S.B. No. 876

	AN ACT
	relating to the licensing of insurance agents and adjusters;
	providing a penalty.
	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 4001.162, Insurance Code, is amended to
	read as follows:
	Sec. 4001.162.  RESTRICTION ON APPOINTMENT OF TEMPORARY
	LICENSE HOLDERS. (a)  Except as provided by Subsection (b), an
	[An] agent, insurer, or health maintenance organization may not
	appoint more than 500 temporary license holders during a calendar
	year.
	(b)  The commissioner shall adopt reasonable rules setting
	standards for an agent, insurer, or health maintenance organization
	to appoint more than 500 temporary license holders during a
	calendar year.  The standards must include consideration of the
	ability of an agent, insurer, or health maintenance organization to
	monitor appointed temporary agents.
	SECTION 3.  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 Subtitle 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 4.  Section 4003.006, Insurance Code, is amended to
	read as follows:
	Sec. 4003.006.  CONTINUATION OF ORIGINAL LICENSE. The
	original license of a person who has applied for license renewal in
	compliance with Section 4003.004 [4003. 004] remains in effect from
	the date the renewal application is filed until the date:
	(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 5.  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 6.  Section 4004.051(a), Insurance Code, is amended
	to read as follows:
	(a)  Except as provided by Section 4004.052 or other law,
	each individual who holds a license issued by the department shall
	complete, as a condition of licensure, continuing education as
	provided by this chapter.
	SECTION 7.  Section 4004.053(a), Insurance Code, is amended
	to read as follows:
	(a)  An individual who holds a general life, accident, and
	health license, a life agent license, a life and health insurance
	counselor license, an adjuster license, a managing general agent
	license, a general property and casualty license, or a personal
	lines property and casualty license must complete 24 [15] hours of
	continuing education during the license period [annually].  If the
	individual holds more than one license for which continuing
	education is otherwise required, the individual is not required to
	complete more than 24 [15] continuing education hours for all
	licenses during the license period [annually].  An individual who
	is required under rules adopted under Chapter 4008 to hold a
	certificate to sell a designated product or product line may use
	continuing education programs administered under Section 4004.151
	to satisfy the [annual] continuing education requirements under
	this subsection.
	SECTION 8.  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 9.  Section 4004.101(a), Insurance Code, is amended
	to read as follows:
	(a)  The department shall certify continuing education
	programs for agents and adjusters.  The certification criteria must
	be designed to ensure that continuing education programs enhance
	the knowledge, understanding, and professional competence of the
	license holder.
	SECTION 10.  Subchapter C, Chapter 4004, Insurance Code, is
	amended by adding Section 4004.105 to read as follows:
	Sec. 4004.105.  ADJUSTER CONTINUING EDUCATION PROGRAM
	CONTENTS. A continuing education program for adjusters licensed
	under Chapter 4101 must include education relating to:
	(1)  Chapter 541;
	(2)  Chapter 547;
	(3)  Subchapter A, Chapter 542;
	(4)  Subchapter E, Chapter 17, Business & Commerce
	Code; and
	(5)  any other similar laws specified by the
	department.
	SECTION 11.  Section 4005.105(d), Insurance Code, is amended
	to read as follows:
	(d)  Subsections (b) and [Subsection] (c) do [does] not apply
	to an applicant whose license application was denied or revoked for
	failure by the applicant to:
	(1)  pass a required written examination; [or]
	(2)  complete continuing education or pay an applicable
	fine under Section 4004.055(a); or
	(3)  submit a properly completed license application.
	SECTION 12.  Section 4005.109(b), Insurance Code, is amended
	to read as follows:
	(b)  A violation for which a fine may be assessed under this
	section includes a failure to:
	(1)  obtain the total number of continuing education
	hours before the expiration [renewal] date of a license;
	(2)  timely report a change of address to the
	department; or
	(3)  notify the department of an administrative action
	against the agent by a financial or insurance regulator of another
	state or of the federal government.
	SECTION 13.  Subchapter B, Chapter 4056, Insurance Code, is
	amended by adding Section 4056.059 to read as follows:
	Sec. 4056.059.  TRANSITION TO RESIDENT AGENT LICENSE.
	(a)  This section applies only to an individual who is a
	nonresident agent licensed under Section 4056.052 and who has moved
	from the other state that licensed the individual to this state.
	(b)  A nonresident agent may apply to the department for a
	comparable license for residents of this state. An application
	must include:
	(1)  a notification of the agent's change of address and
	contact information;
	(2)  a clearance letter from the state authority of the
	state that issued the agent's prior resident license demonstrating
	the agent's good standing with that authority; and
	(3)  fingerprint forms in the format prescribed by the
	department, which may be electronic.
