2005 Texas Insurance Code CHAPTER 4054. LIFE, ACCIDENT, AND HEALTH AGENTS

INSURANCE CODE

CHAPTER 4054. LIFE, ACCIDENT, AND HEALTH AGENTS

SUBCHAPTER A. GENERAL PROVISIONS


	§ 4054.001. APPLICABILITY OF CHAPTER.  (a) This chapter 
applies to each agent of an insurer authorized to provide life, 
accident, and health insurance coverage in this state.
	(b)  This chapter applies to each person who:                                  
		(1)  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 or annuity contract offered 
by any type of insurer authorized to engage in the business of life, 
accident, and health insurance in this state;  or
		(2)  represents or purports to represent a health 
maintenance organization in soliciting, negotiating, procuring, or 
effecting membership in the health maintenance organization.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          

SUBCHAPTER B. GENERAL LIFE, ACCIDENT, AND HEALTH LICENSE


	§ 4054.051. LICENSE REQUIRED.  A person is required to 
hold a general life, accident, and health license if the person acts 
as:
		(1)  an agent who represents a health maintenance 
organization;             
		(2)  an industrial life insurance agent for an insurer 
that writes only weekly premium life insurance on a debit basis 
under Chapter 1151;
		(3)  an agent who writes life, accident, and health 
insurance for a life insurance company;
		(4)  an agent who writes only accident and health 
insurance;                
		(5)  an agent who writes fixed or variable annuity 
contracts or variable life contracts;
		(6)  an agent who writes for a stipulated premium 
company:                  
			(A)  only life insurance in excess of $15,000 on 
any one life;             
			(B)  only accident and health insurance;  or                                 
			(C)  both kinds of insurance described by 
Paragraphs (A) and (B);          
		(7)  an agent who writes life, accident, and health 
insurance for any type of authorized life insurance company that is 
domiciled in this state, including a legal reserve life insurance 
company, and who represents the company:
			(A)  in a foreign country or territory;  and                                 
			(B)  on a United States military installation or 
with United States military personnel;
		(8)  an agent who writes life, accident, and health 
insurance for a fraternal benefit society except as provided by 
Section 885.352;  or
		(9)  an agent who writes any other kind of insurance as 
required by the commissioner for the protection of the insurance 
consumers of this state.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.052. COMBINATION LIFE INSURANCE AGENT.  (a) In 
this section, a "combination company" means an insurer that writes 
weekly premium life insurance or monthly ordinary life insurance on 
a debit basis.
	(b)  A person may not act as a combination life insurance 
agent for a combination company unless the person holds a general 
life, accident, and health license.
	(c)  A combination company and a combination life insurance 
agent may also write ordinary life insurance contracts.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.053. AUTHORITY TO WRITE ADDITIONAL LINES.  A 
person who holds a general life, accident, and health license may, 
without obtaining an additional license, write the kinds of 
insurance contracts described by:
		(1)  Subchapter C, D, or E;  or                                               
		(2)  Chapter 4055.                                                            

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          

SUBCHAPTER C. LIMITED LIFE, ACCIDENT, AND HEALTH LICENSE


	§ 4054.101. LICENSE REQUIRED.  Except as provided by 
Section 4054.053, an agent is required to hold a limited life, 
accident, and health license if the agent writes:
		(1)  a policy or rider to a policy that provides only:                        
			(A)  lump-sum cash benefits in the event of 
accidental death or dismemberment;  or
			(B)  ambulance expense benefits in the event of 
accident or sickness;      
		(2)  a prepaid legal services contract under Article 
5.13-1 or Chapter 961; 
		(3)  credit insurance, except as otherwise provided by 
Chapter 4055;  or    
		(4)  any other kind of insurance, if holding a limited 
life, accident, and health license to write that kind of insurance 
is determined necessary by the commissioner for the protection of 
the insurance consumers of this state.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.102. DESIGNATION OF KINDS OF INSURANCE.  A person 
who holds a limited life, accident, and health license may write 
only the kind of insurance designated on the license.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.103. TEMPORARY LICENSE.  An applicant for a 
limited life, accident, and health license is eligible for a 
temporary license under Subchapter D, Chapter 4001.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          

SUBCHAPTER D. FUNERAL PREARRANGEMENT LIFE INSURANCE LICENSE


	§ 4054.151. FUNERAL PREARRANGEMENT LIFE INSURANCE 
AGENT.  A funeral prearrangement life insurance agent is a life 
insurance agent who, subject to the limitations of this subchapter, 
writes only life insurance policies and fixed annuity contracts to 
secure the delivery of funeral services and merchandise under 
prepaid funeral contracts regulated by the Texas Department of 
Banking under Chapter 154, Finance Code.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.152. LICENSE ISSUANCE.  The department shall issue 
a license to an individual applicant to act as a funeral 
prearrangement life insurance agent on receipt of certification 
from an insurer authorized to write life insurance policies and 
fixed annuity contracts in this state 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 insurer.  

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.153. COURSE.  (a) To be eligible to receive a 
license under this subchapter, an applicant must complete a course 
of study and instruction offered by an insurer under this section on 
life insurance policies and fixed annuity contracts.
	(b)  The course of study and instruction must:                                 
		(1)  be at least five hours in duration;  and                                 
		(2)  include instruction on:                                                  
			(A)  the life insurance policies and fixed annuity 
contracts to be sold;  and
			(B)  the laws relating to funeral prearrangement.                            

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.154. EXAMINATION.  (a) The commissioner shall 
prescribe a uniform examination for applicants that fairly tests 
knowledge of the information contained in the course under Section 
4054.153.
	(b)  The department shall authorize an insurer to administer 
the examination as provided by this section 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, § 7, eff. April 1, 2005.          


