reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter B. Prompt Payment of Construction Payment Bonds › Section 3503.057. Rules

Sec. 3503.057.  RULES.  The commissioner may adopt rules enforcing this subchapter in cases in which a surety company violates this subchapter as a general business practice.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter C. Other Bonds › Section 3503.101. Bail Bond Certificates

Sec. 3503.101.  BAIL BOND CERTIFICATES.  (a)  In any year, an insurance company authorized to engage in fidelity and surety insurance business in this state may become surety in an amount not to exceed $200 with respect to each bail bond certificate issued in that year by:
(1)  an automobile club authorized to transact business in this state; or
(2)  a truck and bus association incorporated in this state.
(b)  The bail bond certificate must be a printed card or other certificate that:
(1)  is issued by:
(A)  an automobile club authorized to transact business within this state; or
(B)  a truck and bus association incorporated in this state;
(2)  is issued to a member of the club or association and signed by the member of the club or association; and
(3)  contains a printed statement that:
(A)  a fidelity and surety company authorized to engage in business in this state guarantees the appearance of the member whose signature appears on the card or certificate; and
(B)  if the member fails to appear in court at the time of trial, the fidelity and surety company will pay any fine or forfeiture imposed on the member in an amount not to exceed $200.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter D. Suit on Certain Bonds or Other Obligations › Section 3503.151. Venue of Suit on Certain Bonds or Other Obligations

Sec. 3503.151.  VENUE OF SUIT ON CERTAIN BONDS OR OTHER OBLIGATIONS.  (a)  This section applies to:
(1)  a bond or other obligation of an insurance company authorized to engage in business in this state and to act as surety and guarantor of the fidelity of employees, trustees, executors, administrators, guardians, or others appointed to, or assuming the performance of, any public or private trust under appointment of a court or tribunal, or under contract between private individuals or corporations; or
(2)  a bond that may be required:
(A)  to be filed in a judicial proceeding;
(B)  to guarantee a contract or undertaking between:
(i)  individuals;
(ii)  private corporations;
(iii)  individuals and corporations; or
(iv)  individuals or private corporations and the state, a municipal corporation, or a county; or
(C)  of a state, county, municipal, or district official, including a school district official.
(b)  A proper court in the county in which a bond or other obligation described by Subsection (a) is filed has jurisdiction of a suit instituted on the bond or obligation.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter D. Suit on Certain Bonds or Other Obligations › Section 3503.152. Residence of Insurance Company

Sec. 3503.152.  RESIDENCE OF INSURANCE COMPANY.  An insurance company described by Section 3503.151 is a resident of a county in which the company engages in business.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter D. Suit on Certain Bonds or Other Obligations › Section 3503.153. Service of Process

Sec. 3503.153.  SERVICE OF PROCESS.  In a suit described by Section 3503.151, process shall be served in accordance with Sections 804.003, 804.101, 804.102, 804.103, 804.201, 804.202, 804.203(a), (c), and (d), and 804.204, as applicable.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter D. Suit on Certain Bonds or Other Obligations › Section 3503.154. Acceptance of Subchapter

Sec. 3503.154.  ACCEPTANCE OF SUBCHAPTER.  The doing or performance of any business in any county is considered an acceptance of the provisions of this subchapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter E. Regulation of Surety Company › Section 3503.201. Merger or Consolidation of Certain Companies

Sec. 3503.201.  MERGER OR CONSOLIDATION OF CERTAIN COMPANIES.  When two or more companies authorized to write fidelity, guaranty, and surety insurance in this state merge or consolidate and, incident to the merger or consolidation, enter into a total reinsurance contract under which the merged or ceding company is dissolved and that company's assets are acquired and liabilities are assumed by the new or surviving company, the commissioner, on finding that the contracting companies have on deposit with the comptroller two or more deposits made for the same or similar purposes under former Article 7.03, repealed by Chapter 388, Acts of the 55th Legislature, Regular Session, 1957, or under Section 861.252, shall authorize the comptroller to:
(1)  retain for a single purpose only the deposit of the greatest amount and value; and
(2)  permit the new or surviving company, on proper showing that there is duplication of deposits and that the new or surviving company is the owner of those deposits, to withdraw a duplicate or excessive deposit.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter E. Regulation of Surety Company › Section 3503.202. Unearned Premium Reserve for Bail Bond Not Required

Sec. 3503.202.  UNEARNED PREMIUM RESERVE FOR BAIL BOND NOT REQUIRED.  A surety company is not required to maintain an unearned premium reserve for a bail bond, as defined by Section 1704.001, Occupations Code, executed or delivered by the company.
Added by Acts 2013, 83rd Leg., R.S., Ch. 896 (H.B. 1047), Sec. 2, eff. September 1, 2013.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter E. Regulation of Surety Company › Section 3503.203. Direct Written Premium Calculation

Sec. 3503.203.  DIRECT WRITTEN PREMIUM CALCULATION.  Direct written premium reported by a surety company in a financial statement filed with the department may be calculated excluding any premiums or service fees retained by a bail bond surety licensed under Chapter 1704, Occupations Code, or by a property and casualty agent in connection with the execution or delivery of a bail bond as defined by Section 1704.001, Occupations Code.
Added by Acts 2013, 83rd Leg., R.S., Ch. 896 (H.B. 1047), Sec. 2, eff. September 1, 2013.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3503 - Surety Bonds and Related Instruments › Subchapter E. Regulation of Surety Company › Section 3503.204. Disclosure Requirements

Sec. 3503.204.  DISCLOSURE REQUIREMENTS.  A surety company that executes or delivers in this state a bail bond as defined by Section 1704.001, Occupations Code, shall disclose in the company's financial statement filed with the department the aggregate amount of:
(1)  gross premium for bail bond business reported in the company's surety line of business;
(2)  premium or service fees retained by the bail bond surety or agent; and
(3)  premium for bail bond business received by the company, net of amounts retained by the bail bond surety or agent.
Added by Acts 2013, 83rd Leg., R.S., Ch. 896 (H.B. 1047), Sec. 2, eff. September 1, 2013.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3504 - Travel Insurance › Section 3504.0002. Applicability

Sec. 3504.0002.  APPLICABILITY.  (a)  This chapter applies to a travel insurance policy or certificate that:
(1)  provides coverage to a resident of this state or is sold, solicited, negotiated, or offered in this state; and
(2)  is delivered or issued for delivery in this state.
(b)  This chapter does not apply to a cancellation fee waiver or travel assistance service except as expressly provided in this chapter.
Added by Acts 2019, 86th Leg., R.S., Ch. 1000 (H.B. 2587), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3504 - Travel Insurance › Section 3504.0003. Line of Insurance

Sec. 3504.0003.  LINE OF INSURANCE.  (a)  Except as provided by Subsection (b) and notwithstanding any other provision of this code, travel insurance is classified and filed for purposes of rates and forms under an inland marine line of insurance.
(b)  Travel insurance that provides coverage for sickness, accident, disability, or death occurring during travel, exclusively or in conjunction with related coverage for emergency evacuation, repatriation of remains, or incidental limited property and casualty benefits, including baggage or trip cancellation, may be filed by an authorized insurer under an accident and health line of insurance or an inland marine line of insurance.
(c)  Eligibility and underwriting standards for travel insurance may be developed and provided based on travel protection plans designed for individual or identified marketing or distribution channels if the standards meet underwriting standards for an inland marine line of insurance.
Added by Acts 2019, 86th Leg., R.S., Ch. 1000 (H.B. 2587), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3504 - Travel Insurance › Section 3504.0004. Premium Tax

Sec. 3504.0004.  PREMIUM TAX.  (a)  A travel insurer shall pay premium tax, as provided by Section 221.002, on travel insurance premiums paid by any of the following:
(1)  an individual primary policyholder who is a resident of this state;
(2)  a primary certificate holder who is a resident of this state and elects and purchases coverage under a group travel insurance policy; or
(3)  a blanket travel insurance policyholder who buys a blanket travel insurance policy for members of an eligible group if:
(A)  the policyholder is a resident of this state; or
(B)  the policyholder's principal place of business is located in this state.
(b)  A travel insurer shall:
(1)  document the state of residence or principal place of business of the policyholder or certificate holder described by Subsection (a); and
(2)  report as premium:
(A)  only the amount allocable to travel insurance and not amounts received for travel assistance services or cancellation fee waivers; and
(B)  only the amount allocable to residents of this state.
(c)  Amounts received for travel assistance services and cancellation fee waivers, whether the travel assistance services and cancellation waivers are offered separately or for a combined price authorized by Section 3504.0005, are not subject to taxation under Section 221.002(b).
Added by Acts 2019, 86th Leg., R.S., Ch. 1000 (H.B. 2587), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3504 - Travel Insurance › Section 3504.0005. Travel Protection Plans

Sec. 3504.0005.  TRAVEL PROTECTION PLANS.  A travel protection plan composed of multiple features may be offered for a combined price if:
(1)  at the time or before the consumer buys the travel protection plan it is clearly disclosed to the consumer that the plan includes travel insurance, travel assistance services, and cancellation fee waivers, as applicable, and provides information and an opportunity for the consumer to obtain additional information regarding the features and the pricing of each feature; and
(2)  the fulfillment materials:
(A)  describe the travel insurance, travel assistance services, and cancellation fee waivers in the travel protection plan; and
(B)  include the travel insurance disclosures and the contact information for persons providing travel assistance services and cancellation fee waivers, as applicable.
Added by Acts 2019, 86th Leg., R.S., Ch. 1000 (H.B. 2587), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3504 - Travel Insurance › Section 3504.0007. Rulemaking

Sec. 3504.0007.  RULEMAKING.  (a)  The commissioner may adopt rules necessary to implement this chapter.  Section 2001.0045, Government Code, does not apply to rules adopted under this section.
(b)  The comptroller, in consultation with the commissioner, may adopt rules to implement this chapter.
Added by Acts 2019, 86th Leg., R.S., Ch. 1000 (H.B. 2587), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter A. General Provisions › Section 4001.001. Purpose

Sec. 4001.001.  PURPOSE.  It is the intent of the legislature to:
(1)  simplify and reform the regulation of agents and other persons regulated under this title in this state by consolidating the kinds of licenses issued to those persons under this title;  and
(2)  promote uniformity in the licensing, examination, continuing education, and disciplinary requirements for those persons in this state and with other states.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter A. General Provisions › Section 4001.002. Applicability

Sec. 4001.002.  APPLICABILITY.
(a)  Except as otherwise provided by this code, this title applies to each person licensed under:
(1)  Subchapter H, Chapter 885;
(2)  Subchapter F, Chapter 911;
(3)  Section 912.251;
(4)  Subchapter E, Chapter 981;
(5)  Subchapter D, Chapter 1152;
(6)  Subchapter C or D of this chapter;
(7)  Subtitle B, C, or D of this title; or
(8)  Subsection (c), Article 5.13-1.
(a-1)  Except as otherwise provided by this code, this title applies to each individual who holds a specialty certification under Subchapter H, Chapter 4054.
(b)  This title does not apply to:
(1)  a resident of this state who arbitrates in the adjustment of losses between an insurer and an insured, a marine adjuster who adjusts particular or general average losses of vessels or cargoes if the adjuster paid an occupation tax of $200 for the year in which the adjustment is made, or a practicing attorney at law in this state, acting in the regular transaction of the person's business as an attorney at law, who is not a local agent and is not acting as an adjuster for an insurer;
(2)   an attorney in fact or the traveling salaried representative of a reciprocal or interinsurance exchange admitted to engage in the business of insurance in this state as to business transacted through the attorney in fact or salaried representative;
(3)  the attorney in fact for a Lloyd's plan;
(4)  the group motor vehicle insurance business or the group motor vehicle department of a company engaged in that business; or
(5)  a salaried employee who is not involved in soliciting or negotiating insurance in the office of an agent and who devotes the employee's full time to clerical and administrative services, including the incidental taking of information from customers and receipt of premiums in the office of an agent, if:
(A)  the employee does not receive any commissions; and
(B)  the employee's compensation is not varied by the volume of premiums taken and received.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2J.001, eff. April 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1338 (S.B. 79), Sec. 2, eff. September 1, 2009.
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 16, eff. September 1, 2019.
Acts 2021, 87th Leg., R.S., Ch. 355 (H.B. 4030), Sec. 7, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter A. General Provisions › Section 4001.004. Limited Liability Companies

