Bill Text: TX HB2503 | 2011-2012 | 82nd Legislature | Enrolled

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Bill Title: Relating to insurance agent licenses issued to certain foreign corporations and partnerships.

Sponsorship: Partisan Bill (Republican 2)

Status: (Passed) 2011-05-28 - Effective on 9/1/11 [HB2503 Detail]

Download: Texas-2011-HB2503-Enrolled.html

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H.B. No. 2503

AN ACT
relating to insurance agent licenses issued to certain foreign
corporations and partnerships.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4001.106(b), Insurance Code, is amended
to read as follows:
(b) The department shall issue a license to a corporation or
partnership if the department determines that:
(1) the corporation or partnership is:
(A) organized under the laws of this state or
another state; and
(B) [admitted to engage in business in this state
by the secretary of state, if required; and
[(C)] authorized by its articles of
incorporation or its partnership agreement to act as an agent;
(2) at least one officer of the corporation or one
active partner of the partnership and all other persons performing
any acts of an agent on behalf of the corporation or partnership in
this state are individually licensed by the department separately
from the corporation or partnership;
(3) the corporation or partnership will have the
ability to pay any amount up to $25,000 that it might become legally
obligated to pay under a claim made against it by a customer and
caused by a negligent act, error, or omission of the corporation or
partnership or a person for whose acts the corporation or
partnership is legally liable in the conduct of its business under
this code;
(4) if engaged in the business of insurance, the
corporation or partnership intends to be actively engaged in that
business as required under Section 4001.104(a);
(5) each location from which the corporation or
partnership will engage in business in this state under authority
of a license issued by the department is registered separately with
the department;
(6) the corporation or partnership has submitted the
application, appropriate fees, and any other information required
by the department; and
(7) an officer, director, member, manager, partner, or
other person who has the right or ability to control the corporation
or partnership has not:
(A) had a license suspended or revoked or been
the subject of any other disciplinary action by a financial or
insurance regulator of this state, another state, or the United
States; or
(B) committed an act for which a license may be
denied under Subchapter C, Chapter 4005.
SECTION 2. This Act applies only to a license application
filed on or after the effective date of this Act. A license
application filed before the effective date of this Act is governed
by the law in effect on the date the application was filed, and that
law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2503 was passed by the House on April
7, 2011, by the following vote: Yeas 144, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2503 was passed by the Senate on May
12, 2011, by the following vote: Yeas 31, Nays 0
.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor