Source: http://www.tdi.texas.gov/rules/2005/1229C-059.html
Timestamp: 2018-04-20 02:45:45
Document Index: 358290657

Matched Legal Cases: ['§19', '§19', '§19', '§19', '§19', '§19', '§19', '§19', '§19', '§19', '§19', '§207']

28 TAC §§19.1011, 19.1020 and 19.1021
1. INTRODUCTION. The Commissioner of Insurance adopts amendments to §19.1011 and new §19.1020, concerning continuing education credit for licensees who are active members of state and national insurance associations, and new §19.1021, concerning national flood insurance education training. The amendments and new sections are adopted with changes to correct formatting in the proposed text published in the November 11, 2005 issue of the Texas Register (30 TexReg 7357).
2. REASONED JUSTIFICATION These amendments and new sections are necessary to implement the continuing education credits for agents who are active members of state and national insurance associations as directed by SB 265 enacted by the 79th Legislature, Regular Session; to authorize similar continuing education credits for life and health insurance counselors, insurance adjusters and public insurance adjusters; and to establish certified course requirements for course providers offering minimum flood insurance training under the federal Flood Insurance Reform Act of 2004.
Under SB 265, the Commissioner is authorized to adopt rules allowing the department to grant not more than four hours of continuing education credit to an agent who is an active member of a state or national insurance association. As required by SB 265, this adoption specifies acceptable state and national insurance associations, the number of hours of credit that agents who are active members of such associations may obtain for certain activities, and the procedure for agent members to claim credit for completing these activities. This adoption also authorizes the same continuing education credit for holders of national designation certifications. Additionally, this adoption authorizes the same continuing education credit for life and health insurance counselors, insurance adjusters, and public insurance adjusters pursuant to authority granted to the Commissioner in the applicable statutes related to continuing education for those license types.
This adoption also establishes the criteria for certified courses that course providers may develop to comply with the minimum training and education requirements established by the Federal Emergency Management Agency (FEMA) to implement the Flood Insurance Reform Act of 2004 for insurance agents who sell Standard Flood Insurance Policies issued through the National Flood Insurance Program. Additionally, the numbering in §19.1021(g)(7) was revised to the required format.
3. HOW THE SECTIONS WILL FUNCTION. Amendments to §19.1011 specify the information that state or national insurance association members or national designation certification holders are required to submit to claim credit for the continuing education hours authorized in this adoption and the procedure for claiming those continuing education credit hours. Section 19.1020 describes the associations that qualify as a state or national insurance association for the purposes of continuing education credit under SB 265, the activities for which this credit may be claimed, and the maximum number of credit hours that may be claimed. Section 19.1021 establishes the criteria for certified courses that course providers may develop for persons who intend to write or insurance agents who currently write flood insurance to comply with FEMA's minimum training and education requirements implementing the Flood Insurance Reform Act of 2004.
4. SUMMARY OF COMMENTS. The department received no comments on the proposed amended or new sections.
5. STATUTORY AUTHORITY. The amendments and new sections are adopted under the Insurance Code Chapters 4001, 4004, 4052, 4101, and 4102. Section 4004.101 authorizes the commissioner to adopt rules establishing the criteria for continuing education courses for license holders. Section 4004.0535 authorizes the commissioner by rule to allow the department to grant not more than four hours of continuing education credit to an agent who is an active member of a state or national insurance association, to adopt rules specifying the types of associations that constitute state or national insurance associations, the reasonable requirements for active participation in the association, and the manner of providing this information to the department. Section 4052.003 provides that, except as provided in Chapter 4052, Life and Health Insurance Counselors are licensed and regulated in the same manner as agents. Section 4101.059 authorizes the commissioner to certify a continuing education program for insurance adjusters. Section 4102.109 authorizes the commissioner to prescribe continuing education course requirements for public insurance adjusters. Section 36.001 provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.
(1) The final examination or interactive inquiries must reasonably evaluate the student's understanding of the course content. At least 70% of the examination questions or interactive inquiries must be based at the application level. The remainder of the questions may be based at the knowledge level;
(3) Providers shall maintain a record of each student's final examination in the student's record for four years;
(f) Notwithstanding subsections (a) - (e) of this section, licensees must claim continuing education under §19.1020 of this chapter (relating to State and National Association Credit) by sending to the department, or its designee, upon request, an affirmation acceptable to the department containing:
(1) the licensee's name, address, telephone number, and licensee's department license number;
(2) the name of the national designation or state or national insurance association providing educational materials or sponsoring educational presentations;
(3) the cumulative number of hours of credit claimed for reviewing the educational materials;
(4) the cumulative number of hours of credit claimed for attending the educational presentations;
(5) a statement that the licensee currently holds the national designation or is a member in good standing of the state or national insurance association; and
(6) A statement that the licensee completed at least the number of hours in these activities the licensee is claiming for continuing education credit.
(g) In addition to the affirmation provided under subsection (f) of this section, the department may request a licensee claiming hours under §19.1020 of this chapter to submit a sworn written affirmation to the department confirming under oath the information in subsection (f) of this section. Failure to submit a sworn affirmation will result in denial of the claimed hours and may result in disciplinary action under §19.1015 of this subchapter (relating to Failure to Comply) or the Insurance Code.
§19.1020. State and National Insurance Association Credit.
(1) Educational material--Printed or electronic materials with content intended to enhance the recipient's knowledge of insurance-related topics.
(2) Educational presentation--A live presentation allowing for questions or discussion given to a group of three or more licensees and that provides information intended to enhance the recipient's knowledge of insurance-related topics.
(3) State or national insurance association--A membership organization:
(A) organized as an association or corporation under state law;
(B) based on paid memberships renewable annually or biennially for an additional membership fee; and
(C) organized for the express purpose of promoting the interests of insurance licensees or a class of insurance licensees, including those classes based on license type or regional, gender, religious, or minority interests .
(b) Licensees who currently hold a national designation certification or are members in good standing of a state or national insurance association may receive up to four hours of self study continuing education credit per reporting period as follows:
(1) by accumulating up to two hours for reviewing educational materials provided by the national designation sponsor or state or national insurance association in which they hold a designation or are members; and
(2) by accumulating up to four hours for attending educational presentations sponsored by the national designation sponsor or state or national association in which they hold a designation or are members.
(c) A licensee may accumulate hours from different national designations or state or national insurance associations in which they hold a designation or membership to reach the four-hour limit, but regardless of the number of designations or association memberships or hours accumulated, the licensee may not claim more than four hours of credit under this section towards completing the licensee's continuing education requirement for any reporting period.
(d) Continuing education hours under this section shall apply only as self study credit and shall not count towards the licensee's ethics, classroom, or classroom equivalent continuing education requirements.
(e) A licensee claiming hours under this section may claim the actual time, up to an accumulated total of four hours, that the licensee needed to review the educational material or the duration of the educational presentation.
§19.1021. Flood Insurance Education Course.
(a) Pursuant to §207 of the Flood Insurance Reform Act of 2004, the Federal Emergency Management Agency on September 1, 2005 published minimum training and education standards for persons that intend to write or currently write flood insurance ( Federal Register, Vol. 70, No. 169, pp. 52117-52119). This section establishes these standards for a department-certified continuing education course.
(I ) Why Flood Insurance is Better than Disaster Assistance.
(7) Section VII - Requirements of the Flood Insurance Reform Act of 2004; Point of Sale and Renewal Responsibilities;