Sec. 4001.004.  LIMITED LIABILITY COMPANIES.  The licensing and regulation of a limited liability company are subject to each provision of this title that applies to a corporation licensed under this title.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter A. General Provisions › Section 4001.005. Rules

Sec. 4001.005.  RULES.  The commissioner may adopt rules necessary to implement this title and to meet the minimum requirements of federal law, including regulations.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter A. General Provisions › Section 4001.006. Fees

Sec. 4001.006.  FEES.  (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.
(c)  The department shall set the fees in amounts reasonable and necessary to implement this title and may use any portion of those fees to enforce this title.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1172 (S.B. 876), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter A. General Provisions › Section 4001.007. Investigation of Alleged Violations

Sec. 4001.007.  INVESTIGATION OF ALLEGED VIOLATIONS.  (a)  The department may:
(1)  employ persons as the department considers necessary to investigate and make reports regarding alleged violations of this code and misconduct on the part of agents;  and
(2)  pay the salaries and expenses of those persons and office employees and other expenses necessary to enforce this title from the fees described by Section 4001.006.
(b)  A person employed by the department under this section may:
(1)  administer the oath to, and examine under oath, any person considered necessary in gathering information and evidence;  and
(2)  have that information and evidence reduced to writing if considered necessary.
(c)  All expenses related to the activities described by Subsection (b) shall be paid from the fees described by Section 4001.006.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter A. General Provisions › Section 4001.008. Commissioner Agent for Service of Process

Sec. 4001.008.  COMMISSIONER AGENT FOR SERVICE OF PROCESS.  In the manner provided by Subchapter C, Chapter 804, the commissioner is a corporation's or partnership's agent for service of process in a legal proceeding against the corporation or partnership if:
(1)  the corporation or partnership is licensed to engage in business in this state and does not appoint or maintain an agent for service in this state;
(2)  an agent for service cannot be found with reasonable diligence;  or
(3)  the license of the corporation or partnership is revoked.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter B. Acts Constituting Acting as Agent; Consequences of Agent's Actions › Section 4001.051. Acts Constituting Acting as Agent

Sec. 4001.051.  ACTS CONSTITUTING ACTING AS AGENT.  (a)  This section applies regardless of whether an insurer is incorporated under the laws of this state or another state or a foreign government.
(b)  Regardless of whether the act is done at the request of or by the employment of an insurer, broker, or other person, a person is the agent of the insurer for which the act is done or risk is taken for purposes of the liabilities, duties, requirements, and penalties provided by this title or Chapter 21 if the person:
(1)  solicits insurance on behalf of the insurer;
(2)  receives or transmits other than on the person's own behalf an application for insurance or an insurance policy to or from the insurer;
(3)  advertises or otherwise gives notice that the person will receive or transmit an application for insurance or an insurance policy;
(4)  receives or transmits an insurance policy of the insurer;
(5)  examines or inspects a risk;
(6)  receives, collects, or transmits an insurance premium;
(7)  makes or forwards a diagram of a building;
(8)  takes any other action in the making or consummation of an insurance contract for or with the insurer other than on the person's own behalf; or
(9)  examines into, adjusts, or aids in adjusting a loss for or on behalf of the insurer.
(c)  This section does not authorize an agent to orally, in writing, or otherwise alter or waive a term or condition of an insurance policy or an application for an insurance policy.
(d)  The referral by an unlicensed person of a customer or potential customer to an agent is not an act of an agent under this section unless the unlicensed person discusses specific insurance policy terms or conditions with the customer or potential customer.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 355 (H.B. 4030), Sec. 9, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter B. Acts Constituting Acting as Agent; Consequences of Agent's Actions › Section 4001.052. Solicitor of Application for Insurance Considered Agent of Insurer

