reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4008 - Agent Certification and Education Programs for Complex Insurance Products › Section 4008.003. Rules

Sec. 4008.003.  RULES.  (a)  In adopting rules under this chapter, the commissioner shall:
(1)  designate the products or product lines that may not be sold without certification under this chapter; and
(2)  specify the reasons why it is necessary that the sale of a designated product or product line requires education, experience, or examination.
(b)  By rule, the commissioner may specify:
(1)  any precertification education or experience that must be completed before a designated product or product line may be sold by an agent;
(2)  whether an agent must complete a precertification examination concerning the designated product or product line the agent intends to sell;
(3)  whether an agent certified under this chapter must complete specific continuing education to maintain the certificate; and
(4)  whether, and if so, how frequently, an agent certified under this chapter must periodically retake the examination to maintain the certificate.
Added by Acts 2009, 81st Leg., R.S., Ch. 451 (H.B. 2456), Sec. 5, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4008 - Agent Certification and Education Programs for Complex Insurance Products › Section 4008.004. Application of Certification Requirements to Certain Agents

Sec. 4008.004.  APPLICATION OF CERTIFICATION REQUIREMENTS TO CERTAIN AGENTS.  (a)  The commissioner by rule shall establish whether the certification requirements established under this chapter for sale by an agent of a designated product or product line apply:
(1)  only to an agent who, as of the effective date of the certification requirement, does not hold the underlying agent license required to sell that product or product line; or
(2)  to each licensed agent who engages in the sale of that product or product line.
(b)  If the commissioner adopts rules requiring each agent described by Subsection (a)(2) to be certified under this chapter, the rules must specify the date by which the agent must comply with the certification requirements.
Added by Acts 2009, 81st Leg., R.S., Ch. 451 (H.B. 2456), Sec. 5, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4008 - Agent Certification and Education Programs for Complex Insurance Products › Section 4008.005. Issuance of Certificate

Sec. 4008.005.  ISSUANCE OF CERTIFICATE.  The department shall issue a certificate under this chapter to an agent if the department determines that the agent:
(1)  has submitted a properly completed certification application to the department in a form acceptable to the department;
(2)  has completed, within the 12-month period preceding the date of the certification application, all requirements for the certification required by rules adopted under this chapter; and
(3)  has not committed an act for which a license or certification may be denied under Subchapter C, Chapter 4005.
Added by Acts 2009, 81st Leg., R.S., Ch. 451 (H.B. 2456), Sec. 5, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4008 - Agent Certification and Education Programs for Complex Insurance Products › Section 4008.006. Certificate Expiration

Sec. 4008.006.  CERTIFICATE EXPIRATION.  Unless the commissioner by rule specifies a different period, each certificate issued under this chapter expires on the expiration date of the agent's appropriate underlying license.
Added by Acts 2009, 81st Leg., R.S., Ch. 451 (H.B. 2456), Sec. 5, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4008 - Agent Certification and Education Programs for Complex Insurance Products › Section 4008.007. Certificate Renewal

Sec. 4008.007.  CERTIFICATE RENEWAL.  (a)  An agent may renew an unexpired certificate before the expiration of the certificate by:
(1)  completing all  renewal requirements established by rule under this chapter; and
(2)  filing a properly completed renewal application with the department in a form acceptable to the department.
(b)  A person may not renew a certificate that has been suspended or revoked.
Added by Acts 2009, 81st Leg., R.S., Ch. 451 (H.B. 2456), Sec. 5, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle A - General Provisions › Chapter 4008 - Agent Certification and Education Programs for Complex Insurance Products › Section 4008.008. Administration by Testing Service Authorized

Sec. 4008.008.  ADMINISTRATION BY TESTING SERVICE AUTHORIZED.  The commissioner may accept an examination administered by a testing service, as provided under Subchapter B, Chapter 4002, to satisfy an examination requirement required by rule under this chapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 451 (H.B. 2456), Sec. 5, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter A. General Provisions › Section 4051.001. Applicability of Chapter

