Ch13license require/types- agents- CE- appt-fingrpr

LICENSING REQUIREMENTS Types of Licenses

1. All Lines 2. Property 3. Property and Casualty 4. Surety 5. Workers' Compensation Licensing Generally, no company or individual can conduct insurance business in Texas without being properly license and supervised by the Commissioner. All insurance companies and individuals must obtain a certificate of authority (license) to transact business in Texas.

Continuing Education

The Continuing Education requirement for Adjusters is 24 hours, every two years. Two of these hours must be in Consumer Protection or Adjuster Ethics.

Failure to comply

1. is in violation of or had failed to comply with the Insurance Code; 2. has filed any document which is false or deceptive for the purpose of providing evidence of complying with the continuing education statutes or in responding to any inquiry from the Department concerning compliance; 3. has falsified records or participated in any activity that allows circumvention of the requirements of the Insurance Code; 4. has received or used unauthorized materials or assistance or provided to another student unauthorized materials or assistance before or during an examination or interactive inquiry period; 5. has failed to pay within 90 days an automatic fine without properly requesting a hearing.

Reporting of actions

2. A corporation or partnership licensed as an agent must file biographical information for: a. each executive officer, director, or unlicensed partner who administers the entity's operations; b. each shareholder who is in control of the corporation or partner who has the right or ability to control the partnership; and c. if the corporation or partnership is owned, in whole or in part, by another entity, each individual who is in control of parent entity. 3. A corporation or partnership must notify the department no later than 30 days after: a. a felony conviction of a licensed agent; b. an agent's suspension or revocation another state; c. the addition or removal of an officer, director, partner, member or manager.

License renewal

3. If a license has been expired for more than 90 days, adjusters will have to pass the license examination again and must meet all requirements for a new license. 4. The Department may renew, without examination, an expired license of a person who was licensed in Texas, moved to another state, and is currently licensed and in continual practice in that state. 5. At least 30 days before the license expires, the Department will send a written notice of the impending license expiration (with renewal form) to the address on file for the agent.

License denial, renewal, expiration. -denial continued

5. engaged in fraudulent or dishonest acts or practices; 6. been convicted of a felony; 7. obtained attempted to obtain a license for controlled business;

Certificate of Authority

A certificate of authority is effective until it is suspended or revoked. Before denying or revoking a certificate of authority, the Commissioner must give an insurer at least 10 days written notice, specifically stating the reason for the proposed action.

Nonresident Agents

A license nonresident agent has the same rights and privileges as a resident license holder. The Commissioner may enter into an agreement with the appropriate official of another state as necessary to implement reciprocal licensing of nonresident agents.

Appointment

A licensed agent may represent more than one insurer at any time while the agent's license is in force The agent and insurance company must notify the Commissioner of any additional appointments. The notice must be accompanied by a certificate from each insurer named in each additional appointment and must state the insurance company wants to appoint the applicant as its agent. The agent must pay a nonrefundable fee for each additional appointment.

Licensing Requirements

A person who wishes to obtain a license must: a. Be at least 18 years old; b. Pass the state licensing examination; c. Have not committed an act for which a license may be denied under the Insurance Code; d. Submit the application, nonrefundable fee, and any other information required by the department. authorization if the applicant fails to provide a The Department deny an application for an complete set of may fingerprints on request by the Department.

Temporary License

A temporary insurance license can be obtained before a person passes the state examination for the permanent license.

Fingerprint and criminal history requirements

All Texas resident applicants, Adjuster (Designated Home State), and all nonresident insurance adjuster applicants must submit their fingerprints as part of the license application unless the applicant already submitted fingerprints to TDI for another license or registration and that license or registration is still active. Applicants claiming exemption from the fingerprint requirements must provide information on the type of license application or TDI filing with which the fingerprints were submitted and the date the fingerprints were submitted to the Texas Department of Insurance.

License denial, renewal, expiration

An insurance license issued in Texas is valid for two years, with the following stipulations. A temporary license is valid for only 90 days. Texas uses a combined license renewal process, which means that a person with a Texas license who receives a new license for a different line of insurance will be licensed in that line for less than two years, so that both licenses come due for renewal at the same time.

Exemptions from continuing education requirement

Exemptions from and extensions of time, for a licensee to comply with continuing education requirements are granted under very limited circumstances. a. The request fro an exemption must be presented on proper documentation and must be due to circumstances that are beyond the licensee's control. Examples might be long-term illness or military service in a theater of war. Reasons related to business or work-load are never acceptable. B. An individual who has continuously held a license as an insurance agent for at lest 20 years is exempt from the continuing education requirements.

One license per Agent

No agent may hold more than one license of the same type currently in effect.

Certificate of Authority

No insurer may conduct business n Texas unless it has received a certificate of authority from the Department of Insurance. A certificate of authority indicates that the insurer has met the department's standards and qualified to transact insurance business in Texas.

Interstate move by the agent

No later than 30 days after moving from one state to another, an agent licensed in Texas must file: a. the agent's new address; b. proof of authorization to engage in the business of insurance in the new state of residence.

Agent

To act as an insurance agent (agent or adjuster) in Texas, a person must have a valid Texas Insurance license for the type of insurance involved. A person may not act as an agent of any insurer unless licensed by the state, and insurers may not appoint any person to act as their agent unless that person is licensed. An agent's license can be issued to a natural person, a corporation, or a partnership. Broadly speaking, an agent is anyone who transacts, solicits, negotiates an insurance contract.

Appoiintment continued

a. An agent's appointment continues in effect until it is terminated and withdrawn by the insurance company or agent. When an insurer terminates and agent's appointment for cause, it must immediately file with the Commissioner a statement of the facts related to the termination and the date and cause. b. Each renewal license authorizes the agent to represent the insurers for which the agent holds appointments until the appointments are terminated. The agent is considered to be the agent of the appointing insurer. c. If an agent who has been appointed by an insurer appoints a subagent, the general agent must give written notification to the Department about the appointment, along with a nonrefundable fee. : If an agent terminates a subagent for any reason other than for cause, the agent must promptly report the termination to the Department, and the subagent has no further authority to act for the agent or insurer.

Tx law defines an agent as someone who is authorized to:

a. Solicit insurance on behalf or an insurer; b. Receive or transmit an application for insurance or an insurance policy to or from the insurer; c. Advertise the he will receive or transmit an application for insurance or insurance policy; d. Receive or transmit an insurance policy; e. Examine or inspect a risk; f. Receive, collect or transmit an insurance premium; g. Take any other action in the making or consummation of insurance; h. Examine, adjust, or aid in adjusting a loss for or on behalf or an insurer. The referral by an unlicensed person of a customer or potential customer to an agent is not an act of an agent under the section unless the unlicensed person discusses specific policy terms or conditions with the customer or potential customer.

Automatic fines

b. If the assessment of the fine is disputed, the Department may, at its discretion, assert other matters and claims against the fined party at a hearing and also seek any disciplinary action available under the Insurance Code, including additional fine amounts in excess of the automatic fine amount. c. The Department adopts the following automatic fines: 1. For failure by a licensee to obtain the required number of continuing education hours, $50 per credit hour not completed;

License termination, revocation, suspension

b. The Commissioner may refuse the application unless the applicant shows good cause why the action on the previous license should not prevent a new license from being issued. c. The Commissioner will suspend an agent's license f he does not have an outstanding valid appointment with an urance company. d. The surrender of an agent's license to the Insurance Department will not negate any offense committed before the surrender's effective date.