Bill Text: TX HB1947 | 2015-2016 | 84th Legislature | Comm Sub


Bill Title: Relating to licenses for insurance agents and adjusters.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Engrossed - Dead) 2015-05-27 - Placed on intent calendar [HB1947 Detail]

Download: Texas-2015-HB1947-Comm_Sub.html
 
 
  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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