Sec. 4051.001.  APPLICABILITY OF CHAPTER.  (a)  This subchapter and Subchapters B-E, G, and I apply to each agent of an insurer authorized to engage in the business of property and casualty insurance in this state.
(b)  This subchapter and Subchapters B-E, G, and I apply to each person who performs the acts of an agent, as described by Section 4001.051, whether through an oral, written, electronic, or other form of communication, by soliciting, negotiating, procuring, or collecting a premium on an insurance contract offered by any kind of insurer authorized to engage in the business of property and casualty insurance in this state, including:
(1)  a fidelity or surety company;
(2)  a mutual insurance company, including a farm mutual or a county mutual;
(3)  a reciprocal or interinsurance exchange; and
(4)  a Lloyd's plan.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 2.23, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter A. General Provisions › Section 4051.002. Requirements Applicable to Certain Agent Contracts

Sec. 4051.002.  REQUIREMENTS APPLICABLE TO CERTAIN AGENT CONTRACTS.  An agent's contract entered into on or after August 27, 1973, by an insurer engaged in the business of property and casualty insurance in this state is subject to Chapter 444.
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.003, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter B. General Property and Casualty License › Section 4051.051. License Required

Sec. 4051.051.  LICENSE REQUIRED.
(a)  A person is required to hold a general property and casualty license if the person acts as:
(1)  an agent who writes property and casualty insurance for an insurer authorized to engage in the business of property and casualty insurance in this state; or
(2)   an agent who writes any other kind of insurance as required by the commissioner for the protection of the insurance consumers of this state.
(b)  Notwithstanding Subsection (a), a person is not required to hold a general property and casualty license to engage in an activity described by Subsection (a) if the person:
(1)  holds a license under this chapter as a personal lines property and casualty agent; and
(2)  limits activities described by Subsection (a) to those activities authorized under the scope of the person's license.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 2.24, eff. September 1, 2007.
Acts 2021, 87th Leg., R.S., Ch. 355 (H.B. 4030), Sec. 17, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter B. General Property and Casualty License › Section 4051.052. Authority to Write Additional Lines

Sec. 4051.052.  AUTHORITY TO WRITE ADDITIONAL LINES.  A person who holds a general property and casualty license may, in addition, write the kinds of insurance contracts described by:
(1)  Section 4051.101 and Subchapter E;  or
(2)  Chapter 4055.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter B. General Property and Casualty License › Section 4051.053. Authority to Write Certain Accident and Health Insurance

Sec. 4051.053.  AUTHORITY TO WRITE CERTAIN ACCIDENT AND HEALTH INSURANCE.  A person who holds a general property and casualty license may, without holding a license under Chapter 4054, write health and accident insurance for a property and casualty insurer authorized to sell those insurance products 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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter B. General Property and Casualty License › Section 4051.054. Deceased, Disabled, or Insolvent Agents; Emergency License

Sec. 4051.054.  DECEASED, DISABLED, OR INSOLVENT AGENTS;  EMERGENCY LICENSE.  (a)  If a property and casualty agent dies, becomes disabled, or is found to be insolvent and unable to pay for premiums as they become due to an insurer, the department may issue, without examination, to an applicant for a property and casualty agent license an emergency license on receipt of proof satisfactory to the department that the emergency license is necessary to preserve the agency assets of the deceased, disabled, or insolvent agent.
(b)  An emergency license is valid for 90 days in any 12 consecutive months and may be renewed by the department for an additional 90 days during the 12-month period if the other requirements of Subtitle A are satisfied.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter C. Limited Property and Casualty License › Section 4051.101. License Required

Sec. 4051.101.  LICENSE REQUIRED.  (a)  Except as provided by Section 4051.052, a person is required to hold a limited property and casualty license if the person acts as an agent who writes:
(1)  job protection insurance as defined by Section 962.002;
(2)  exclusively, insurance on growing crops under Subchapter F;
(3)  any form of insurance authorized under Chapter 911 for a farm mutual insurance company;
(4)  exclusively, any form of insurance authorized to be solicited and written in this state that relates to:
(A)  the ownership, operation, maintenance, or use of a motor vehicle designed for use on the public highways, including a trailer or semitrailer, and the motor vehicle's accessories or equipment; or
(B)  the ownership, occupancy, maintenance, or use of a manufactured home classified as personal property under Section 2.001, Property Code;
(5)  a prepaid legal services contract under Article 5.13-1 or Chapter 961;
(6)  exclusively, an industrial fire insurance policy:
(A)  covering dwellings, household goods, and wearing apparel;
(B)  written on a weekly, monthly, or quarterly basis on a continuous premium payment plan; and
(C)  written for an insurer exclusively engaged in the business as described by Section 912.310;
(7)  credit insurance, except as otherwise provided by Chapter 4055; or
(8)  any other kind of insurance, if holding a limited property and casualty license to write that kind of insurance is determined necessary by the commissioner for the protection of the insurance consumers of this state.
(b)  Subsection (a)(2) applies to an entity chartered by the federal Farm Credit Administration, as provided by the farm credit system under 12 U.S.C. Section 2001 et seq., as amended.
(c)  This section does not apply to a person who wrote for the previous calendar year:
(1)  policies authorized by Chapter 911 for a farm mutual insurance company that generated, in the aggregate, less than $50,000 in direct premium;
(2)  industrial fire insurance policies that generated, in the aggregate, less than $20,000 in direct premium; or
(3)  policies authorized by Chapter 962 for an insurer that generated, in the aggregate, less than $40,000 in direct premium.
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.004, eff. April 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 11.001, eff. September 1, 2011.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter C. Limited Property and Casualty License › Section 4051.102. Designation of Kinds of Insurance

Sec. 4051.102.  DESIGNATION OF KINDS OF INSURANCE.  A person who holds a limited property and casualty license may write only the kind of insurance designated on the 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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter E. County Mutual Agent License › Section 4051.201. License Issuance

Sec. 4051.201.  LICENSE ISSUANCE.  The department shall issue a license to an individual applicant to act as an agent for a county mutual insurance company under Chapter 912 on receipt of certification from the company that the applicant has:
(1)  completed a course of study and instruction in compliance with this subchapter;  and
(2)  passed without aid a written examination administered by the company.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter E. County Mutual Agent License › Section 4051.202. Course

Sec. 4051.202.  COURSE.  (a)  To be eligible to receive a license under this subchapter, an applicant must complete a course of study and instruction offered by the applicable company on motor vehicle insurance and insurance covering dwellings.
(b)  The course of study and instruction must:
(1)  be at least five hours in duration;  and
(2)  include instruction on:
(A)  the policies to be sold;  and
(B)  the laws relating to the regulation of insurance 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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter E. County Mutual Agent License › Section 4051.203. Examination

Sec. 4051.203.  EXAMINATION.  (a)  The commissioner shall prescribe a uniform examination for applicants that fairly tests knowledge of the information contained in the course provided under Section 4051.202.
(b)  The department shall authorize a county mutual insurance company to administer the examination after approval by the department of a complete outline and explanation of the course and the manner of conducting 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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter E. County Mutual Agent License › Section 4051.204. Investigation by Department

Sec. 4051.204.  INVESTIGATION BY DEPARTMENT.  The department may investigate as necessary the manner of instruction and the examination administered by a company under this subchapter.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter E. County Mutual Agent License › Section 4051.205. Withdrawal of Company's Authority

Sec. 4051.205.  WITHDRAWAL OF COMPANY'S AUTHORITY.  The department may withdraw from a county mutual insurance company the authority under this subchapter to offer instruction and administer an 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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter E. County Mutual Agent License › Section 4051.206. Applicability of Limited License Laws

Sec. 4051.206.  APPLICABILITY OF LIMITED LICENSE LAWS.  Except as specifically provided by this subchapter, the provisions of this title that apply to the holder of a limited license apply to the holder of a license issued under this subchapter.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter F. Agricultural Insurance Agent › Section 4051.251. Appointment of Agent