	§ 4054.155. INVESTIGATION BY DEPARTMENT.  The department 
may investigate as necessary the manner of instruction and the 
examination administered by an insurer under this subchapter.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.156. WITHDRAWAL OF INSURER'S AUTHORITY.  The 
department may withdraw from an insurer the authority under this 
subchapter to offer instruction and administer an examination.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.157. LIMIT ON AGENT'S AUTHORITY.  A funeral 
prearrangement life insurance agent licensed under this subchapter 
may not write any coverage or combination of coverages with an 
initial guaranteed death benefit that exceeds $15,000 on any life.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.158. REVOCATION;  NOTIFICATION.  (a) A license 
issued under this subchapter to act as an agent for an insurer is 
revoked if the license holder ceases to act as an agent for the 
insurer.
	(b)  Not later than the 15th day after the date on which the 
license holder ceases to act as an agent for an insurer, the insurer 
or agent shall send written notification to the department.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.159. CONTINUING EDUCATION EXEMPTION.  (a) 
Notwithstanding any other provision of this code, a funeral home 
employee or other person who holds a funeral prearrangement life 
insurance agent license and who writes only life insurance policies 
and fixed annuity contracts to secure the delivery of funeral 
services and merchandise under prepaid funeral contracts regulated 
by the Texas Department of Banking under Chapter 154, Finance Code, 
is not required to comply with any continuing education 
requirements to maintain the license, except that the appointing 
insurer must educate its appointed agents about any new products 
sold by the agent to fund prepaid funeral contracts.
	(b)  A license holder to whom this section applies may be 
appointed by more than one insurer.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.160. 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, § 7, eff. April 1, 2005.          

SUBCHAPTER E. LIFE INSURANCE NOT EXCEEDING $15,000


	§ 4054.201. LICENSE ISSUANCE;  EXCEPTION.  (a) The 
department shall issue a license to an individual applicant to act 
as an agent who writes only life insurance policies in an amount 
that does not exceed $15,000 on any one life on receipt of 
certification from a stipulated premium company, a statewide mutual 
assessment company, a local mutual aid association, or a local 
mutual burial association, 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 insurer.  
	(b)  A license is not required under this subchapter for an 
agent who, in the preceding calendar year, wrote policies that 
generated, in the aggregate, less than $20,000 in direct premium.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.202. COURSE.  (a) To be eligible to receive a 
license under this subchapter, an applicant must complete a course 
of study and instruction offered by an insurer under this section on 
life insurance and fixed annuities.
	(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, § 7, eff. April 1, 2005.          


	§ 4054.203. 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 4054.202.
	(b)  The department shall authorize an insurer described by 
Section 4054.201 to administer the examination as provided by this 
section 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, § 7, eff. April 1, 2005.          


	§ 4054.204. INVESTIGATION BY DEPARTMENT.  The department 
may investigate as necessary the manner of instruction and the 
examination administered by an insurer under this subchapter.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.205. WITHDRAWAL OF INSURER'S AUTHORITY.  The 
department may withdraw from an insurer the authority under this 
subchapter to offer instruction and administer an examination.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.206. LIMIT ON AGENT'S AUTHORITY.  An insurance 
agent licensed under this subchapter may not write any coverage or 
combination of coverages with an initial guaranteed death benefit 
that exceeds $15,000 on any life.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.207. CONTINUING EDUCATION EXEMPTION.  (a) 
Notwithstanding any other provision of this code, a person who 
holds a license under this subchapter and who writes only life 
insurance policies and fixed annuity contracts to secure the 
delivery of funeral services and merchandise under prepaid funeral 
contracts regulated by the Texas Department of Banking under 
Chapter 154, Finance Code, is not required to comply with any 
continuing education requirements to maintain the license, except 
that the appointing insurer must educate its appointed agents about 
any new products sold by the agent to fund prepaid funeral 
contracts.
	(b)  A license holder to whom this section applies may be 
appointed by more than one insurer.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.208. 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, § 7, eff. April 1, 2005.          

SUBCHAPTER F. RENEWAL OR SERVICE COMMISSIONS TO AGENTS OF LIFE 
INSURANCE COMPANIES DISCONTINUING BUSINESS IN STATE


	§ 4054.251. INSURANCE COMPANY LIABILITY FOR PAYMENT OF 
COMMISSIONS.  A life insurance company that discontinues the 
business of issuing life insurance policies on the lives of 
residents of this state remains liable for the payment of renewal or 
service commissions on life insurance policies previously written 
by the company under the terms of the company's contracts 
previously made with agents residing in this state.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.252. MONTHLY AND QUARTERLY STATEMENTS.  (a) A life 
insurance company shall provide to each agent who may be entitled to 
receive renewal or service commissions from the company under 
Section 4054.251:
		(1)  a monthly statement that shows the policies 
written by the agent for the company that terminated during the 
month for which the statement is made;  and
		(2)  at least quarterly, a detailed statement of all 
policies written by the agent for the company on the lives of 
residents of this state that shows:
			(A)  the policies in force;  and                                             
			(B)  the policies that have terminated, with the 
reason for the termination.
	(b)  A life insurance company is not required to provide an 
agent with a statement under this section after the expiration of 
the period during which renewal or service commissions are payable 
as to all of the policies written by the agent for the company.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.          


	§ 4054.253. PRESUMPTION IN LAWSUIT.  In a suit against a 
life insurance company for the recovery of a renewal or service 
commission under this subchapter, a presumption exists that each 
policy written by the company on the life of a resident of this 
state by the agent bringing the suit continues in effect unless the 
defendant proves the contrary by competent evidence.

Added by Acts 2003, 78th Leg., ch. 1274, § 7, eff. April 1, 2005.