The Texas Legislature, through HB 1356, created a new, limited license to allow individuals to sell life insurance policies and fixed annuity contracts in the funeral prearrangement area. A person holding this license may not write any coverage or combination of coverages with an initial guaranteed death benefit which exceeds $15,000. An applicant for this license must submit an application and fingerprint card, but no application fee. The application must include the name of the supervising agent or corporation who holds an agent's license as described in Article 21.07-1 as amended and who also holds a permit from the Texas Banking Department allowing the individual or corporation to sell prepaid funeral benefits.
To qualify for this license, an individual must complete five hours of training to be offered by the appointing company. The applicant must also pass an examination promulgated by the Department and administered by the appointing company.
An individual holding this limited license may act as an agent for only one company at a time. If the licensee changes companies, a new application and exam results must be filed.
There is no renewal of this license type. Instead, the license expires when the licensee ceases to act as an agent for the appointing insurance company. Within 15 days of the licensee ceasing to act as its agent, the company shall send written notification of the expiration of the appointment along with the individual's license certificate to the Commissioner.
The provisions of HB 1356 are effective September 1, 1997.
For additional information, contact the Licensing Group of the Department's Regulation and Safety Division at 512-322-3503 or fax number 512-475-1819.
WILLIAM B. ELKJER
DEPUTY COMMISSIONER LICENSING GROUP