Bill Text: TX HB2145 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to provisional authority for certain individual insurance license applicants to act as insurance agents; authorizing a fee; requiring an occupational provisional permit; adding provisions that may be subject to a criminal penalty.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Passed) 2015-06-10 - Effective on 9/1/15 [HB2145 Detail]
Download: Texas-2015-HB2145-Enrolled.html
H.B. No. 2145 |
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relating to provisional authority for certain individual insurance | ||
license applicants to act as insurance agents; authorizing a fee; | ||
requiring an occupational provisional permit; adding provisions | ||
that may be subject to a criminal penalty. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 4001, Insurance Code, is amended by | ||
adding Subchapter H to read as follows: | ||
SUBCHAPTER H. PROVISIONAL PERMIT | ||
Sec. 4001.351. APPLICABILITY. This subchapter applies only | ||
to an applicant for a license as an agent under: | ||
(1) Subchapters B and E, Chapter 4051; and | ||
(2) Subchapters B, D, and E, Chapter 4054. | ||
Sec. 4001.352. AUTHORITY TO ISSUE PROVISIONAL PERMIT. The | ||
department may, in conjunction with a license application under | ||
Section 4001.102, issue a provisional permit to an applicant who is | ||
being considered for appointment as an agent by another agent, an | ||
insurer, or a health maintenance organization. | ||
Sec. 4001.353. APPLICATION FOR AND ISSUANCE OF PROVISIONAL | ||
PERMIT. (a) The department may issue a provisional permit under | ||
this subchapter on receipt of: | ||
(1) a written application for a provisional permit; | ||
(2) a properly completed license application, | ||
nonrefundable fee, and each other item required for a license under | ||
this chapter and Subchapter B or E, Chapter 4051, or Subchapter B, | ||
D, or E, Chapter 4054, as applicable; | ||
(3) the nonrefundable fee in an amount authorized by | ||
Subsection (c); and | ||
(4) a certificate signed by the appointing agent, | ||
insurer, or health maintenance organization stating that: | ||
(A) the applicant completed the training, if any, | ||
and passed the examination required for the issuance of the license | ||
for which the application is submitted; | ||
(B) the appointing agent, insurer, or health | ||
maintenance organization completed a background check on the | ||
applicant that shows that the applicant has not been convicted of: | ||
(i) a felony; or | ||
(ii) an act that requires the applicant to | ||
receive written consent under 18 U.S.C. Section 1033 to engage in | ||
the business of insurance; | ||
(C) the applicant has not responded | ||
affirmatively to any question on the license application that | ||
indicates the applicant has a criminal conviction or has been | ||
involved in an administrative action that may disqualify the | ||
applicant from receiving a license; and | ||
(D) the appointing agent, insurer, or health | ||
maintenance organization will supervise the work of the applicant. | ||
(b) An applicant is not qualified to receive a provisional | ||
permit if the applicant has not taken and passed the examination | ||
required for the issuance of the permanent license for which the | ||
applicant applied under Section 4001.102. | ||
(c) The nonrefundable fee described by Subsection (a) shall | ||
be set by the department in an amount that: | ||
(1) is reasonable and necessary to implement this | ||
subchapter; and | ||
(2) may not exceed the amount of the fee required for | ||
an application for a permanent license. | ||
Sec. 4001.354. AUTHORITY TO ACT AS AGENT UNDER PROVISIONAL | ||
PERMIT. (a) An applicant may proceed to act as an agent if: | ||
(1) a provisional permit is not received from the | ||
department before the eighth day after the date the application, | ||
nonrefundable fee, and other items required under Section | ||
4001.353(a) are delivered or mailed to the department; and | ||
(2) the applicant or appointing agent, insurer, or | ||
health maintenance organization has not been notified that the | ||
application for the permit is incomplete or is or may be denied. | ||
(b) An applicant may act as an agent only for the appointing | ||
agent, insurer, or health maintenance organization except that an | ||
appointing insurer may include appointments for one or more | ||
affiliated insurers that are part of the same insurance holding | ||
company group. | ||
Sec. 4001.355. TERM OF PROVISIONAL PERMIT. (a) Except as | ||
provided by Subsection (b), a provisional permit expires on the | ||
earlier of: | ||
(1) the 90th day after the date the permit is issued; | ||
or | ||
(2) the date a license is issued or the license | ||
application is denied. | ||
(b) If the license, or a notice that the license is denied, | ||
is not received from the department on or before the 90th day after | ||
the date the application, nonrefundable fee, and other items | ||
required under Section 4001.353(a) are delivered or mailed to the | ||
department, the authority of the applicant to act as an agent under | ||
this subchapter automatically extends until the earlier of the date | ||
the license is issued or the license application is denied or the | ||
90th day after the expiration of the 90-day period under Subsection | ||
(a). | ||
Sec. 4001.356. NOTIFICATION REGARDING LICENSE. (a) The | ||
department may notify the applicant or appointing agent, insurer, | ||
or health maintenance organization that the license application is | ||
incomplete or is or may be denied at any time before the issuance or | ||
denial of a license. | ||
(b) An applicant who receives a notice under Subsection (a) | ||
shall immediately cease acting as an agent under this subchapter. | ||
An appointing agent, insurer, or health maintenance organization | ||
that receives notice under Subsection (a) shall immediately notify | ||
the applicant of the notice. | ||
(c) An applicant acting as an agent under this subchapter | ||
before receiving a notice under Subsection (a), if applicable, is | ||
not engaged in the unauthorized business of insurance and any | ||
transaction entered into by the applicant before receiving the | ||
notice, if applicable, is presumed lawful. | ||
(d) A notification under this section applies only to a | ||
provisional permit, and the department shall continue to process an | ||
application for a license unless the license has been denied. | ||
Sec. 4001.357. DENIAL OR REVOCATION OF LICENSE. If the | ||
applicant's license application is denied or the applicant's | ||
license is revoked, an applicant is subject to Section 4005.105 | ||
with respect to an application for a provisional permit under this | ||
subchapter. | ||
Sec. 4001.358. COMPLIANCE WITH OTHER LAW. (a) A | ||
provisional permit holder who is acting under the authority of that | ||
permit is subject to all provisions of this code regulating the | ||
solicitation and sale of insurance that relate to the type of | ||
permanent license for which the provisional permit holder applied. | ||
(b) A provisional permit holder that applied for a life and | ||
annuity license must comply with Chapter 1114 with respect to the | ||
replacement of life insurance policies and annuities. | ||
(c) A person who holds a permanent license may not | ||
circumvent or attempt to circumvent the intent of this section by | ||
acting for or with a provisional permit holder. | ||
Sec. 4001.359. SUPERVISORY RESPONSIBILITY. An appointing | ||
agent, insurer, or health maintenance organization that allows a | ||
permit holder to act as an agent under a provisional permit has | ||
supervisory responsibility over the permit holder. | ||
SECTION 2. The change in law made by this Act applies only | ||
to an applicant who files a license application on or after the | ||
effective date of this Act. | ||
SECTION 3. This Act takes effect September 1, 2015. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 2145 was passed by the House on April | ||
16, 2015, by the following vote: Yeas 144, Nays 2, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 2145 on May 20, 2015, by the following vote: Yeas 142, Nays 0, | ||
2 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 2145 was passed by the Senate, with | ||
amendments, on May 18, 2015, by the following vote: Yeas 29, Nays | ||
1. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |