H.B. No. 2145

	AN ACT
	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