Sec. 4051.251.  APPOINTMENT OF AGENT.  (a)  An insurer that holds a valid certificate of authority to engage in the business of insurance in this state and whose authority in this state and each other jurisdiction in which the insurer is authorized to engage in the business of insurance is limited to the business of insuring risks on growing crops may, subject to this subchapter, appoint and act through an agent licensed under Subchapter B, C, or E.
(b)  An agent appointed under Subsection (a) may act as an agent for more than one insurer but may act as an agent under this subchapter only with respect to the business of insuring risks on growing crops.
(c)  This title applies to the licensing and regulation of an agent appointed under this subchapter.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter F. Agricultural Insurance Agent › Section 4051.252. Requirements for Appointment; Procedure

Sec. 4051.252.  REQUIREMENTS FOR APPOINTMENT;  PROCEDURE.  (a)  To appoint an agent under this subchapter, an insurer must submit a completed appointment form to the department and pay a nonrefundable fee in an amount set by the department.
(b)  The appointment form must be signed by a representative of the insurer.
(c)  The department shall approve an appointment unless the department determines that the applicant does not meet the requirements of this title.
(d)  The department may waive any examination requirement imposed by this title for a license applicant seeking an appointment under this subchapter who has passed an examination as required by Federal Crop Insurance Corporation guidelines for administering the federal crop insurance program.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter F. Agricultural Insurance Agent › Section 4051.253. Acceptance of Certain Continuing Education

Sec. 4051.253.  ACCEPTANCE OF CERTAIN CONTINUING EDUCATION.  The department may accept continuing education hours completed under the guidelines of the Federal Crop Insurance Corporation as satisfying the continuing education requirements imposed 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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter F. Agricultural Insurance Agent › Section 4051.254. Rules

Sec. 4051.254.  RULES.  The commissioner may adopt rules necessary to implement this subchapter 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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter H. Termination or Suspension of Agent Contracts by Property and Casualty Insurers › Section 4051.351. Applicability of Subchapter

Sec. 4051.351.  APPLICABILITY OF SUBCHAPTER.  (a)  Except as provided by Subsection (b), this subchapter applies to each contract between an agent and an insurer engaged in the business of property and casualty insurance in this state.
(b)  This subchapter does not apply to:
(1)  the termination or suspension by an insurer of an agent's contract because of:
(A)  insolvency;
(B)  abandonment;
(C)  gross and wilful misconduct;
(D)  failure to pay the insurer money due to the insurer after receipt of a written demand;  or
(E)  revocation of the agent's license by the department;  or
(2)  the termination or suspension by an insurer of an agent's contract if the insurance policies and insurance business are owned by the insurer rather than the 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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter H. Termination or Suspension of Agent Contracts by Property and Casualty Insurers › Section 4051.352. Suspension of Agent's Contract; Other Definitions

Sec. 4051.352.  SUSPENSION OF AGENT'S CONTRACT;  OTHER DEFINITIONS.  (a)  For purposes of this subchapter, "suspension," with regard to an agent's contract, means the temporary cessation of business relations between an insurer and an agent and refusal by the insurer to accept insurance contracts submitted by the agent.  The term does not include a situation in which business is suspended immediately after a natural disaster.
(b)  The commissioner shall adopt reasonable rules to provide definitions necessary to accomplish the purposes of this subchapter.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter H. Termination or Suspension of Agent Contracts by Property and Casualty Insurers › Section 4051.353. Notice Required Before Termination or Suspension of Contract

Sec. 4051.353.  NOTICE REQUIRED BEFORE TERMINATION OR SUSPENSION OF CONTRACT.  (a)  An insurer may not terminate or suspend a contract with an appointed agent that has been in effect for at least two years unless the insurer provides written notice of the termination or suspension to the agent at least six months before the date the termination or suspension takes effect.
(b)  A contract that replaces or revises a contract that has been in effect for at least two years is subject to this subchapter if there has not been a material change in the ownership of the agency.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter H. Termination or Suspension of Agent Contracts by Property and Casualty Insurers › Section 4051.354. Automatic Termination of Contract on Withdrawal From State or Reduction of Business

Sec. 4051.354.  AUTOMATIC TERMINATION OF CONTRACT ON WITHDRAWAL FROM STATE OR REDUCTION OF BUSINESS.  (a)  An insurer that withdraws from this state or reduces the insurer's total annual premium volume by at least 75 percent in any year is considered to have terminated the contracts of the insurer's agents.  Except as provided by Subsection (b), the insurer shall comply with the requirements of this subchapter.
(b)  An insurer described by Subsection (a) shall renew each contract for property and casualty insurance for the affected agent for 24 months from the date of the notice of termination or suspension of the contract.
(c)  This section does not apply to the transfer of business from an insurer to another insurer with which the agent has a contract and that:
(1)  is under common ownership;  and
(2)  is admitted to engage in the business of insurance 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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter H. Termination or Suspension of Agent Contracts by Property and Casualty Insurers › Section 4051.355. Renewal of Insurance Contracts After Notice of Termination or Suspension

Sec. 4051.355.  RENEWAL OF INSURANCE CONTRACTS AFTER NOTICE OF TERMINATION OR SUSPENSION.  (a)  Except as provided by Subsection (b), an insurer that terminates or suspends an agent's contract with an appointed agent shall renew all contracts for property and casualty insurance for the agent during the six months after the effective date of the termination or suspension of the contract.
(b)  The insurer may decline to renew an insurance contract if any risk does not meet the insurer's current underwriting standards.  The insurer must provide at least 60 days' notice to the agent of the insurer's intent not to renew the contract.
(c)  An insurer that renews an insurance contract under this section shall pay to the agent commissions for the renewal according to the commission schedule that was in effect for the agent before the insurer's decision to terminate or suspend the agent's contract.
(d)  An insurer that renews an insurance contract under this section may not require the agent to convert from agency billing to company billing during the termination period unless the agent agrees in writing to the conversion.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter H. Termination or Suspension of Agent Contracts by Property and Casualty Insurers › Section 4051.356. Insurer Refusal to Renew Agent's Business Prohibited

Sec. 4051.356.  INSURER REFUSAL TO RENEW AGENT'S BUSINESS PROHIBITED.  During the term of the agent's contract, the insurer may not refuse to renew business from the agent that complies with the underwriting standards in effect for agents of the insurer whose contracts have not been terminated or suspended.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter H. Termination or Suspension of Agent Contracts by Property and Casualty Insurers › Section 4051.357. Insurer Approval for New Business or Increase in Liability

Sec. 4051.357.  INSURER APPROVAL FOR NEW BUSINESS OR INCREASE IN LIABILITY.  An agent who receives notice of termination or suspension of the agent's contract from an insurer may not write, without the written approval of the insurer:
(1)  any new business;  or
(2)  any increase in liability on a renewal policy or an existing 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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter H. Termination or Suspension of Agent Contracts by Property and Casualty Insurers › Section 4051.358. Provision of Underwriting Standards to Agent Whose Contract Is Terminated or Suspended

Sec. 4051.358.  PROVISION OF UNDERWRITING STANDARDS TO AGENT WHOSE CONTRACT IS TERMINATED OR SUSPENDED.  (a)  On providing notice to an agent of termination or suspension of the agent's contract under this subchapter, the insurer shall provide to the agent the insurer's written underwriting standards.  The standards must conform to the underwriting standards that were in effect for that agent before the insurer's decision to terminate or suspend the agent's contract.
(b)  An insurer may provide different underwriting standards to different agents of the insurer if the standards are not used in a way that prevents or discourages the renewal of the insurance policies of an agent whose contract is terminated or suspended.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter H. Termination or Suspension of Agent Contracts by Property and Casualty Insurers › Section 4051.359. Payment of Money Due Insurer

Sec. 4051.359.  PAYMENT OF MONEY DUE INSURER.  An insurer shall allow an agent whose contract has been terminated or suspended under this subchapter to pay to the insurer all money due under the same accounts current payment terms in effect for agents of the insurer whose contracts have not been terminated or suspended.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter H. Termination or Suspension of Agent Contracts by Property and Casualty Insurers › Section 4051.360. Revision of Termination Provisions of Agent's Contract

