SUBCHAPTER I. LICENSING FEES 28 TAC §19.801

The Commissioner of Insurance adopts amendments to §§19.801 and 19.802 and new §19.803 concerning licensing, registration, examination, and appointment fees. The sections are adopted without changes to the proposed text as published in the July 26, 2002 issue of the Texas Register (27 TexReg 6623), and the correction to §19.801(a)(1) published in the August 16, 2002 issue of the Texas Register (27 TexReg 7651) and will not be republished.

The sections are necessary to implement license type and fee changes required by amendments to the Insurance Code by Senate Bill 414, 77th Legislature, to maintain effective regulation of insurance licensees by establishing fees sufficient to cover department administration costs, which include licensure, enforcement of disciplinary requirements, and market conduct examinations, among other regulatory protections and the Texas OnLine subscription fee created by amendments to Government Code §2054.252(g).

Adopted amendments to §19.801 instruct original license applicants and full-time home office salaried employee registrants when and to whom fee payments are required to be made and provide that fees are not refundable, transferable, or reducible except as provided. Amendments to §19.802(b) list the general lines - life, accident, and health agent, general lines - property and casualty agent, limited lines agent, county mutual agent, funeral prearrangement life insurance agent, and life insurance not exceeding $15,000 agent license types and full-time home office salaried employee registration, and set application, renewal, and appointment fees for these license types and the full-time home office salaried employee registration fee. The amendments to §19.802(b) also set all department administered examination fees at $50 subject to the provision in the existing rule that the examination fees will only apply if the department does not contract with a designated testing service.

As required under Government Code §2054.152, the amendments to §19.802(b) reflect the $3 subscription fee that has been assessed against each license type that is renewable online through the Texas OnLine Authority.

The amendments to §19.802(b)(7)(A) and (B) increase the original application and renewal fee for insurance service representatives to $50. The amendments to §19.802(b)(8)(A) and (E) increase the original application fee for managing general agents to $50 and set an emergency application fee of $50. Amendments to §19.802(b)(11) clarify that each of the six license authorities available for specialty license holders requires a separate license and renewal fee. The amendment to §19.802(b)(18) sets a standard fee for the expanded range of temporary license applications authorized under Insurance Code Article 21.07 §3A. The amendments to §19.802(c) clarify the fee requirements for the limited lines agent license type authorized by Insurance Code Articles 21.07-1 §4 and 21.14 §6. The amendments to §19.802(d) clarify the fee requirements for the general lines agents appointed as subagents. The amendment to §19.802(e) clarifies that fees are the same for residents and nonresidents and that Insurance Code Article 21.11 does not create a license type.

Section §19.803 clarifies that the increases in renewal fees required by the Government Code §2054.252 will affect only licensees having a license renewal date on or after November 1, 2002, and sets the renewal fee for licensees with license renewal dates before that date.

No comments were received.

The amendments and new sections are adopted under Government Code §2054.252 and Insurance Code Articles 1.14-2, 21.01, 21.01-1, 21.01-2, 21.07, 21.07-4, 21.07-7, 21.09, 21.14-1, 21.14-2 and §36.001. Government Code §2054.252 (g) requires the department to raise licensing fees in an amount sufficient to cover the Texas OnLine Authority subscription fee cost. Insurance Code Article 1.14-2 §§3A and 4(b) authorize the department to charge and set licensing fees for surplus lines agent licenses and adopt necessary rules. Article 21.01 §4 authorizes the commissioner to adopt rules necessary to implement Insurance Code Chapter 21, Subchapter A. Article 21.01-1 §2(b) authorizes the department to charge and set agent licensing examination fees. Article 21.01-2 §1A(b) authorizes the department to set license renewal fees. Article 21.07 §6 (a) and (d) authorize the department to charge and set agent appointment fees. Article 21.07 §6C(a) authorizes the department to collect a nonrefundable license fee from each agent of an insurance carrier writing business in this state. Article 21.07 §6C(c) authorizes the department to set fees that are reasonable and necessary to implement Insurance Code Chapter 21, Subchapter A. Article 21.07-2 §5(a) states that life and health insurance counselors are subject to the same licensing requirements as are applicable to agents under Insurance Code Chapter 21, Subchapter A. Article 21.07-4 §§14 and 24 authorize the department to establish licensing and examination fees for adjusters and adopt necessary rules. Article 21.07-7 §§4 and 11 authorize the department to establish licensing fees for reinsurance intermediary managers and brokers and adopt rules. Article 21.09 §1(b)(3) authorizes the department to establish licensing fees for specialty insurance agents. Article 21.14-1 §§7 and 15 authorize the department to establish licensing and examination fees for risk managers and adopt rules. Article 21.14-2 §§2 and 5 authorize the department to establish an appointment fee for agricultural insurance agents and adopt rules. Section 36.001 provides that the Commissioner of Insurance may adopt rules to execute the duties and functions of the Texas Department of Insurance as authorized by statute.

