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You are here: Home . rules . 2006 . 1003d-059

SUBCHAPTER H. LICENSING OF PUBLIC INSURANCE ADJUSTERS

28 TAC §19.711

1. INTRODUCTION. The Commissioner of Insurance adopts an amendment to §19.711, concerning the fingerprint requirement for public insurance adjuster license applicants and other individuals required to file biographical information in connection with a public insurance adjuster license. The amendment is adopted without changes to the proposed text published in the August 4, 2006 issue of the Texas Register (31 TexReg 6178).

2. REASONED JUSTIFICATION. The adopted amendment is necessary to conform the existing fingerprint requirement for such individuals with the new fingerprint submission requirement that the Department is adopting in amended §1.501 and new §§1.503 - 1.509, which are also published in this edition of the Texas Register. The adopted amendment to §19.711 is also necessary to change the Insurance Code reference in this section from Article 21.07-5 to Chapter 4102 in accordance with the nonsubstantive revision of the Insurance Code enacted by the 79th Legislature, effective September 1, 2005.

In the proposal, the Department solicited comments as to whether having the amendment become effective no earlier than 90 days following the date the amendment is adopted by the Commissioner was a viable effective date. The Department received no comments concerning the effective date and thus considers that the 90 day time period for implementation is adequate. The Department also considers a date certain to be the most effective means for determining when individuals will be required to comply with the new fingerprint requirements, and therefore, the Department has determined that this amendment shall be effective January 1, 2007, the same date on which the new fingerprint requirements adopted in amended §1.501 and new §§1.503 - 1.509 become effective.

3. HOW THE SECTION WILL FUNCTION. The amended §§19.711 requires public insurance adjuster license applicants and other individuals required to file biographical information in connection with a public insurance adjuster license to comply with the new fingerprint requirement in amended §1.501 and new §§1.503 - 1.509, which are also published in this edition of the Texas Register.

4. SUMMARY OF COMMENTS. The Department did not receive any comments on the proposed amendment.

5. STATUTORY AUTHORITY. The amendment is adopted under the Occupations Code Chapter 53; Government Code Chapter 411 and the Insurance Code Chapters 4001, 4102, and 36. Occupations Code Chapter 53 states the general procedure a licensing authority must employ when considering the consequences of a criminal record on granting or continuing a person's license, registration or authorization. Occupations Code §53.025 authorizes a licensing authority to issue guidelines relating to its practice under Chapter 53. Government Code §411.106 authorizes the Department to receive criminal history information from the DPS regarding insurance company principals and officers and applicants for any license, permit, or other authorization issued by the Department to engage in a regulated activity under the Insurance Code. Government Code §§411.083 and 411.087 authorize the Department to obtain, through the DPS, criminal history information from the FBI on those individuals described in Government Code §411.106. Insurance Code §4001.103 authorizes the Department to request a complete set of fingerprints from an applicant for a license issued under Insurance Code Title 13. Insurance Code §§4102.053(a)(11) and 4102.054(a)(12) authorize the Department to request a complete set of fingerprints from resident and nonresident public insurance adjuster license applicants. Further, for a partnership or corporation applying for, or maintaining, a public insurance adjuster license, Insurance Code §§4102.055(b) and 4102.056(b) authorize the Commissioner to adopt rules analogous to the provisions of Insurance Code Chapter 4001 concerning the licensure of any business entity organized under the laws of Texas and any business entity organized under the laws of another state. The Department has adopted §19.704(c)(7) and (i) of this title (relating to Public Insurance Adjuster Licensing) which require the Department to find that the public insurance adjuster license applicant's officers, directors, partners, and other persons with a right to control the licensee have not committed an act for which licensure can be denied or revoked under Insurance Code Chapters 4005 and 4102. Insurance Code §4102.004 authorizes the Commissioner to adopt rules to implement Insurance Code Chapter 4102. Insurance Code §36.001 provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.

6. TEXT.

§19.711. Fingerprint Requirement.

Any individual who submits to the Department a new application to be licensed or registered under Insurance Code Chapter 4102 and any individual from whom biographical information is required under §19.704 of this subchapter (relating to Public Insurance Adjuster Licensing) shall comply with the requirements of Chapter 1,Subchapter D of this title (relating to Effect of Criminal Conduct).



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