Sec. 4051.360.  REVISION OF TERMINATION PROVISIONS OF AGENT'S CONTRACT.  (a)  This subchapter does not prohibit an amendment of or addendum to an agent's contract providing that the contract may be terminated before the time required by this subchapter if the agent agrees in writing to the earlier termination.
(b)  An insurer that proposes to revise the termination provisions of an agent's contract must first present the agent with a separate written impact statement that summarizes any effect that the proposed amendment or addendum would have on the agent's rights under this subchapter.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter H. Termination or Suspension of Agent Contracts by Property and Casualty Insurers › Section 4051.361. Administrative Penalty

Sec. 4051.361.  ADMINISTRATIVE PENALTY.  If the department determines that an insurer has violated this subchapter, the insurer is subject to an administrative penalty as provided by Chapter 84 of not less than $1,000 or more than $10,000.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter H. Termination or Suspension of Agent Contracts by Property and Casualty Insurers › Section 4051.362. Action for Damages

Sec. 4051.362.  ACTION FOR DAMAGES.  An agent who has sustained actual damages as a result of an insurer's violation of this subchapter may bring an action against the insurer regardless of whether the department has determined that there has been a violation of this subchapter.
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 B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter I. Personal Lines Property and Casualty Agent › Section 4051.401. Personal Lines Property and Casualty License; License Required

Sec. 4051.401.  PERSONAL LINES PROPERTY AND CASUALTY LICENSE; LICENSE REQUIRED.  A person is required to hold a personal lines property and casualty license if the person acts as an agent who writes property and casualty insurance sold to individuals and families primarily for personal or household use for an insurer authorized to engage in the business of property and casualty insurance in this state.
Added by Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 1.01, eff. September 1, 2007.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 355 (H.B. 4030), Sec. 18, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter I. Personal Lines Property and Casualty Agent › Section 4051.402. Authority to Write Additional Lines

Sec. 4051.402.  AUTHORITY TO WRITE ADDITIONAL LINES.  (a)  A person who holds a personal lines property and casualty license may write the kind of insurance contracts described by:
(1)  this subchapter;
(2)  Subchapters C and E; and
(3)  Chapter 4055.
(b)  In addition to any of the insurance contracts described by Subsection (a), a person who holds a personal lines property and casualty license may write accident and health insurance contracts for individuals and families for personal, family, or household purposes for a property and casualty insurer authorized to sell  those insurance products in this state.
Added by Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 1.01, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter I. Personal Lines Property and Casualty Agent › Section 4051.403. Personal Lines Included in General Property and Casualty License

Sec. 4051.403.  PERSONAL LINES INCLUDED IN GENERAL PROPERTY AND CASUALTY LICENSE.  Notwithstanding Section 4051.401, a person who holds a general property and casualty license under Subchapter B may write the kinds of insurance described by this subchapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 1.01, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle B - Agents › Chapter 4051 - Property and Casualty Agents › Subchapter I. Personal Lines Property and Casualty Agent › Section 4051.404. Fees

Sec. 4051.404. FEES.  Section 4001.006 applies to all fees collected under this subchapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 1.01, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle B - Agents › Chapter 4053 - Managing General Agents › Subchapter A. General Provisions › Section 4053.001. Definitions

Sec. 4053.001.  DEFINITIONS.  In this chapter:
(1)  "Affiliate" means a person who is classified as an affiliate under Section 823.003(a).
(2)  "Insurer" means an insurance company, carrier, corporation, reciprocal or interinsurance exchange, mutual, association, county mutual insurance company, Lloyd's plan, or other insurance carrier authorized to engage in the business of insurance in this state.
(3)  "Managing general agent" means a person, firm, or corporation that has supervisory responsibility for the local agency and field operations of an insurer in this state or that is authorized by an insurer to accept or process on the insurer's behalf insurance policies produced and sold by other agents.
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 B - Agents › Chapter 4053 - Managing General Agents › Subchapter A. General Provisions › Section 4053.002. Exception