	(c)  If a nonresident agent submits a satisfactory
	application in accordance with Subsection (b), the department shall
	issue a comparable resident agent license to the agent and cancel
	the agent's nonresident agent license.
	SECTION 14.  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 15.  Section 4101.059(a), Insurance Code, is amended
	to read as follows:
	(a)  To renew a license under this chapter, a licensed
	adjuster must participate in a continuing education program under
	Chapter 4004 [relating to consumer protection].  [The program must
	include education relating to consumer protection laws, including:
	[(1)  Chapter 541;
	[(2)  Chapter 547;
	[(3)  Subchapter A, Chapter 542;
	[(4)     Subchapter E, Chapter 17, Business & Commerce
	Code; and
	[(5)     any other similar laws specified by the
	department.]
	SECTION 16.  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 Sections
	4003.001 and 4004.055, rules adopted by the commissioner, and [or]
	any applicable provision of this code or another insurance law of
	this state.
	SECTION 17.  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 18.  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, a
	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 19.  Section 4102.065, Insurance Code, is amended to
	read as follows:
	Sec. 4102.065.  RENEWAL OF EXPIRED LICENSE. (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.
	(c)  A person whose license has been expired for one year or
	more may not renew the license.  The person may obtain a new license
	by:
	(1)  submitting to reexamination, if examination is
	required for original issuance of the license;
	(2) [, and by] complying with the requirements and
	procedures for obtaining an original license; and
	(3)  if applicable, submitting evidence of completion
	of any outstanding continuing education requirement and payment of
	any associated fine related to the expired license.
	(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 20.  Section 4102.109(a), Insurance Code, is amended
	to read as follows:
	(a)  Each license holder must [annually] complete at least 24
	[15] hours of continuing education during the license period
	[courses].  The commissioner by rule shall prescribe the
	requirements for continuing education courses under this section.
	SECTION 21.  Section 4153.055, Insurance Code, is amended to
	read as follows:
	Sec. 4153.055.  EXEMPTIONS FROM EXAMINATION AND CONTINUING
	EDUCATION REQUIREMENT. (a) An applicant is not required to take an
	examination to obtain a risk manager's license if the applicant
	holds the designation of:
	(1)  chartered property casualty underwriter (CPCU)
	from the American Institute for Chartered Property Casualty
	Underwriters;
	(2)  certified insurance counselor (CIC) from the
	national Society of Certified Insurance Counselors; [or]
	(3)  associate in risk management (ARM) from the
	Insurance Institute of America; or
	(4)  Certified Risk Manager (CRM) from The National
	Alliance for Insurance Education & Research.
	(b)  A license holder who has held a designation described by
	Subsection (a)(2), (3), or (4) for a period of not less than 30
	years is exempt from continuing education requirements established
	under this title.
	SECTION 22.  (a)  Sections 4001.006, 4003.001, 4003.008,
	4101.057, 4101.061, 4102.062, 4102.064, and 4102.065, Insurance
	Code, as amended by this Act, apply 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 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 the amendments listed in Subsection (a) of
	this section and the provisions of this section do not change the
	continuing education requirements for a license issued or renewed
	on or after January 1, 2016. Except as otherwise provided by
	provisions of this Act other than this section and the amendments
	listed in Subsection (a) of this section, the continuing education
	requirements for a license issued or renewed before January 1,
	2016, are 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 23.  Sections 4004.053 and 4102.109, Insurance Code,
	as amended by this Act, apply only to continuing education
	requirements for a license issued or renewed on or after the
	effective date of this Act. Continuing education requirements for
	a license issued or renewed before the effective date of this Act
	are 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 24.  Section 4004.055, Insurance Code, as added by
	this Act, and Sections 4004.051, 4005.105, and 4005.109, Insurance
	Code, as amended by this Act, apply 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 25.  Section 4056.059, Insurance Code, as added by
	this Act, applies only to a nonresident agent who relocates to this
	state on or after the effective date of this Act. An agent who
	relocates to this state before the effective date of this Act is
	governed by the law as it existed immediately before that date, and
	that law is continued in effect for that purpose.
	SECTION 26.  This Act takes effect September 1, 2015.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 876 passed the Senate on
	April 9, 2015, by the following vote: Yeas 31, Nays 0; and that
	the Senate concurred in House amendment on May 28, 2015, by the
	following vote: Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 876 passed the House, with
	amendment, on May 19, 2015, by the following vote: Yeas 143,
	Nays 1, two present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor