28 TAC §19.802
The Texas Department of Insurance proposes amendments to
§19.802 concerning the amounts of fees for original and renewal applications
and examinations for various licensees. This proposal to amend the fee rule
is necessary to update certain examination fees to accurately reflect the
statutory ceiling on agent licensing examination fees and to conform the rule
to the specialty agent licensing framework established by the 76th Legislature
in Senate Bill 957.
Rose Ann Reeser, senior associate commissioner of regulation and safety,
has determined that for each year of the first five years the proposed sections
will be in effect, there will be no fiscal impact to state and local governments
as a result of the enforcement or administration of the proposed rule. There
will be no measurable effect on local employment or the local economy as a
result of the proposal.
Ms. Reeser has determined that for each year of the first five years the
proposed sections are in effect, the anticipated public benefit of enforcing
the sections is that the license fees assessed in the proposed rule are sufficient
to cover the costs of the administration of the license which includes licensure,
enforcement of disciplinary requirements and market conduct examinations among
other protections. These provisions aid in the protection of the insurance
consumers of this state by ensuring the proper training and oversight of persons
engaged in the sale of insurance products to the public. Ms. Reeser estimates
the department will receive approximately 10,000 applications for the newly
created specialty license. The economic costs to persons required to comply
with the sections will be $50 per original application in the first year the
proposed sections are in effect and $48 for each biennial renewal in the third
and fifth years following adoption. The costs to apply for or renew an agent
license will be identical for a large or small business. The cost of labor
per hour is not affected by the proposed section and thus there is no disproportionate
economic impact on small businesses.
Comments on the proposal must be submitted within 30 days after publication
of the proposed section in the
Texas Register
to Lynda H. Nesenholtz, Chief Clerk, Mail Code 113-2A, Texas Department of
Insurance, P. O. Box 149104, Austin, Texas 78714-9104. An additional copy
of the comment must be submitted to Linda Von Quintus, Deputy Commissioner,
Regulation and Safety, Mail Code 107-2A, Texas Department of Insurance, P.O.
Box 149104, Austin, Texas 78714-9104. Any requests for a public hearing should
be submitted separately to the Office of the Chief Clerk.
The amendments are proposed 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.
The following statutes and regulations are affected by the proposed amendments:
Insurance Code, Articles 1.14-2; 21.01-1; 21.01-2; 21.07; 21.07-1; 21.07-2;
21.07-3; 21.07-4; 21.09; 21.11; 21.14; 21.14-1. Texas Administrative Code:
28 TAC §23.5.
§19.802.Amounts of Fees.
(a)
(No change.)
(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
[
50
];
(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)
Health maintenance
organization agent (basic health care plan):]
[
(A)
original application--$50;]
[
(B)
renewal--$48;]
[
(C)
additional appointment--$10;]
[
(D)
qualifying examination - $20.]
[
(4)
Health maintenance
organization agent (single health care service plan):]
[
(A)
original application--$50;]
[
(B)
renewal--$48;]
[
(C)
additional appointment--$10.]
(3)
[
(5)
] Insurance adjuster:
(A)
original application--$50;
(B)
renewal--$48;
(C)
qualifying examination--$50.
(4)
[
(6)
] Insurance adjuster
(emergency license): original application--$20.
(5)
[
(7)
] Local recording agent:
(A)
original application--$50;
(B)
renewal--$48;
(C)
additional appointment--$16;
(D)
qualifying
examination
[
reexamination
]--$50.
(6)
[
(8)
] Solicitor:
(A)
original application--$20;
(B)
renewal--$18;
(C)
qualifying
examination
[
reexamination
]--$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)
[
(9)
] Managing general
agent:
(A)
original application--$30;
(B)
renewal--$48;
(C)
additional appointment--$10.
(9)
[
(10)
] Prepaid legal:
(A)
original application--$50;
(B)
renewal--$48;
(C)
additional appointment--$10;
(D)
qualifying examination--$20.
(10)
[
(11)
] Surplus lines
agent:
(A)
original application--$50;
(B)
renewal--$48;
(C)
qualifying examination--$20.
(11)
[
(12)
]
Specialty
[
Title
] insurance agent:
(A)
original application--$50;
(B)
renewal--$48.
[
(13)
Title insurance
escrow officer:]
[
(A)
original application--$50;]
[
(B)
renewal--$48.]
(12)
[
(14)
] Title attorney:
(A)
original application--$50;
(B)
renewal--$48.
[
(15)
Direct operation
license:]
[
(A)
original application--$50;]
[
(B)
renewal--$48.]
(13)
[
(16)
] Variable contract
agent:
(A)
original application--$50;
(B)
renewal--$48;
(C)
additional appointment--$10.
(14)
[
(17)
] Risk manager:
(A)
original application--$50;
(B)
renewal--$48;
(C)
qualifying examination--$50.
(15)
[
(18)
] Agricultural agent:
(A)
original application--$50;
(B)
renewal--$50.
(16)
[
(19)
] Life
and
Health
insurance counselor:
(A)
original application--$50;
(B)
renewal--$48;
(C)
qualifying examination--$20.
(17)
[
(20)
] Nonresident property
and casualty agent:
(A)
original application--$50;
(B)
renewal--$48.
(18)
[
(21)
] Reinsurance intermediary:
(A)
original application--$500;
(B)
renewal--$500.
(19)
[
(22)
] Utilization review
agent:
(A)
original application--$2,150;
(B)
renewal--$545.
This agency hereby certifies that the proposal
has been reviewed by legal counsel and found to be within the agency's legal
authority to adopt.
Filed with the Office of the Secretary of State on June
24, 1999.
TRD-9903766
Lynda H. Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: August 8, 1999
For further information, please call: (512) 463-6327