Sec. 4001.052.  SOLICITOR OF APPLICATION FOR INSURANCE CONSIDERED AGENT OF INSURER.  (a)  A person who solicits an application for life, accident, or health insurance or property or casualty insurance is considered the agent of the insurer issuing a policy on the application and not the agent of the insured in any controversy between the insurer and the insured, the insured's beneficiary, or the insured's dependents.
(b)  The agent may not alter or waive a term or condition of the application or policy.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter B. Acts Constituting Acting as Agent; Consequences of Agent's Actions › Section 4001.053. Personal Liability for Acting as Agent

Sec. 4001.053.  PERSONAL LIABILITY FOR ACTING AS AGENT.  A person who takes an action listed in Section 4001.051 for or on behalf of an insurer before the insurer complies with the requirements of the laws of this state is personally liable to the holder of any insurance policy with respect to which the action was taken for any loss covered by the insurance policy.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter B. Acts Constituting Acting as Agent; Consequences of Agent's Actions › Section 4001.054. Liability of Agent and Insurer for Taxes

Sec. 4001.054.  LIABILITY OF AGENT AND INSURER FOR TAXES.  (a)  If a person takes an action in this state listed in Section 4001.051 for or on behalf of an insurer, the insurer is considered to be engaged in the business of insurance in this state and is subject to the same state, county, and municipal taxes as an insurer that has been legally qualified and admitted to engage in the business of insurance in this state.
(b)  Taxes shall be assessed against and collected from an insurer under this section in the same manner as taxes are assessed against and collected from insurers that are legally qualified and admitted to engage in the business of insurance in this state.
(c)  A person who takes an action by means of which an insurer is considered to be engaged in the business of insurance in this state under this section is personally liable for any taxes assessed against the insurer under this section.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter C. License Requirements › Section 4001.101. License or Certificate of Authority Required; Designated Product Certificate

Sec. 4001.101.  LICENSE OR CERTIFICATE OF AUTHORITY REQUIRED; DESIGNATED PRODUCT CERTIFICATE.  (a)  Unless the person holds a license or certificate of authority issued by the department and, if required by rules adopted under Chapter 4008, a certificate to sell a designated product or product line, a person may not:
(1)  solicit or receive an application for insurance in this state; or
(2)  aid in the transaction of the business of an insurer.
(b)  A person may not act as an agent of a health maintenance organization or other type of insurer authorized to engage in business in this state unless the person holds:
(1)  a license issued by the department as provided by this title; and
(2)  if required by rules adopted under Chapter 4008, a certificate to sell a designated product or product line.
(c)  An insurer described by Subsection (b) may not appoint a person to act as its agent unless the person holds:
(1)  a license under this title; and
(2)  if required by rules adopted under Chapter 4008, a certificate to sell a designated product or product line.
(d)  This subchapter does not permit an employee or agent of a corporation or partnership to perform an act of an agent under this title without obtaining:
(1)  a license; and
(2)  if required by rules adopted under Chapter 4008, a certificate to sell a designated product or product line.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 451 (H.B. 2456), Sec. 1, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter C. License Requirements › Section 4001.102. License Application

Sec. 4001.102.  LICENSE APPLICATION.  (a)  To become an agent for an insurer or health maintenance organization, a person must submit to the department a completed license application in the form required by the department.
(b)  The commissioner by rule shall prescribe the requirements for a properly completed application.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter C. License Requirements › Section 4001.103. Failure to Provide Complete Set of Fingerprints: Ground for Denial of Application

Sec. 4001.103.  FAILURE TO PROVIDE COMPLETE SET OF FINGERPRINTS:  GROUND FOR DENIAL OF APPLICATION.  (a)  In this section, "authorization" means any authorization issued by the department to engage in an activity regulated under this title, including a license or permit.
(b)  The department may deny an application for an authorization if the applicant fails to provide a complete set of fingerprints on request by the department.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter C. License Requirements › Section 4001.104. Issuance of License: Intent to Actively Engage in Business of Insurance for General Public

