On September 1, 2021, Texas HB 4030 went into impact, bringing with it a number of vital adjustments for Texas licensed (resident and non-resident) insurance coverage professionals. As summarized under, HB 4030 implements a number of adjustments to the Texas Insurance coverage Code. The adjustments have an effect on subagent designations, life and medical health insurance counselors, insurance coverage service representatives, house workplace salaried staff, momentary licenses, provisional licenses, persevering with training licenses, and nonresident brokers and adjusters. You may learn the total textual content of the invoice right here.
Efficient September 1, 2021:
TDI No Longer Points or Acknowledges Insurance coverage Service Consultant Licenses
All energetic insurance coverage companies consultant licenses issued earlier than June 1, 2021 have transformed to normal property and casualty insurance coverage agent licenses and affected licenses should adjust to all necessities of the transformed license to maintain the license energetic and in good standing.
Any insurance coverage companies consultant license issued on or after June 1, 2021 and September 1, 2021 might not be renewed on expiration of the license and won’t convert to every other license sort.
TDI No Longer Points or Acknowledges Life and Well being Insurance coverage Counselor Licenses
- All energetic life and medical health insurance counselor licenses issued earlier than June 1, 2021 have transformed to normal life and well being agent licenses and affected licenses should adjust to all necessities of the transformed license to maintain the license energetic and in good standing.
- Any life and medical health insurance counselor license issued on or after June 1, 2021 and September 1, 2021 might not be renewed on expiration of the license and won’t convert to every other license sort.
Registered Dwelling Workplace Salaried Workers Are No Longer Exempt from Licensing Necessities
- All house workplace salaried worker registrations are void and stop to exist. Any former house workplace salaried worker registrant partaking within the enterprise of insurance coverage after September 1, 2021 should comply with the necessities of the Insurance coverage Code and every other relevant Texas legal guidelines.
TDI No Longer Acknowledges Subagents
- Texas now not acknowledges “subagents.” Because of this insurers should now instantly appoint all brokers performing on its behalf. All references to subagent have been faraway from Title 13.
TDI Can Quickly Droop the Issuance of Provisional Agent Permits
- TDI can droop the issuance of provisional permits to candidates being thought-about for appointment if: (1) TDI’s processing time for license purposes has not exceeded 21 days in any month within the previous 90 days earlier than the suspension; and (2) TDI gives discover on its web site and to candidates for provisional licenses that provisional license purposes are briefly suspended.
Different Licensing Modifications
Licensed businesses which can be firms or partnerships are now not required to register with TDI every location from which they’ll interact in enterprise in Texas.
Licensed brokers at the moment are required to finish three hours of continuous training in ethics throughout every license renewal interval (was beforehand two).
Short-term licenses at the moment are legitimate for 180 days as an alternative of 90 days.
TDI can deny purposes for the issuance of a short lived license if it determines any grounds exist for denying the license or instituting a disciplinary motion beneath Part 4005.101 of the Insurance coverage Code (“Grounds for License Denial or Disciplinary Motion”) or Chapter 53 of the Occupations Code (“Penalties of Felony Conviction”).
Nonresident agent licenses are routinely suspended, canceled, or revoked if the licensee’s house state suspends, cancels, or revokes the licensee’s corresponding resident license.
Nonresident brokers who transfer to Texas are now not required to offer a clearance letter from their prior house state in an effort to transition to a Texas resident license.
Nonresident public adjusters are now not required to offer a certificates or letter of authorization from their state of residence in an effort to get hold of a Texas nonresident license.