CHAPTER 4153. RISK MANAGERS - Texas Statutes

INSURANCE CODE

TITLE 13. REGULATION OF PROFESSIONALS

SUBTITLE D. OTHER PROFESSIONALS

CHAPTER 4153. RISK MANAGERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 4153.001. DEFINITION. In this chapter, "risk manager"

means a person who:

(1) represents to the public that the person is a risk manager;

and

(2) for compensation examines or evaluates risks for and

provides advice regarding reduction of risks to a person seeking

to obtain or renew property and casualty insurance coverage in

this state.

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

2005.

Sec. 4153.002. EXEMPTIONS. This chapter does not apply to a

person who is employed as a risk manager by:

(1) a liability insurance company authorized to engage in

business in this state;

(2) a single employer; or

(3) a public self-insurance pool.

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

2005.

Sec. 4153.003. RULES. The commissioner may adopt rules

necessary to carry out this chapter and to regulate risk

managers.

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

2005.

SUBCHAPTER B. LICENSE REQUIREMENTS

Sec. 4153.051. LICENSE REQUIRED. A person may not act as or

represent that the person is a risk manager in this state unless

the person:

(1) meets the requirements prescribed by this chapter and

department rules; and

(2) holds a license issued by the department.

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

2005.

Sec. 4153.052. APPLICATION. (a) To obtain a license to act as

a risk manager in this state, an applicant must submit to the

department an application on forms prescribed by the commissioner

and provided by the department.

(b) An application must be accompanied by the license fee

required by Section 4153.057 and include:

(1) information the department requires relating to the

applicant's identity, personal history, experience, and business

record; and

(2) any other information the department requires.

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

2005.

Sec. 4153.053. QUALIFICATIONS. To qualify for a risk manager's

license, an applicant must:

(1) be at least 18 years of age;

(2) maintain a place of business in this state;

(3) meet the application requirements prescribed by this chapter

and department rules;

(4) take and pass the examination required by this chapter; and

(5) pay the examination and license fees.

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

2005.

Sec. 4153.054. EXAMINATION. (a) Except as provided by Sections

4153.055 and 4153.058, an applicant for a risk manager's license

must personally take and pass an examination to the satisfaction

of the commissioner under this chapter and department rules.

(b) The commissioner shall prescribe the examination for a risk

manager's license. The examination must:

(1) be designed to test the qualifications and competency of the

applicant to be a risk manager; and

(2) be of sufficient scope to reasonably test the applicant's

knowledge of risk management and the duties and responsibilities

of a risk manager under the laws of this state and department

rules.

(c) The department shall:

(1) determine the times and places for examinations; and

(2) give reasonable public notice of the examinations in the

manner provided by department rules.

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

2005.

Sec. 4153.055. EXEMPTIONS FROM EXAMINATION REQUIREMENT. An

applicant is not required to take an examination to obtain a risk

manager's license if the applicant holds the designation of:

(1) chartered property casualty underwriter (CPCU) from the

American Institute for Chartered Property Casualty Underwriters;

(2) certified insurance counselor (CIC) from the national

Society of Certified Insurance Counselors; or

(3) associate in risk management (ARM) from the Insurance

Institute of America.

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

2005.

Sec. 4153.056. REEXAMINATION. (a) An applicant who fails the

examination may retake the examination on payment of an

additional examination fee.

(b) The commissioner may require the applicant to wait for a

reasonable period determined by the commissioner before the

applicant may retake the examination.

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

2005.

Sec. 4153.057. FEES. (a) The commissioner shall set and

collect in advance a nonrefundable fee, in an amount not to

exceed $50, for:

(1) an examination required by this chapter if the department

administers the examination;

(2) a risk manager's license; and

(3) the renewal of a risk manager's license.

(b) A fee collected under this section shall be deposited to the

credit of the Texas Department of Insurance operating account.

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

2005.

Sec. 4153.058. RECIPROCAL LICENSE. On submission of an

application and the license fee required by Section 4153.057, a

person may receive a risk manager's license without examination

if the person is licensed as a risk manager by another state, the

licensing requirements of which were, on the date the license was

issued, substantially equivalent to the requirements prescribed

by this chapter.

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

2005.

Sec. 4153.059. LICENSE EXPIRATION. Except as otherwise provided

by a staggered renewal system adopted under Section 4003.002, a

risk manager's license expires on the second anniversary of the

date the license was issued.

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

2005.

Sec. 4153.060. LICENSE RENEWAL. (a) A license holder may renew

an unexpired license by:

(1) filing with the department a completed renewal application;

and

(2) paying the nonrefundable renewal fee.

(b) The commissioner shall issue a renewal certificate to the

license holder if the commissioner determines the license holder

continues to be eligible for the license.

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

2005.

SUBCHAPTER C. POWERS AND DUTIES OF RISK MANAGERS

Sec. 4153.101. PLACE OF BUSINESS. A license holder shall

maintain a place of business in this state that is:

(1) accessible to the public; and

(2) located at the place at which the license holder principally

conducts business.

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

2005.

Sec. 4153.102. NOTIFICATION OF CHANGE OF PLACE OF BUSINESS. A

license holder who changes the address of the license holder's

place of business from the address that appears on the license

shall notify the department of that change as provided by

department rules.

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

2005.

SUBCHAPTER D. DISCIPLINARY ACTION

Sec. 4153.151. GROUNDS FOR DISCIPLINARY ACTION. The department

may discipline a license holder or deny an applicant a license

under Subchapter C, Chapter 4005:

(1) for any cause for which, if known by the department,

issuance of the license could have been refused; or

(2) if the license holder or applicant:

(A) wilfully or knowingly violates this chapter, an insurance

law of this state, or a department rule;

(B) obtains or attempts to obtain a license through wilful

misrepresentation or fraud;

(C) fails the examination required by this chapter; or

(D) is convicted on final judgment of a felony.

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

2005.

Sec. 4153.152. LICENSE SUSPENSION. (a) An order suspending a

license must specify the duration of the suspension period. The

department may not suspend a license for a period of more than 12

months.

(b) A license holder whose license is revoked or suspended shall

surrender the license to the commissioner at the commissioner's

request.

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

2005.

Sec. 4153.153. REINSTATEMENT OR REISSUANCE OF LICENSE. The

commissioner may not reinstate the license of or reissue a

license to a person whose license is suspended or revoked or to

whom the department refuses to issue a renewal certificate until

the first anniversary of the date of the suspension, revocation,

or refusal to renew.

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

2005.