CHAPTER 4004. CONTINUING EDUCATION - Texas Statutes

INSURANCE CODE

TITLE 13. REGULATION OF PROFESSIONALS

SUBTITLE A. GENERAL PROVISIONS

CHAPTER 4004. CONTINUING EDUCATION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 4004.001. DEPARTMENT JURISDICTION EXCLUSIVE. The

department has exclusive jurisdiction of all matters relating to

the continuing education of agents licensed under this code.

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

2005.

Sec. 4004.002. ADVISORY COUNCIL. (a) The commissioner may

appoint an advisory council to provide the commissioner with

information and assistance in the conduct of the continuing

education program for agents licensed under this title.

(b) If an advisory council is appointed, the council must be

composed of nine members, four of whom must be public members.

(c) A public member is entitled to reimbursement for the

member's travel expenses as provided by Chapter 660, Government

Code, and the General Appropriations Act.

(d) A public member may not:

(1) be an officer, director, or employee of an insurer,

insurance agency, agent, broker, adjuster, or other business

entity regulated by the department;

(2) be a person required to register with the Texas Ethics

Commission under Chapter 305, Government Code; or

(3) be related to a person described by Subdivision (1) or (2)

within the second degree by affinity or consanguinity, as

determined under Chapter 573, Government Code.

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

2005.

SUBCHAPTER B. AGENT CONTINUING EDUCATION REQUIREMENTS

Sec. 4004.051. GENERAL REQUIREMENTS. (a) Except as provided by

Section 4004.052 or other law, each individual who holds a

license issued by the department shall complete continuing

education as provided by this chapter.

(b) All required continuing education hours must be completed

before the expiration date of the individual's license.

(c) At least 50 percent of all required continuing education

hours must be completed in a classroom setting or a classroom

equivalent setting approved by the department.

(d) The department may accept continuing education hours

completed in other professions or in association with

professional designations in an insurance-related field.

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

2005.

Sec. 4004.052. EXTENSIONS AND EXEMPTIONS. (a) On the timely

written request of an agent, the department may extend the time

for the agent to comply with the continuing education

requirements of this chapter or may exempt the agent from some or

all of the requirements for a licensing period if the department

determines that the agent is unable to comply with the

requirements because of illness, medical disability, or another

extenuating circumstance beyond the control of the agent. The

commissioner by rule shall prescribe the criteria for an

exemption or extension under this subsection.

(b) An individual who has continuously held for at least 20

years an agent license issued under this code is exempt from the

continuing education requirements of this chapter.

(c) The commissioner by rule may provide for other reasonable

exemptions from the continuing education requirements of this

chapter.

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

2005.

Sec. 4004.053. REQUIREMENTS BASED ON TYPE OF LICENSE HELD. (a)

An individual who holds a general life, accident, and health

license, a life agent license, a life and health insurance

counselor license, a general property and casualty license, or a

personal lines property and casualty license must complete 15

hours of continuing education annually. If the individual holds

more than one license for which continuing education is otherwise

required, the individual is not required to complete more than 15

continuing education hours annually. An individual who is

required under rules adopted under Chapter 4008 to hold a

certificate to sell a designated product or product line may use

continuing education programs administered under Section 4004.151

to satisfy the annual continuing education requirements under

this subsection.

(b) An individual who holds a limited life, accident, and health

license or a limited property and casualty license must complete

five hours of continuing education annually.

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

2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

548, Sec. 2.20, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

451, Sec. 2, eff. June 19, 2009.

Sec. 4004.0535. CONTINUING EDUCATION CREDIT FOR PARTICIPATION IN

CERTAIN ASSOCIATIONS. (a) The commissioner by rule may

authorize the department to grant not more than four hours of

continuing education credit to an agent who is an active member

of a state or national insurance association.

(b) The commissioner by rule shall:

(1) specify the types of associations that constitute state or

national insurance associations; and

(2) establish reasonable requirements for active participation

in such an association.

(c) An agent may not use continuing education credit granted

under this section to satisfy:

(1) continuing education hours required to be completed in a

classroom setting or classroom equivalent under Section 4004.051;

or

(2) the ethics requirement adopted under Section 4004.054.

(d) An agent who seeks continuing education credit under this

section shall provide to the department in the manner prescribed

by the commissioner a sworn affirmation that the agent is an

active member of a state or national insurance association

described by Subsection (a) and, for the number of continuing

education hours claimed, has:

(1) reviewed educational materials provided by that association;

or

(2) attended educational presentations sponsored by that

association.

Added by Acts 2005, 79th Leg., Ch.

691, Sec. 1, eff. September 1, 2005.

