CHAPTER 4004. CONTINUING EDUCATION
INSURANCE CODE
TITLE 13. REGULATION OF PROFESSIONALS
SUBTITLE A. GENERAL PROVISIONS
CHAPTER 4004. CONTINUING EDUCATION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 4004.001. DEPARTMENT JURISDICTION EXCLUSIVE. The
department has exclusive jurisdiction of all matters relating to
the continuing education of agents licensed under this code.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1,
2005.
Sec. 4004.002. ADVISORY COUNCIL. (a) The commissioner may
appoint an advisory council to provide the commissioner with
information and assistance in the conduct of the continuing
education program for agents licensed under this title.
(b) If an advisory council is appointed, the council must be
composed of nine members, four of whom must be public members.
(c) A public member is entitled to reimbursement for the
member's travel expenses as provided by Chapter 660, Government
Code, and the General Appropriations Act.
(d) A public member may not:
(1) be an officer, director, or employee of an insurer,
insurance agency, agent, broker, adjuster, or other business
entity regulated by the department;
(2) be a person required to register with the Texas Ethics
Commission under Chapter 305, Government Code; or
(3) be related to a person described by Subdivision (1) or (2)
within the second degree by affinity or consanguinity, as
determined under Chapter 573, Government Code.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1,
2005.
SUBCHAPTER B. AGENT CONTINUING EDUCATION REQUIREMENTS
Sec. 4004.051. GENERAL REQUIREMENTS. (a) Except as provided by
Section 4004.052 or other law, each individual who holds a
license issued by the department shall complete continuing
education as provided by this chapter.
(b) All required continuing education hours must be completed
before the expiration date of the individual's license.
(c) At least 50 percent of all required continuing education
hours must be completed in a classroom setting or a classroom
equivalent setting approved by the department.
(d) The department may accept continuing education hours
completed in other professions or in association with
professional designations in an insurance-related field.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1,
2005.
Sec. 4004.052. EXTENSIONS AND EXEMPTIONS. (a) On the timely
written request of an agent, the department may extend the time
for the agent to comply with the continuing education
requirements of this chapter or may exempt the agent from some or
all of the requirements for a licensing period if the department
determines that the agent is unable to comply with the
requirements because of illness, medical disability, or another
extenuating circumstance beyond the control of the agent. The
commissioner by rule shall prescribe the criteria for an
exemption or extension under this subsection.
(b) An individual who has continuously held for at least 20
years an agent license issued under this code is exempt from the
continuing education requirements of this chapter.
(c) The commissioner by rule may provide for other reasonable
exemptions from the continuing education requirements of this
chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1,
2005.
Sec. 4004.053. REQUIREMENTS BASED ON TYPE OF LICENSE HELD. (a)
An individual who holds a general life, accident, and health
license, a life agent license, a life and health insurance
counselor license, a general property and casualty license, or a
personal lines property and casualty license must complete 15
hours of continuing education annually. If the individual holds
more than one license for which continuing education is otherwise
required, the individual is not required to complete more than 15
continuing education hours annually. An individual who is
required under rules adopted under Chapter 4008 to hold a
certificate to sell a designated product or product line may use
continuing education programs administered under Section 4004.151
to satisfy the annual continuing education requirements under
this subsection.
(b) An individual who holds a limited life, accident, and health
license or a limited property and casualty license must complete
five hours of continuing education annually.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1,
2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
548, Sec. 2.20, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch.
451, Sec. 2, eff. June 19, 2009.
Sec. 4004.0535. CONTINUING EDUCATION CREDIT FOR PARTICIPATION IN
CERTAIN ASSOCIATIONS. (a) The commissioner by rule may
authorize the department to grant not more than four hours of
continuing education credit to an agent who is an active member
of a state or national insurance association.
(b) The commissioner by rule shall:
(1) specify the types of associations that constitute state or
national insurance associations; and
(2) establish reasonable requirements for active participation
in such an association.
(c) An agent may not use continuing education credit granted
under this section to satisfy:
(1) continuing education hours required to be completed in a
classroom setting or classroom equivalent under Section 4004.051;
or
(2) the ethics requirement adopted under Section 4004.054.
(d) An agent who seeks continuing education credit under this
section shall provide to the department in the manner prescribed
by the commissioner a sworn affirmation that the agent is an
active member of a state or national insurance association
described by Subsection (a) and, for the number of continuing
education hours claimed, has:
(1) reviewed educational materials provided by that association;
or
(2) attended educational presentations sponsored by that
association.
Added by Acts 2005, 79th Leg., Ch.
691, Sec. 1, eff. September 1, 2005.
Sec. 4004.054. ETHICS REQUIREMENT. Each individual who holds a
license issued by the department shall complete two hours of
continuing education in ethics during each license renewal
period.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1,
2005.
SUBCHAPTER C. CONTINUING EDUCATION PROGRAMS
Sec. 4004.101. PROGRAM CERTIFICATION. (a) The department shall
certify continuing education programs for agents. The
certification criteria must be designed to ensure that continuing
education programs enhance the knowledge, understanding, and
professional competence of the license holder.
(b) Only a program that satisfies the criteria established by
rule by the commissioner may receive certification.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1,
2005.
Sec. 4004.102. CERTIFICATION FEE. (a) A nonrefundable
certification fee, in an amount set by the commissioner as
necessary to administer this chapter, must accompany each
application for certification of a continuing education program.
(b) The commissioner by rule shall establish the certification
fee based on a graduated scale according to the number of hours
required to complete the program.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1,
2005.
Sec. 4004.103. PROVIDER REGISTRATION; OTHER REQUIREMENTS. (a)
Each continuing education program provider shall register with
the department as a course provider.
(b) The department shall assess a registration fee for each
application for registration as a course provider, set by the
commissioner in an amount necessary for the proper administration
of this chapter.
(c) The commissioner may adopt rules establishing other
requirements for continuing education program providers.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1,
2005.
Sec. 4004.104. INDEPENDENT CONTRACTORS. (a) The department may
enter into agreements with independent contractors under which
the independent contractor certifies and registers continuing
education programs and providers.
(b) The department may require the independent contractors to
correspond directly with providers with regard to the
administration of continuing education programs. The contractors
may collect fees from the providers for administration of the
courses.
(c) Notwithstanding Subsections (a) and (b), the department
retains the authority to establish the scope and type of
continuing education requirements for each type of license.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1,
2005.
SUBCHAPTER D. AGENT EDUCATION PROGRAMS
FOR COMPLEX PRODUCTS
Subchapter D, consisting of Secs. 4004.151 to 4004.152, was added
by Acts 2009, 81st Leg., R.S., Ch.
451, Sec. 3.
For another Subchapter D, consisting of Secs. 4004.151 to
4004.155, added by Acts 2009, 81st Leg., R.S., Ch.
326, Sec. 1, see Sec. 4004.151 et seq., post.
Sec. 4004.151. AGENT EDUCATION PROGRAMS. The department shall
administer continuing education and precertification training
programs required by rules adopted under Chapter 4008.
Added by Acts 2009, 81st Leg., R.S., Ch.
451, Sec. 3, eff. June 19, 2009.
Sec. 4004.152. PROGRAM ADMINISTRATION. (a) The department
shall administer a program described by Section 4004.151 in a
manner consistent with the administration of continuing education
programs under Subchapter C.
(b) The department may enter into agreements with independent
contractors for programs described by Section 4004.151 in the
manner prescribed by Section 4004.104 for continuing education
programs.
Added by Acts 2009, 81st Leg., R.S., Ch.
451, Sec. 3, eff. June 19, 2009.
SUBCHAPTER D. ADDITIONAL CONTINUING EDUCATION REQUIREMENTS
FOR SALE OF MEDICARE-RELATED PRODUCTS
Subchapter D, consisting of Secs. 4004.151 to 4004.155, was added
by Acts 2009, 81st Leg., R.S., Ch.
326, Sec. 1.
For another Subchapter D, consisting of Secs. 4004.151 to
4004.152, added by Acts 2009, 81st Leg., R.S., Ch.
451, Sec. 3, see Sec. 4004.151 et seq., post.
Sec. 4004.151. DEFINITIONS. In this subchapter:
(1) "Medicare advantage plan" means a health benefit plan
operated under the Medicare program as a managed care plan,
special needs plan, or private fee-for-service plan.
(2) "Medicare program" means the federal health insurance
program that is operated under the Health Insurance for the Aged
Act (42 U.S.C. Section 1395 et seq.).
(3) "Medicare-related product" means a Medicare advantage plan,
a Medicare prescription drug plan, or another health plan
operated under the Medicare program, such as a Medicare cost plan
or a Medicare demonstration plan. The term does not include a
Medicare supplement benefit plan regulated under Chapter 1652.
Added by Acts 2009, 81st Leg., R.S., Ch.
326, Sec. 1, eff. September 1, 2009.
Sec. 4004.152. AGENT EDUCATION REQUIREMENTS. (a) Unless an
agent has completed eight hours of professional training related
to a Medicare-related product, an agent may not:
(1) sell, solicit, negotiate, or receive an application or
contract for the Medicare-related product in this state; or
(2) represent an insurer in relation to the Medicare-related
product in this state.
