchapters D and G, Chapter 4051;
494	494	(6) Chapter 4052;
495	495	(7) Section 4056.004;
496	496	(8) Sections 4102.054(b) and (c); and
497	497	(9) Section 4102.114(d).
498	498	SECTION 25. (a) In this section, "department" means the
499	499	Texas Department of Insurance.
500	500	(b) On the effective date of this Act, the department shall
501	501	convert all active insurance services representative licenses
502	502	issued before January 1, 2021, to general property and casualty
503	503	insurance agent licenses. Licensees must comply with all
504	504	requirements of the converted license to keep the license active
505	505	and in good standing. Any insurance services representative
506	506	licenses issued on or after January 1, 2021, through the effective
507	507	date of this Act may not be renewed on expiration of the license and
508	508	may not convert to another license type.
509	509	(c) On the effective date of this Act, the department shall
510	510	convert all active life and health insurance counselor licenses
511	511	issued before January 1, 2021, to general life and health agent
512	512	licenses. Converted licensees must comply with all requirements of
513	513	the converted license to keep the license active and in good
514	514	standing. Any life and health insurance counselor licenses issued
515	515	on or after January 1, 2021, through the effective date of this Act
516	516	may not be renewed on expiration of the license and may not convert
517	517	to another license type.
518	518	(d) On the effective date of this Act, any existing home
519	519	office salaried employee registration is void and ceases to exist.
520	520	Any former home office salaried employee registrant engaging in the
521	521	business of insurance after the effective date of this Act must
522	522	follow the requirements of the Insurance Code and any other
523	523	applicable laws of this state.
524	524	SECTION 26. This Act takes effect September 1, 2021.