Sec. 4004.054. ETHICS REQUIREMENT. Each individual who holds a

license issued by the department shall complete two hours of

continuing education in ethics during each license renewal

period.

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

2005.

SUBCHAPTER C. CONTINUING EDUCATION PROGRAMS

Sec. 4004.101. PROGRAM CERTIFICATION. (a) The department shall

certify continuing education programs for agents. The

certification criteria must be designed to ensure that continuing

education programs enhance the knowledge, understanding, and

professional competence of the license holder.

(b) Only a program that satisfies the criteria established by

rule by the commissioner may receive certification.

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

2005.

Sec. 4004.102. CERTIFICATION FEE. (a) A nonrefundable

certification fee, in an amount set by the commissioner as

necessary to administer this chapter, must accompany each

application for certification of a continuing education program.

(b) The commissioner by rule shall establish the certification

fee based on a graduated scale according to the number of hours

required to complete the program.

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

2005.

Sec. 4004.103. PROVIDER REGISTRATION; OTHER REQUIREMENTS. (a)

Each continuing education program provider shall register with

the department as a course provider.

(b) The department shall assess a registration fee for each

application for registration as a course provider, set by the

commissioner in an amount necessary for the proper administration

of this chapter.

(c) The commissioner may adopt rules establishing other

requirements for continuing education program providers.

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

2005.

Sec. 4004.104. INDEPENDENT CONTRACTORS. (a) The department may

enter into agreements with independent contractors under which

the independent contractor certifies and registers continuing

education programs and providers.

(b) The department may require the independent contractors to

correspond directly with providers with regard to the

administration of continuing education programs. The contractors

may collect fees from the providers for administration of the

courses.

(c) Notwithstanding Subsections (a) and (b), the department

retains the authority to establish the scope and type of

continuing education requirements for each type of license.

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

2005.

SUBCHAPTER D. AGENT EDUCATION PROGRAMS

FOR COMPLEX PRODUCTS

Subchapter D, consisting of Secs. 4004.151 to 4004.152, was added

by Acts 2009, 81st Leg., R.S., Ch.

451, Sec. 3.

For another Subchapter D, consisting of Secs. 4004.151 to

4004.155, added by Acts 2009, 81st Leg., R.S., Ch.

326, Sec. 1, see Sec. 4004.151 et seq., post.

Sec. 4004.151. AGENT EDUCATION PROGRAMS. The department shall

administer continuing education and precertification training

programs required by rules adopted under Chapter 4008.

Added by Acts 2009, 81st Leg., R.S., Ch.

451, Sec. 3, eff. June 19, 2009.

Sec. 4004.152. PROGRAM ADMINISTRATION. (a) The department

shall administer a program described by Section 4004.151 in a

manner consistent with the administration of continuing education

programs under Subchapter C.

(b) The department may enter into agreements with independent

contractors for programs described by Section 4004.151 in the

manner prescribed by Section 4004.104 for continuing education

programs.

Added by Acts 2009, 81st Leg., R.S., Ch.

451, Sec. 3, eff. June 19, 2009.

SUBCHAPTER D. ADDITIONAL CONTINUING EDUCATION REQUIREMENTS

FOR SALE OF MEDICARE-RELATED PRODUCTS

Subchapter D, consisting of Secs. 4004.151 to 4004.155, was added

by Acts 2009, 81st Leg., R.S., Ch.

326, Sec. 1.

For another Subchapter D, consisting of Secs. 4004.151 to

4004.152, added by Acts 2009, 81st Leg., R.S., Ch.

451, Sec. 3, see Sec. 4004.151 et seq., post.

Sec. 4004.151. DEFINITIONS. In this subchapter:

(1) "Medicare advantage plan" means a health benefit plan

operated under the Medicare program as a managed care plan,

special needs plan, or private fee-for-service plan.

(2) "Medicare program" means the federal health insurance

program that is operated under the Health Insurance for the Aged

Act (42 U.S.C. Section 1395 et seq.).

(3) "Medicare-related product" means a Medicare advantage plan,

a Medicare prescription drug plan, or another health plan

operated under the Medicare program, such as a Medicare cost plan

or a Medicare demonstration plan. The term does not include a

Medicare supplement benefit plan regulated under Chapter 1652.

Added by Acts 2009, 81st Leg., R.S., Ch.

326, Sec. 1, eff. September 1, 2009.

Sec. 4004.152. AGENT EDUCATION REQUIREMENTS. (a) Unless an

agent has completed eight hours of professional training related

to a Medicare-related product, an agent may not:

(1) sell, solicit, negotiate, or receive an application or

contract for the Medicare-related product in this state; or

(2) represent an insurer in relation to the Medicare-related

product in this state.