Sec. 4001.104.  ISSUANCE OF LICENSE:  INTENT TO ACTIVELY ENGAGE IN BUSINESS OF INSURANCE FOR GENERAL PUBLIC.  (a)  The department may not issue a license as an agent to write any line of insurance unless the department determines that:
(1)  the applicant is or intends to be actively engaged in the soliciting or writing of insurance for the general public and is to be actively engaged in the business of insurance;  and
(2)  the application is not made to evade the laws against rebating and discrimination, either for the applicant or for another person.
(b)  This subchapter does not prohibit an applicant from insuring property that the applicant owns or in which the applicant has an interest.  It is the intent of this subchapter to prohibit coercion of insurance and to preserve to each individual the right to choose that individual's own agent or insurer and to prohibit the licensing of an applicant to engage in the business of insurance principally to handle business that the applicant controls only through ownership, mortgage, sale, family relationship, or employment.  An applicant for an original license must have a bona fide intention to engage in business in which, in any calendar year, at least 25 percent of the total volume of premiums is derived from persons other than the applicant and from property other than that on which the applicant controls the placing of insurance through ownership, mortgage, sale, family relationship, or employment.
(c)  The department may not deny a license application solely on the ground that the applicant will act only part-time as an agent.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter C. License Requirements › Section 4001.105. Issuance of License to Individual

Sec. 4001.105.  ISSUANCE OF LICENSE TO INDIVIDUAL.  The department shall issue a license to an individual to engage in business as an agent if the department determines that the individual:
(1)  is at least 18 years of age;
(2)  has passed the licensing examination required under this code within the past 12 months;
(3)  has not committed an act for which a license may be denied under Subchapter C, Chapter 4005;  and
(4)  has submitted the application, appropriate fees, and any other information required by the department.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter C. License Requirements › Section 4001.107. Issuance of License to Depository Institution

Sec. 4001.107.  ISSUANCE OF LICENSE TO DEPOSITORY INSTITUTION.  The department shall issue a license to a depository institution in the manner provided by this subchapter for the licensing of a corporation.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Sec. 4001.108.  ISSUANCE OF LICENSE TO ENTITY CHARTERED BY FEDERAL FARM CREDIT ADMINISTRATION.  The department may license an entity chartered by the federal Farm Credit Administration under the farm credit system established under 12 U.S.C. Section 2001 et seq., as amended, to solicit insurance in this state as provided by 12 U.S.C. Section 2218, as amended.  The department shall issue the license in the manner provided by this subchapter for the licensing of a corporation.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter D. Temporary License › Section 4001.151. Authority to Issue Temporary License

Sec. 4001.151.  AUTHORITY TO ISSUE TEMPORARY LICENSE.  The department may issue a temporary agent's license to an applicant for a license under Section 4001.102 who is being considered for appointment as an agent by another agent, an insurer, or a health maintenance organization.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter D. Temporary License › Section 4001.152. Examination Not Required

Sec. 4001.152.  EXAMINATION NOT REQUIRED.  An applicant is not required to pass a written examination to obtain a temporary license.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter D. Temporary License › Section 4001.153. Application for and Issuance of Temporary License

Sec. 4001.153.  APPLICATION FOR AND ISSUANCE OF TEMPORARY LICENSE.  (a)  Except as provided by Subsection (b), the department shall issue a temporary license immediately on receipt of a properly completed application executed by the applicant in the form required by Section 4001.102 and accompanied by:
(1)  the nonrefundable filing fee set by the department; and
(2)  a certificate signed by an officer or properly authorized representative of an agent, insurer, or health maintenance organization stating that:
(A)  the applicant is being considered for appointment by the agent, insurer, or health maintenance organization as its full-time agent;
(B)  the agent, insurer, or health maintenance organization desires that the applicant be issued a temporary license; and
(C)  the applicant will complete training as prescribed by Section 4001.160 under the agent's, insurer's, or health maintenance organization's supervision.
(b)  The department may deny a license application under this subchapter if the department determines that any of the grounds exist for license denial or disciplinary action under Section 4005.101, Insurance Code, or Chapter 53, Occupations Code.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 347 (H.B. 2819), Sec. 1, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 355 (H.B. 4030), Sec. 11, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter D. Temporary License › Section 4001.154. Authority to Act as Agent Pending Receipt of Temporary License

