Changes in Texas Licensing

Changes in licensing provisions in the Texas Insurance Code are scheduled to become effective Sept. 1 and the Independent Insurance Agents of Texas has posted information on its website about how these changes may affect agency operations. According to information on the website, agencies which presently have the licenses they need will not be required to take any action at this time. “You will notice no changes until you need to make a change or your licenses come up for renewal,” states the IIAT. Furthermore, the IIAT advises there are no changes in individual licensing procedures: “An individual applying for a license must still pass a pre-licensing exam and apply for a license with payment of the appropriate fees.” The new provisions which were signed into law by Gov. Rick Perry (Senate Bill 414) in June, represent the first major overhaul since 1951. They are designed to modernize and simplify the agent licensing process, as well as bring Texas laws into compliance with the 1999 federal Gramm-Leach-Bliley Act. That act encourages and promotes interstate uniformity in agent licensing laws and is an outgrowth of Congress’s desire to eliminate state-specific licensing provisions that limit interstate insurance transactions. The provisions make significant changes in license types, licensing requirements, agency ownership provisions and continuing education requirements. The IIAT website, accessible at
http://www.iiat.org/issues/ra_lic_law_qa.htm, includes a series of questions and answers.

Topics Texas