(b) The training required under Subsection (a) may be used to

satisfy the continuing education requirements established under

Subchapter B.

Added by Acts 2009, 81st Leg., R.S., Ch.

326, Sec. 1, eff. September 1, 2009.

Sec. 4004.153. REQUIRED CONTINUING EDUCATION REGARDING MEDICARE

PRODUCTS. (a) This section applies to an agent who:

(1) solicits, negotiates, procures, or collects a premium on a

Medicare-related product; or

(2) represents or purports to represent an insurer, a health

maintenance organization, or a preferred provider organization in

relation to such a Medicare-related product.

(b) Each agent described by Subsection (a) must complete four

hours of continuing education that specifically relates to

Medicare-related products during the agent's two-year licensing

period.

(c) Only training in a program that has been certified by the

department may be used to satisfy the requirements of Subsection

(b).

(d) The continuing education required under Subsection (b) may

be used to satisfy the continuing education requirements

established under Subchapter B.

Added by Acts 2009, 81st Leg., R.S., Ch.

326, Sec. 1, eff. September 1, 2009.

Sec. 4004.154. PROGRAM CERTIFICATION REQUIREMENTS. (a)

Subchapter C, including the authorization to contract with an

independent contractor under Section 4004.104, applies to

programs used to satisfy the requirements of Sections 4004.152

and 4004.153. For the purpose of administering this subchapter,

professional training courses shall be considered to be

continuing education courses under Subchapter C.

(b) The commissioner by rule shall adopt criteria for the

programs used to satisfy the requirements of Sections 4004.152

and 4004.153 that are designed to ensure that an agent has

knowledge, understanding, and professional competence concerning

a Medicare-related product. The rules adopted under this

subsection may incorporate by reference any requirements

established by the Centers for Medicare and Medicaid Services or

any other appropriate federal agency.

Added by Acts 2009, 81st Leg., R.S., Ch.

326, Sec. 1, eff. September 1, 2009.

Sec. 4004.155. NONAPPLICATION OF CERTAIN EXEMPTIONS. The

continuing education exemptions for certain agents established

under Section 4004.052(b) and Section 9.02(e), Chapter 703 (S.B.

414), Acts of the 77th Legislature, Regular Session, 2001, do not

apply to requirements under this subchapter.

Added by Acts 2009, 81st Leg., R.S., Ch.

326, Sec. 1, eff. September 1, 2009.

SUBCHAPTER E. CONTINUING EDUCATION REQUIREMENTS FOR SALE OF

ANNUITIES

Sec. 4004.201. DEFINITION. In this subchapter, "annuity" has

the meaning assigned by Section 1115.002.

Added by Acts 2009, 81st Leg., R.S., Ch.

362, Sec. 1.002, eff. September 1, 2009.

Sec. 4004.202. REQUIRED CONTINUING EDUCATION REGARDING

ANNUITIES. (a) This section applies to a resident agent who:

(1) sells, solicits, or negotiates a contract for an annuity in

this state; or

(2) represents or purports to represent an insurer in relation

to such an annuity.

(b) Each agent described by Subsection (a) must complete four

hours of continuing education annually that specifically relates

to annuities. The annual period under this section must be based

on the agent's license expiration date or another date specified

by the commissioner by rule, and the education requirement under

this subsection must be met within that annual period,

notwithstanding Section 4004.051(b).

(c) The continuing education required under this section may be

used to satisfy the continuing education requirements under

Subchapter B.

Added by Acts 2009, 81st Leg., R.S., Ch.

362, Sec. 1.002, eff. September 1, 2009.

Sec. 4004.203. PROGRAM CERTIFICATION REQUIREMENTS. (a) The

commissioner by rule shall adopt criteria for continuing

education programs used to satisfy the requirements of Section

4004.202. Those criteria must include:

(1) topics related specifically to annuities;

(2) state laws and rules related to annuities, including

requirements adopted under Chapter 1115;

(3) prohibited sales practices regarding annuities;

(4) recognition of indicators that a prospective insured may

lack the short-term memory or judgment to knowingly purchase an

annuity; and

(5) fraudulent and unfair trade practices regarding the sale of

annuities.

(b) Subject matter determined by the commissioner to be

primarily intended to promote the sale or marketing of annuities

does not qualify as continuing education for purposes of this

subchapter.

(c) Subchapter C applies to continuing education programs

described by Subsection (a) and training under Section 1115.056.

Any training program disapproved under Subsection (b) shall be

presumed invalid for certification under Subchapter C unless the

program is approved in writing by the commissioner.

Added by Acts 2009, 81st Leg., R.S., Ch.

362, Sec. 1.002, eff. September 1, 2009.