Bill Text: TX SB844 | 2015-2016 | 84th Legislature | Comm Sub

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

Sponsorship: Partisan Bill (Republican 3)

Status: (Engrossed - Dead) 2015-05-26 - Postponed [SB844 Detail]

Download: Texas-2015-SB844-Comm_Sub.html

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By: Taylor of Collin, et al. S.B. No. 844
(Meyer)

A BILL TO BE ENTITLED
AN ACT
relating to the expiration of 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. 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 5. 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,
rules adopted by the commissioner, and [or] any applicable
provision of this code or another insurance law of this state.
SECTION 6. 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 7. 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 commissioner issues an order revoking the
license.
SECTION 8. 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
(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) 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 9. (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 birthday in the year
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 Texas Department of Insurance 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. 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.
SECTION 10. This Act takes effect January 1, 2016.