CHAPTER 4008. AGENT CERTIFICATION AND EDUCATION PROGRAMS FOR COMPLEX INSURANCE PRODUCTS - Texas Statutes

INSURANCE CODE

TITLE 13. REGULATION OF PROFESSIONALS

SUBTITLE A. GENERAL PROVISIONS

CHAPTER 4008. AGENT CERTIFICATION AND EDUCATION PROGRAMS FOR

COMPLEX INSURANCE PRODUCTS

Sec. 4008.001. PURPOSE. Certain insurance products are so

complex that the general agent licensing and continuing education

requirements are insufficient to ensure the level of agent

expertise necessary to safeguard consumer interests. Agents

should be equipped with the necessary skills and knowledge to

assist insureds appropriately in their purchases. Requiring

agent training or demonstration of knowledge before an agent may

sell particularly complex products mitigates the negative impact

caused by agents selling complex products without the training

and knowledge necessary to sell those products in a manner that

is fair and beneficial to insureds.

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

451, Sec. 5, eff. June 19, 2009.

Sec. 4008.002. TRAINING AND EXAMINATION REQUIREMENTS AUTHORIZED.

(a) The commissioner may adopt rules requiring an agent who

holds a license issued under this code to be certified, through

specific education, training, examination, and experience

requirements as provided by this chapter, before an agent may

sell a product or product line designated by the commissioner.

(b) Education, training, examination, and experience

requirements established by rule under this chapter may be used

to satisfy any other agent education, training, examination, and

experience requirements otherwise established under this code.

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

451, Sec. 5, eff. June 19, 2009.

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, Sec. 5, eff. June 19, 2009.

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, Sec. 5, eff. June 19, 2009.

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, Sec. 5, eff. June 19, 2009.

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, Sec. 5, eff. June 19, 2009.

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, Sec. 5, eff. June 19, 2009.

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, Sec. 5, eff. June 19, 2009.