(b) The training required under Subsection (a) may be used to
satisfy the continuing education requirements established under
Subchapter B.
Added by Acts 2009, 81st Leg., R.S., Ch.
326, Sec. 1, eff. September 1, 2009.
Sec. 4004.153. REQUIRED CONTINUING EDUCATION REGARDING MEDICARE
PRODUCTS. (a) This section applies to an agent who:
(1) solicits, negotiates, procures, or collects a premium on a
Medicare-related product; or
(2) represents or purports to represent an insurer, a health
maintenance organization, or a preferred provider organization in
relation to such a Medicare-related product.
(b) Each agent described by Subsection (a) must complete four
hours of continuing education that specifically relates to
Medicare-related products during the agent's two-year licensing
period.
(c) Only training in a program that has been certified by the
department may be used to satisfy the requirements of Subsection
(b).
(d) The continuing education required under Subsection (b) may
be used to satisfy the continuing education requirements
established under Subchapter B.
Added by Acts 2009, 81st Leg., R.S., Ch.
326, Sec. 1, eff. September 1, 2009.
Sec. 4004.154. PROGRAM CERTIFICATION REQUIREMENTS. (a)
Subchapter C, including the authorization to contract with an
independent contractor under Section 4004.104, applies to
programs used to satisfy the requirements of Sections 4004.152
and 4004.153. For the purpose of administering this subchapter,
professional training courses shall be considered to be
continuing education courses under Subchapter C.
(b) The commissioner by rule shall adopt criteria for the
programs used to satisfy the requirements of Sections 4004.152
and 4004.153 that are designed to ensure that an agent has
knowledge, understanding, and professional competence concerning
a Medicare-related product. The rules adopted under this
subsection may incorporate by reference any requirements
established by the Centers for Medicare and Medicaid Services or
any other appropriate federal agency.
Added by Acts 2009, 81st Leg., R.S., Ch.
326, Sec. 1, eff. September 1, 2009.
Sec. 4004.155. NONAPPLICATION OF CERTAIN EXEMPTIONS. The
continuing education exemptions for certain agents established
under Section 4004.052(b) and Section 9.02(e), Chapter 703 (S.B.
414), Acts of the 77th Legislature, Regular Session, 2001, do not
apply to requirements under this subchapter.
Added by Acts 2009, 81st Leg., R.S., Ch.
326, Sec. 1, eff. September 1, 2009.
SUBCHAPTER E. CONTINUING EDUCATION REQUIREMENTS FOR SALE OF
ANNUITIES
Sec. 4004.201. DEFINITION. In this subchapter, "annuity" has
the meaning assigned by Section 1115.002.
Added by Acts 2009, 81st Leg., R.S., Ch.
362, Sec. 1.002, eff. September 1, 2009.
Sec. 4004.202. REQUIRED CONTINUING EDUCATION REGARDING
ANNUITIES. (a) This section applies to a resident agent who:
(1) sells, solicits, or negotiates a contract for an annuity in
this state; or
(2) represents or purports to represent an insurer in relation
to such an annuity.
(b) Each agent described by Subsection (a) must complete four
hours of continuing education annually that specifically relates
to annuities. The annual period under this section must be based
on the agent's license expiration date or another date specified
by the commissioner by rule, and the education requirement under
this subsection must be met within that annual period,
notwithstanding Section 4004.051(b).
(c) The continuing education required under this section may be
used to satisfy the continuing education requirements under
Subchapter B.
Added by Acts 2009, 81st Leg., R.S., Ch.
362, Sec. 1.002, eff. September 1, 2009.
Sec. 4004.203. PROGRAM CERTIFICATION REQUIREMENTS. (a) The
commissioner by rule shall adopt criteria for continuing
education programs used to satisfy the requirements of Section
4004.202. Those criteria must include:
(1) topics related specifically to annuities;
(2) state laws and rules related to annuities, including
requirements adopted under Chapter 1115;
(3) prohibited sales practices regarding annuities;
(4) recognition of indicators that a prospective insured may
lack the short-term memory or judgment to knowingly purchase an
annuity; and
(5) fraudulent and unfair trade practices regarding the sale of
annuities.
(b) Subject matter determined by the commissioner to be
primarily intended to promote the sale or marketing of annuities
does not qualify as continuing education for purposes of this
subchapter.
(c) Subchapter C applies to continuing education programs
described by Subsection (a) and training under Section 1115.056.
Any training program disapproved under Subsection (b) shall be
presumed invalid for certification under Subchapter C unless the
program is approved in writing by the commissioner.
Added by Acts 2009, 81st Leg., R.S., Ch.
362, Sec. 1.002, eff. September 1, 2009.