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Estimated Two-year Net Impact to General Revenue Related Funds for HB2893, As Introduced: a negative impact of ($1,600,000) through the biennium ending August 31, 2017.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
HB 2893 would make changes to the licensing of insurance agents and adjusters. Specifically, this legislation would require the commissioner of insurance to adopt rules that would allow an agent, insurer, or health maintenance organization (HMO) to appoint more than 500 temporary license holders.
This bill would establish when licenses would expire. Additionally, it would allow the holder of multiple licenses to have one expiration date for all of his or her licenses.
HB 2893 would establish certain penalties for a license holder who fails to complete continuing education classes. It would give the Texas Department of Insurance (TDI) the authority to not renew a license under such circumstances. Additionally, if a person fails to complete continuing education before his or her license expires the fines attributed to that failure would not be allowed to total more than $500.
This legislation would amend the topics to be covered for adjuster continuing education. Lastly, it would also establish guidelines for licensing a nonresident.
This legislation is aimed at alleviating TDI of the issuance of licenses since there has been a significant increase in the number of licensing requests. We support the fact that HB 2893 would allow an agent, insurer, or HMO to appoint more than 500 temporary license holders. Moreover, the provisions that would allow holders of multiple licenses to deal with only one expiration date would be another good change for the betterment of our liberty principles.
We support HB 2893 even though certain provisions of this bill would only reinforce the needless licensing requirements for insurers. Nevertheless, this legislation moves in the right direction for our limited government principle and free market principle.