Sec. 4053.002.  EXCEPTION.  An agent licensed under Subchapter E, Chapter 981, Subchapters B-E or I, Chapter 4051, or Chapter 4056 is not a managing general agent unless the agent accepts 50 percent or more of the agent's total annual business or does $500,000 or more of total annual business as measured by premium volume, whichever amount is less, from insurance policies produced and sold by other agents.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 2.25, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle B - Agents › Chapter 4053 - Managing General Agents › Subchapter A. General Provisions › Section 4053.003. Inapplicability of Chapter

Sec. 4053.003.  INAPPLICABILITY OF CHAPTER.  This chapter does not apply to:
(1)  the transaction of the business of life, health, and accident insurance, including variable life insurance and variable annuity contracts;
(2)  a full-time salaried employee of an insurer acting for and in connection with the insurance business of the insurer;  or
(3)  an adjuster or inspector of risks for an insurer.
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 B - Agents › Chapter 4053 - Managing General Agents › Subchapter A. General Provisions › Section 4053.004. Regulation of Managing General Agents

Sec. 4053.004.  REGULATION OF MANAGING GENERAL AGENTS.  This title applies to the licensing and regulation of a person acting as a managing general 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 B - Agents › Chapter 4053 - Managing General Agents › Subchapter A. General Provisions › Section 4053.005. Rules

Sec. 4053.005.  RULES.  The commissioner may adopt reasonable rules for the administration of this chapter.
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 B - Agents › Chapter 4053 - Managing General Agents › Subchapter B. License Requirements › Section 4053.051. License Required; Exemptions

Sec. 4053.051.  LICENSE REQUIRED;  EXEMPTIONS.  (a)  Except as provided by Subsection (b), a person, firm, or corporation may not act as a managing general agent unless the person, firm, or corporation holds a license issued under this chapter.
(b)  A business corporation is not required to hold a license issued under this chapter to act as a managing general agent if:
(1)  the corporation is authorized to engage in business in this state;
(2)  all of the corporation's outstanding stock is solely owned by an insurer authorized to engage in business in this state and the corporation's business affairs are completely controlled by that insurer;
(3)  the principal purpose for which the corporation exists is to facilitate the accumulation of commissions from the insurer and its subsidiaries and affiliates for the account of and payment to an agent who could otherwise lawfully receive the commissions directly from the insurer and its subsidiaries and affiliates;  and
(4)  the corporation does not engage in any other act of a managing general agent as provided by this chapter.
(c)  Notwithstanding Subsection (b), the managing general agent shall execute on the insurer's behalf a contract entered into with 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 B - Agents › Chapter 4053 - Managing General Agents › Subchapter B. License Requirements › Section 4053.053. Single License Required

Sec. 4053.053.  SINGLE LICENSE REQUIRED.  A license issued under this chapter entitles the license holder to represent or act for one or more insurers as a managing general agent.  The license holder is not required to hold a separate license for each insurer the license holder represents.
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 B - Agents › Chapter 4053 - Managing General Agents › Subchapter B. License Requirements › Section 4053.054. Notice and Approval of Appointment

Sec. 4053.054.  NOTICE AND APPROVAL OF APPOINTMENT.  (a)  Each appointment to act as a managing general agent shall be reported to the commissioner on a form prescribed by the commissioner.
(b)  The form must include:
(1)  the details required by rules adopted under this chapter;
(2)  the insurer's name and identifying number;
(3)  the managing general agent's name and address;
(4)  a statement by an officer of the insurer that the officer or the officer's agent has personal knowledge that the managing general agent has had experience or instruction that qualifies the agent to act as a managing general agent;
(5)  a statement of whether the managing general agent may exercise claim settlement authority for the insurer and, if so:
(A)  whether that authority exceeds $25,000 on any one claim;  and
(B)  whether that authority includes third-party liability other than property damage;  and
(6)  a statement of whether funds exceeding $100,000 are customarily held by the managing general agent to pay losses and loss adjustment expenses for the insurer.
(c)  For each additional appointment for which a managing general agent applies, the agent shall pay a nonrefundable fee in an amount not to exceed $16 as determined by the department.
(d)  If approval of an additional appointment is not received from the commissioner before the eighth day after the date the commissioner receives the completed application and fee, the managing general agent and insurer may assume, in the absence of notice of disapproval from the commissioner, that the commissioner approves the application and the managing general agent may act for the insurer.
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 B - Agents › Chapter 4053 - Managing General Agents › Subchapter B. License Requirements › Section 4053.055. Lapse of License