Sec. 4001.154.  AUTHORITY TO ACT AS AGENT PENDING RECEIPT OF TEMPORARY LICENSE.  If a temporary license is not received from the department before the eighth day after the date the application, nonrefundable fee, and certificate are delivered or mailed to the department and the appropriate agent, insurer, or health maintenance organization has not been notified that the application is denied, the agent, insurer, or health maintenance organization may assume that the temporary license will be issued and the applicant may proceed to act as an agent.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter D. Temporary License › Section 4001.155. Term of Temporary License

Sec. 4001.155.  TERM OF TEMPORARY LICENSE.  A temporary license is valid for 180 days after the date of issuance.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 347 (H.B. 2819), Sec. 2, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 355 (H.B. 4030), Sec. 12, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter D. Temporary License › Section 4001.156. Restriction on Issuance or Renewal of Temporary License

Sec. 4001.156.  RESTRICTION ON ISSUANCE OR RENEWAL OF TEMPORARY LICENSE.  (a)  Repealed by Acts 2021, 87th Leg., R.S., Ch. 347 (H.B. 2819), Sec. 3, and Ch. 355 (H.B. 4030), Sec. 22(3), eff. September 1, 2021.
(b)  A temporary license may not be issued to a person who does not intend to apply for a license to sell insurance or memberships to the general public.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 347 (H.B. 2819), Sec. 3, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 355 (H.B. 4030), Sec. 22(3), eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter D. Temporary License › Section 4001.157. Obtaining Certain Commissions Prohibited

Sec. 4001.157.  OBTAINING CERTAIN COMMISSIONS PROHIBITED.  (a)  A temporary license holder may not obtain a commission on a sale made to a person who has a family, employment, or business relationship with the temporary license holder.
(b)  An agent, insurer, or health maintenance organization may not knowingly pay, directly or indirectly, to a temporary license holder, and a temporary license holder may not receive or accept, a commission on the sale of a contract of insurance or membership covering:
(1)  the temporary license holder;
(2)  a person related to the temporary license holder by consanguinity or affinity;
(3)  a person who is or has been during the past six months the temporary license holder's employer, either as an individual or as a member of a partnership, association, firm, or corporation;  or
(4)  a person who is or has been during the past six months an employee of the temporary license holder.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter D. Temporary License › Section 4001.158. Replacement of Existing Life Insurance or Annuity Contract Prohibited

Sec. 4001.158.  REPLACEMENT OF EXISTING LIFE INSURANCE OR ANNUITY CONTRACT PROHIBITED.  (a)  A temporary license holder who is acting under the authority of that license may not:
(1)  engage in an insurance solicitation, sale, or other agency transaction that the license holder knows or should know will result or is intended to result in:
(A)  the purchase of a new life insurance or annuity contract;  and
(B)  any of the following actions with regard to an existing individual life insurance or annuity contract as a result of that purchase:
(i)  termination of the contract by lapse, forfeiture, surrender, or other means;
(ii)  conversion of the contract to reduced paid-up insurance, continuation of the contract as extended term insurance, or reduction in value of the contract by the use of nonforfeiture benefits or other policy values;
(iii)  amendment of the contract to reduce:
(a)  benefits;  or
(b)  the term for which coverage would otherwise remain in force or for which benefits would be paid;
(iv)  reissuance of the contract with a reduction in cash value;  or
(v)  pledge of the contract as collateral or subjection of the contract to borrowing, whether in a single loan or under a schedule of borrowing, for amounts that in the aggregate exceed 25 percent of the loan value prescribed by the contract;  or
(2)  directly or indirectly receive a commission or other compensation that results or may result from a solicitation, sale, or other agency transaction described by Subdivision (1).
(b)  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 person holding a temporary license.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter D. Temporary License › Section 4001.159. Suspension or Revocation of Temporary Appointment Powers of Agent, Insurer, or Health Maintenance Organization

