TITLE insurance

Part I. Texas Department of Insurance

Chapter 19. Agent's Licensing

Subchapter I. Licensing Fees

28 TAC §19.802

The Commissioner of Insurance adopts amendments to §19.802 concerning the amounts of fees for original and renewal applications and examinations for various licensees. The amendments are adopted with changes to the proposed text as published in the July 9, 1999, issue of the Texas Register (24 TexReg 5145).

The amendments to the fee schedule are necessary to update the examination fees for a Group II insurance agent license to accurately reflect the statutory ceiling on the examination fee, to delete the fee schedules for certain license types which the department no longer issues or which are provided for in other official publications and to conform the rule to the specialty agent licensing framework established by the 76th Legislature (1999) in Senate Bill 957.

The change to the text involves the addition of an appointment fee to the specialty license fee schedule. Following publication of the proposed rule, the Department recognized the specialty license appointment fee was inadvertently omitted. The appointment fee is necessary to the specialty license because license holders may solicit a broad range of insurance products underwritten by more than one insurer.

The amendments to §19.802 operate to decrease the amount of fees for a qualifying examination for a Group II insurance agent license. The fees in the rule were set at $50. The fees for a qualifying examination for a Group II license are subject to a statutory maximum of $20.

The Health Maintenance Organization agent license type was consolidated into the Legal Reserve agent license by the 75th Legislature. As a result, this license type no longer exists and the fee schedule for the license has been removed from the rule.

The fees for Title Agent, Escrow Officer and Direct Operation licenses were removed from the fee rule because these fees are provided for in the Title Manual. The Title Manual is adopted by the Department of Insurance in accordance with the Texas Administrative Procedures Act and contains the regulations applicable to persons engaged in the title insurance business in this state. As a result, the title agent, escrow officer and direct operation license fees in this rule are duplicative and were removed from the rule.

The 76th Texas Legislature created a new specialty license type and authorized the Department of Insurance to set the license fees in amounts necessary to administer the license. The rule contains provisions which add these new fees to the license fee schedule.

No comments were received.

The amendments are adopted under the Insurance Code, Articles 21.07-1 §15, 21.09 §6, and 1.03A. Article 21.07-1 §15 provides the commissioner may establish and amend reasonable rules for the administration of agent licensing. Article 21.09 §6 provides the commissioner may adopt rules as necessary to implement the specialty license. Article 1.03A provides that the Commissioner of Insurance may adopt rules to execute the duties and functions of the Texas Department of Insurance only as authorized by statute.

§19.802. Amounts of Fees.

(a)

With each application for original license or renewal, notice of appointment, or request for qualifying examination, the applicant or licensee shall submit the amount shown in this section. The fees for qualifying examinations and reexaminations only apply if the Texas Department of Insurance does not contract with a testing service for the provisions of these examinations.

(b)

The amounts of fees are as follows:

(1)

Group I, legal reserve life insurance agent:

(A)

original application--$50;

(B)

renewal--$48;

(C)

additional appointment--$10;

(D)

qualifying examination--$20;

(E)

in addition to the original application fee listed in subparagraph (A) of this paragraph, an application filing fee for a temporary license of $100.

(2)

Group II insurance agent:

(A)

original application--$50;

(B)

renewal--$48;

(C)

additional appointment--$10;

(D)

qualifying examination--$20;

(E)

in addition to the original application fee listed in subparagraph (A) of this paragraph, an application filing fee for a temporary license of $100.

(3)

Insurance adjuster:

(A)

original application--$50;

(B)

renewal--$48;

(C)

qualifying examination--$50.

(4)

Insurance adjuster (emergency license): original application--$20.

(5)

Local recording agent:

(A)

original application--$50;

(B)

renewal--$48;

(C)

additional appointment--$16;

(D)

qualifying examination--$50.

(6)

Solicitor:

(A)

original application--$20;

(B)

renewal--$18;

(C)

qualifying examination--$20;

(D)

appointment of a currently licensed solicitor--$10.

(7)

Insurance service representative:

(A)

original application--$20;

(B)

renewal--$18;

(C)

qualifying examination--$20;

(D)

appointment of a currently licensed insurance service representative--$10.

(8)

Managing general agent:

(A)

original application--$30;

(B)

renewal--$48;

(C)

additional appointment--$10.

(9)

Prepaid legal:

(A)

original application--$50;

(B)

renewal--$48;

(C)

additional appointment--$10;

(D)

qualifying examination--$20.

(10)

Surplus lines agent:

(A)

original application--$50;

(B)

renewal--$48;

(C)

qualifying examination--$20.

(11)

Specialty insurance agent:

(A)

original application--$50;

(B)

renewal--$48;

(C)

additional appointment--$10

(12)

Title attorney:

(A)

original application--$50;

(B)

renewal--$48.

(13)

Variable contract agent:

(A)

original application--$50;

(B)

renewal--$48;

(C)

additional appointment--$10.

(14)

Risk manager:

(A)

original application--$50;

(B)

renewal--$48;

(C)

qualifying examination--$50.

(15)

Agricultural agent:

(A)

original application--$50;

(B)

renewal--$50.

(16)

Life and Health insurance counselor:

(A)

original application--$50;

(B)

renewal--$48;

(C)

qualifying examination--$20.

(17)

Nonresident property and casualty agent:

(A)

original application--$50;

(B)

renewal--$48.

(18)

Reinsurance intermediary:

(A)

original application--$500;

(B)

renewal--$500.

(19)

Utilization review agent:

(A)

original application--$2,150;

(B)

renewal--$545.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 12, 1999.

TRD-9905074

Lynda H. Nesenholtz

General Counsel and Chief Clerk

Texas Department of Insurance

Effective date: September 1, 1999

Proposal publication date: July 9, 1999

For further information, please call: (512) 463-6327