Sec. 4053.055.  LAPSE OF LICENSE.  If a license holder is not appointed or under appointment to represent an insurer at the time the license is subject to renewal, the license lapses and the commissioner shall deny the renewal 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 B - Agents › Chapter 4053 - Managing General Agents › Subchapter C. Powers and Duties of Managing General Agents › Section 4053.101. General Powers and Duties

Sec. 4053.101.  GENERAL POWERS AND DUTIES.  A managing general agent acting for an insurer may:
(1)  receive and pass on daily reports and monthly accounts;
(2)  receive and be responsible for agency balances;
(3)  handle the adjustment of losses; or
(4)  appoint or direct general property and casualty agents and personal lines property and casualty agents in this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 2.26, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle B - Agents › Chapter 4053 - Managing General Agents › Subchapter C. Powers and Duties of Managing General Agents › Section 4053.102. Contracts

Sec. 4053.102.  CONTRACTS.  (a)  An insurer may not accept business from a managing general agent and the agent may not place business with the insurer without a written contract that addresses:
(1)  the responsibilities of each party;
(2)  cancellation or termination;
(3)  reports, records, and auditing;  and
(4)  if applicable:
(A)  premium volume limits;
(B)  appointment or cancellation of agents;
(C)  claims settlement;
(D)  underwriting;  and
(E)  reinsurance.
(b)  The commissioner may adopt rules establishing requirements for a contract with a managing general agent.
(c)  A contract with a managing general agent and a report or record submitted under that contract are subject to review by the department under Section 38.001.
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 B - Agents › Chapter 4053 - Managing General Agents › Subchapter C. Powers and Duties of Managing General Agents › Section 4053.103. Account Report

Sec. 4053.103.  ACCOUNT REPORT.  (a)  At least once each calendar quarter, a managing general agent shall submit an account report to each insurer with whom the agent has a contract.
(b)  The account report must include, as applicable, a statement of:
(1)  written, earned, and unearned premiums;
(2)  losses and loss expenses paid and outstanding;
(3)  losses incurred but not reported;  and
(4)  management fees.
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 B - Agents › Chapter 4053 - Managing General Agents › Subchapter C. Powers and Duties of Managing General Agents › Section 4053.104. Separate Records

Sec. 4053.104.  SEPARATE RECORDS.  (a)  For each insurer with which a managing general agent has a contract, the agent shall maintain separate records of the business handled by the agent for the insurer.
(b)  The managing general agent shall make a record required under Subsection (a) available for inspection by:
(1)  each insurer;  and
(2)  the department's examiners.
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 B - Agents › Chapter 4053 - Managing General Agents › Subchapter C. Powers and Duties of Managing General Agents › Section 4053.105. Escrow Account

Sec. 4053.105.  ESCROW ACCOUNT.  (a)  A managing general agent shall maintain an escrow account in a bank that:
(1)  is a member of the Federal Reserve System;  and
(2)  has its accounts insured by the Federal Deposit Insurance Corporation.
(b)  On receipt, the managing general agent shall deposit in the escrow account all money collected for each insurer with which the agent has a contract.
(c)  Except as provided by the contract required by Section 4053.102, a managing general agent may not use, take as an offset, or convert money that is or should have been deposited in the escrow account.
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 B - Agents › Chapter 4053 - Managing General Agents › Subchapter C. Powers and Duties of Managing General Agents › Section 4053.106. Fiduciary Capacity

Sec. 4053.106.  FIDUCIARY CAPACITY.  A managing general agent holds money on behalf of an insured or insurer in a fiduciary capacity and shall properly account for that money as required by law, department rules, and a contract with an insurer.  The department's examiners may audit money held in a fiduciary capacity.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.