Sec. 4001.159.  SUSPENSION OR REVOCATION OF TEMPORARY APPOINTMENT POWERS OF AGENT, INSURER, OR HEALTH MAINTENANCE ORGANIZATION.  (a)  The department may suspend or revoke the temporary appointment powers of an agent, insurer, or health maintenance organization if, after notice and opportunity for hearing, the department determines that the agent, insurer, or health maintenance organization has abused the temporary appointment powers.
(b)  In determining whether abuse has occurred, the department may consider:
(1)  the number of temporary appointments made;
(2)  the percentage of appointees taking the examination required for licensing as an agent, as provided by Section 4001.161;  and
(3)  the number of appointees who pass the examination.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter D. Temporary License › Section 4001.160. Training of Applicant for Temporary License

Sec. 4001.160.  TRAINING OF APPLICANT FOR TEMPORARY LICENSE.  (a)  An agent, insurer, or health maintenance organization that is considering appointment of a temporary license applicant as its agent shall provide at least 40 hours of training to the applicant not later than the 30th day after the date the application, nonrefundable fee, and certificate are delivered or mailed to the department.
(b)  At least 10 hours of the training must be taught in a classroom setting, including:
(1)  an accredited college, university, junior college, or community college;
(2)  a business school;  or
(3)  a private institute or classes sponsored by the agent, insurer, or health maintenance organization and specifically established for that purpose.
(c)  The training program must be designed to provide an applicant with basic knowledge of:
(1)  the broad principles of insurance, including the licensing and regulatory laws of this state;
(2)  the broad principles of health maintenance organizations, including membership requirements and related licensing and regulatory laws of this state;  and
(3)  the ethical obligations and duties of an agent.
(d)  If the department determines under Section 4001.159 that an abuse of temporary appointment powers has occurred, the department may require the affected agent, insurer, or health maintenance organization to:
(1)  file with the department a description of the agent's, insurer's, or health maintenance organization's training program;  and
(2)  obtain the approval of the department before continuing to use the training program.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 134 (H.B. 1197), Sec. 1, eff. May 26, 2017.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter D. Temporary License › Section 4001.161. Duty to Ensure That Applicants Take Licensing Examination

Sec. 4001.161.  DUTY TO ENSURE THAT APPLICANTS TAKE LICENSING EXAMINATION.  An agent, insurer, or health maintenance organization shall ensure that, during any two consecutive calendar quarters, at least 70 percent of the agent's, insurer's, or health maintenance organization's applicants for temporary licenses take the required licensing examination.  At least 50 percent of the applicants taking the examination must pass the examination during that period.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter D. Temporary License › Section 4001.162. Restriction on Appointment of Temporary License Holders

Sec. 4001.162.  RESTRICTION ON APPOINTMENT OF TEMPORARY LICENSE HOLDERS.  (a)  Except as provided by Subsection (b), 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.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 201 (H.B. 1201), Sec. 1, eff. May 27, 2005.
Acts 2015, 84th Leg., R.S., Ch. 1172 (S.B. 876), Sec. 2, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter E. Appointment of Agent › Section 4001.201. Appointment Required

Sec. 4001.201.  APPOINTMENT REQUIRED.  A person who obtains a license under this title may not engage in business as an agent unless the person has been appointed to act as an agent by an insurer designated by the provisions of this code and authorized to engage in business in this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter E. Appointment of Agent › Section 4001.202. Appointment by Multiple Insurers

Sec. 4001.202.  APPOINTMENT BY MULTIPLE INSURERS.  (a)  Except as specifically prohibited by this code, an agent may represent and act as an agent for more than one insurer.
(b)  Not later than the 30th day after the effective date of the appointment, the agent and the insurer involved shall notify the department, on a form prescribed by the department, of any additional appointment authorizing the agent to act as agent for one or more additional insurers.  The notice must be accompanied by a nonrefundable fee in an amount set by the department for each additional appointment for which the insurer applies.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4001 - Agent Licensing in General › Subchapter E. Appointment of Agent › Section 4001.203. Term of Appointment

Sec. 4001.203.  TERM OF APPOINTMENT.  (a)  An appointment authorizing an agent to act for an insurer continues in effect without the necessity of renewal until the appointment is terminated or withdrawn by the insurer or the agent.
(b)  A renewal license issued to an agent authorizes the agent to represent and act for each insurer for which the agent holds an appointment until the appointment is terminated or withdrawn, and the agent is considered to be the agent of each appointing insurer for the purposes of this code.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.