CHAPTER 4056. NONRESIDENT AGENTS - Texas Statutes

INSURANCE CODE

TITLE 13. REGULATION OF PROFESSIONALS

SUBTITLE B. AGENTS

CHAPTER 4056. NONRESIDENT AGENTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 4056.001. APPLICABILITY OF TITLE. This title applies to

licensing of a nonresident agent under this chapter.

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

2005.

Sec. 4056.002. RIGHTS OF LICENSE HOLDERS. Except as otherwise

specifically provided by this code, an individual who is not a

resident of this state and to whom a license is issued under this

chapter has the same rights and privileges as a resident license

holder.

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

2005.

Sec. 4056.003. RECIPROCAL LICENSING AGREEMENTS. The

commissioner may enter into an agreement with the appropriate

official of another state as necessary to implement reciprocal

licensing of nonresident agents.

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

2005.

Sec. 4056.004. HOME OFFICE EMPLOYEES. This chapter does not

affect the authority established under Subchapter G, Chapter

4051, of a full-time home office salaried employee of an insurer

authorized to engage in the business of insurance in this state.

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

2005.

Sec. 4056.005. RULES. The commissioner may adopt rules as

necessary to implement this subchapter and Subchapter B 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.

SUBCHAPTER B. NONRESIDENT AGENT LICENSE

Sec. 4056.051. APPLICATION FOR NONRESIDENT AGENT LICENSE;

CRIMINAL HISTORY. (a) To apply for a license to act as a

nonresident agent, a person who is not a resident of this state

must submit to the department:

(1) an application on a form prescribed by the department; and

(2) the nonrefundable license application fee.

(b) An applicant who does not hold an insurance agent's license

in the applicant's state of residence must, through the law

enforcement agency of the state of residence, submit to the

department a copy of the applicant's criminal history records.

The department shall use the criminal history records to

determine the applicant's eligibility for issuance of a license

in accordance with this title and other laws of this state.

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

2005.

Sec. 4056.052. ISSUANCE OF LICENSE TO NONRESIDENT AGENT LICENSED

IN OTHER STATE. (a) The department shall issue a license to an

applicant under this chapter if:

(1) the applicant holds a license in good standing as an agent

in the applicant's state of residence; and

(2) the applicant's state of residence will grant a nonresident

agent license on a reciprocal basis to a resident agent of this

state.

(b) The department may issue a reciprocal nonresident agent

license to an applicant if the authority granted by the license

issued by the applicant's state of residence is generally

comparable to the authority granted by a license issued by this

state.

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

2005.

Sec. 4056.053. ISSUANCE OF LICENSE TO NONRESIDENT AGENT NOT

LICENSED IN OTHER STATE. The department shall issue a license to

an applicant under this chapter if the applicant has:

(1) passed the examination for an agent's license required under

this title;

(2) met the eligibility requirements for issuance of a license

after an examination of the applicant's criminal history records

under Section 4056.051(b); and

(3) satisfied the requirements for a license for an individual

under this code, including Subchapter C, Chapter 4001.

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

2005.

Sec. 4056.054. ISSUANCE OF LICENSE TO CORPORATION OR

PARTNERSHIP. The department shall issue a license to an

applicant under this chapter if the applicant has satisfied the

requirements for a license for a corporation or partnership under

Subchapter C, Chapter 4001.

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

2005.

Sec. 4056.055. WAIVER OF REQUIREMENTS FOR NONRESIDENT AGENT

LICENSED IN OTHER STATE OR JURISDICTION. The department may

waive any license requirement for an applicant who holds a valid

license from another state or jurisdiction if:

(1) that state or jurisdiction has license requirements

substantially equivalent to those of this state; or

(2) the waiver is necessary to promote reciprocal licensing of

nonresident agents among a majority of the states.

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

2005.

Sec. 4056.056. RESTRICTIONS ON LINE OF INSURANCE BUSINESS FOR

RECIPROCAL NONRESIDENT AGENT LICENSE. A nonresident agent

licensed under Section 4056.052 may not act as a nonresident

agent for a line of insurance business in this state unless the

agent is authorized in the agent's state of residence to act in

that state as an agent for that line of insurance business.

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

2005.

Sec. 4056.057. CONTINUING EDUCATION. (a) The continuing

education requirements imposed under Chapter 4004 do not apply to

a person who:

(1) holds a license issued under this chapter; and

(2) is in compliance with the continuing education requirements

of the person's state of residence.

(b) A person who holds a license issued under this chapter and

who does not hold an insurance agent's license in the person's

state of residence shall comply with the continuing education

requirements imposed under Chapter 4004.

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

2005.

Sec. 4056.058. SERVICE OF PROCESS. The commissioner is the

agent for service of process in the manner provided by Subchapter

C, Chapter 804, in a legal proceeding against a nonresident agent

who holds a license issued under this chapter if:

(1) the nonresident agent does not appoint or maintain an agent

for service in this state;

(2) an agent for service is appointed but cannot with reasonable

diligence be found; or

(3) the license of the nonresident agent is revoked.

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

2005.