Current through Reg. 50, No. 13; March 28, 2025
(a) The purpose
of this subchapter is to implement Chapter 53, Occupations Code, and sections
and articles of the Insurance Code and Occupations Code that require and
authorize the department to determine a person's fitness for holding a license,
authorization, certification, permit, or registration, or a person's fitness to
have the ability to control licensed, registered, permitted, certificate
holding, and authorized entities, when that person has committed a criminal
offense or has engaged in fraudulent or dishonest activity. This subchapter
also establishes the procedure by which the department may obtain criminal
history information on persons applying for a license, authorization,
certification, permit, or registration, or acquiring the ability to control an
entity holding or seeking a license, authorization, certificate, permit, or
registration. To effect this implementation the department has developed
guidelines in §
1.502 of this subchapter (relating
to Licensing Persons with Criminal Backgrounds) identifying the types of
criminal offenses that directly relate to the duties and responsibilities of
licensed and authorized insurance activities which are of such a serious nature
that they are of prime importance in determining the person's fitness for
licensure, authorization, certification, permit or registration, or control of
a licensed, registered, permitted, certificate holding, or authorized
entity.
(b) Section
1.502 of this subchapter applies
to the following persons:
(1) applicants for,
or holders of, any license, registration, permit, authorization, or
certification, including temporary or training licenses or certificates, as
agents, adjusters, public insurance adjusters, counselors, risk managers,
reinsurance intermediaries, title agents, title escrow officers, title
attorneys, utilization review agents, independent review organizations,
viatical and life settlement registrants, workers' compensation health care
networks, management contractors, and administrators, under the following
Insurance Code provisions:
(G) Chapter 2651 Subchapter A;
(U) any other provision providing for any
type of license, registration, certification, permit, or authorization that the
department may deny or revoke because of a criminal offense of the applicant or
license holder;
(2)
applicants for, or holders of, a license, registration, permit or authorization
issued by the State Fire Marshal's Office, including the following provisions:
(A) Insurance Code Chapter 6001;
(B) Insurance Code Chapter 6002;
(C) Insurance Code Chapter 6003;
(D) Occupations Code Chapter 2154;
or
(E) any other provision
providing for any type of license, registration, or authorization that the
State Fire Marshal's Office may deny or revoke because of a criminal offense of
the applicant or license holder;
(3) those who are, become, or have similar
responsibilities to principals, partners, officers, directors, or controlling
shareholders, including limited liability company members and managers, of
entities that are applicants for, or holders of, a license, authorization,
permit, certification, or registration under provisions specified in paragraphs
(1) and (2) of this subsection and from whom biographical information is
required;
(4) with regard to
insurance companies, health maintenance organizations, holding companies, and
other related entities, an individual who is required to provide biographical
information and who:
(A) is the applicant, if
the applicant is an individual, or an officer, director, or controlling
shareholder of the applicant seeking an authorization as an insurer as
described in Insurance Code Chapter 801 or an authorization under Insurance
Code Chapters 822, 823, 841, 843, 844, 846, 2551, or 2552;
(B) becomes an officer, director, or
controlling shareholder of an entity authorized as an insurer as described in
Insurance Code Chapter 801 or an entity authorized under Insurance Code
Chapters 822, 823, 841, 843, 844, 846, 2551, or 2552; or
(C) is the applicant if such person is an
individual, or the chairman of the board, chief executive officer, president,
chief financial officer, treasurer, and controller of the applicant if the
applicant is not an individual, for each applicant under §
7.209 of this title (relating to
Form A);
(5) each person
who is required to file biographical information under §
5.6403 of this title (relating to
Application for Initial Certificate of Approval); and
(6) each individual whose biographical
information is required to be filed with the department under the Insurance
Code §
7001.005(a)(2)
(relating to Application for Registration and Renewal of Registration) and each
individual for whom the commissioner may conduct a criminal background check
under the Insurance Code §
7001.008 (relating to
Criminal Background Check).
(c) As used in §
1.502 of this subchapter, the
terms "license holder," "licensee," and "authorization holder" shall include
all persons listed in subsection (b) of this section.
(d) As used in §
1.502 of this subchapter, the
terms "license" and "authorization" shall include all types of licenses,
registrations, certificates, permits, or authorizations listed in subsection
(b) of this section.