§19.801. General Provisions Regarding Licensing Fees and License Renewal.

(a) Original application.

(1) Applicants for an original license required to qualify for the license type by examination through the department's designated testing service, including temporary licenses, shall submit the required original application fee, the testing service's examination fee and, if applicable, the temporary license fee, at the time of filing an application for license and/or request for examination, to the department's designated testing service.

(2) Applicants for an original license not required to qualify for the license type by examination from the department's designated testing service, or all applicants in the event the department does not have a designated testing service, shall submit all required fees at the time of filing an application for license and/or request for examination to the department.

(3) Insurance carriers utilizing registered home office salaried employees will submit the registration fee to the department at the time of filing the registration application.

(b) Renewal of license.

(1) A "completed application" is one that provides every piece of information required of the licensee by the application form.

(2) An applicant for renewal of a license which has neither expired nor been suspended or revoked shall submit the required renewal fee and completed application for renewal.

(3) The department may designate one expiration date per licensee, to apply to all licenses held by that licensee. The designated date shall be the date on which one license would normally expire. For licenses which normally would expire after the newly designated expiration date, renewal fees shall be reduced pro rata on a monthly basis. The fee reduction shall be for the renewal immediately following the institution of the designated expiration date. On each subsequent renewal, the licensee shall pay the full renewal fee for each license.

(c) Appointment. The fee for appointment of a currently licensed general lines agent as subagent by another general lines agent, or for appointment of an agent to represent additional insurers, health maintenance organizations, or nonprofit legal services corporations, shall accompany the notice of appointment. An appointment fee is not required for the first appointment filed with the original license application.

(d) Submission of fees. All fees shall be submitted by check or money order made payable to the Texas Department of Insurance, except for applicants who must qualify by examination, where the application is to be submitted to the department's designated testing service, as provided under the Insurance Code, Article 21.01-1, or if the license is renewable over the internet, where the renewal application is to be submitted under the Texas OnLine Project, in which case fees shall be submitted as directed by the designated testing service or the Texas OnLine Authority. Should the department authorize other online or electronic original applications or other transactions, persons shall submit fees with the transaction as directed by the department, the Texas OnLine Authority, or the department's designated service provider.

(e) All fees are fully earned at the time the application, registration, and/or appointment is filed with the department, or the department's designated testing service, and are not refundable or transferable to another application, registration or appointment whether such fee is submitted to the department or the department's designated testing service. These fees shall not be reduced for any reason, except when the term of the license is prorated as set forth under subsection (b)(3) of this section.

(f) All fees for examination, whether administered by the department or the department's designated testing service, are fully earned when the examination is scheduled and are not refundable or transferable to any other applicant or examination, except where approved by the department as provided under Insurance Code Article 21.01-1 §2(b). A separate fee is required for each new examination and reexamination. Examination fees shall not be reduced for any reason.

§19.802. Amount 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) General lines - life, accident, and health agent: