Texas Register, Volume 10, Number 44, Pages 1807-1878, June 7, 1985 Page: 1,855
1807-1878 p. ; 28 cm.View a full description of this periodical.
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government or small businesses as a
result of enforcing the rule as proposed.
Mr. Morris also has determined that for
each year of the first five years the rule
is in effect the public benefit anticipated
as a result of enforcing the rule as pro-
posed is the the amending of a rule to
reflect properly existing statutory law.
There is no anticipated economic cost to
individuals who are required to comply
with the rule as proposed.
Comments on the proposal may be sub-
mitted to Millard Morris, Assistant Chief
Examiner, State Board of Insurance, 1110
San Jacinto Street, Austin, Texas 78786.
The amendments are proposed under the
Insurance Code, Article 3.01, 10; Article
9.47, 2; and Article 16.24, which relates
to the treatment of data processing sys-
tems, office equipment, furniture, ma-
chines, and labor saving devices as ad-
mitted assets of varous types of insurers.
.212. Admitted Assets-Insurance
Code, Article 3.01, 10(b).
(a) (No change.)
(b) The items enumerated in Article
3.01, 10(b), may be reported as admissible
assets only by insurers subject to that law
including [in] life insurance companies, ti-
tle insurance companies, local mutual aid
associations, local mutual burial associa-
tions, statewide mutual assessment corpora-
tions, farm mutual insurance companies,
and stipulated premium companies. No
other company may include these items as
admitted assets. Any asset taken for items
enumerated in Article 3.01 should be refer-
red to as an "admitted asset" rather than
an "investment." The aggregate assets of
both the mortuary and expense funds may
be considered as the basis for calculating the
5.0% limitation in determining the amount
which may be admitted by a company reg-
ulated by the Insurance Code, Chapter 14.
Only equipment, furniture, machines, and
labor-saving devices used in the offices may
be considered as admissible assets. Motor
vehicles, aircraft, other transportation
equipment, and any equipment other than
that normally construed as office equipment
are excluded and are not admissible.
This agency hereby certifies that the pro-
posal has been reviewed by legal counsel
and found to be within the agency's au-
thority to adopt.
Issued in Austin, Texas, on May 29, 1985.TRD-854750
James W. Norman
Chief Clerk
State Board of
InsuranceEarliest possible date of adoption:
July 8, 1985
For further information, please call
(512) 475-2950.General Provisions
Agents Licensing
059.21.01.111
The State Board of Insurance proposes
an amendment to Rule 059.21.01.111, con-
cerning certain qualifications necessary
for a person to become an agent for var-
iable life insurance and variable annuity
products. This amendment permits quali-
fication under subsection (b) of the rule
by successful completion of the National
Association of Securities Dealer Series
1 examination. The Series 1 examination
is no longer administered. Its inclusion
in the rules will permit persons who have
heretofore successfully completed it to
qualify under subsection (b) of the rule.
The board believes that successful com-
pletion of the Series 1 examination meets
the examination standards necessary un-
der subsection (b).
Woody Pogue, deputy insurance commis-
sioner, has determined that for the first
five-year period the rule will be in effect
there will be no fiscal implications for
state or local government as a result of
enforcing or admnistering the rule. The
amendment will result in a savings to
small businesses to the extent that a per-
son who is a small business or is con-
nected with a small business qualifies
under subsection (b) of the rule by hav-
ing already successfully completed the
Series 1 examination.
Mr. Pogue also has determined that for
each year of the first five years the rule
as proposed is in effect the public bene-
fit anticipated as a result of enforcing the
rule as proposed is a rule which proper-
ly takes into account all examination
qualifications appropriate for licensure
as a variable contract agent.
There is expected to be a savings to in-
dividuals required to comply with the
amendment to the extent that the in-
dividual qualifies under subsection (b) of
the rule by having successfully com-
pleted the Series 1 examination.
Comments on the proposal may be sub-
mitted to Woody Pogue, Deputy Insur-
ance Commissioner, State Board of In-
surance, 1110 San Jacinto Street, Austin,
Texas 78786.
The amendment is proposed under the
Insurance Code, Article 3.75, 8, pur-
suant to which the State Board of In-
surance may establish such rules as are
reasonable and appropriate for the im-
plementation of the Insurance Code, Ar-
ticle 3.75, including, but not limited to,
the licensing of agents.
.111. Securities Dealer's License. As
a condition of licensure, a variable contract
agent (hereinafter referred to simply as
"agent") must meet the following require-
ments:
(a) (No change.)
(b) provide evidence of successful
completion of an examination on generalsecurities principles administered by the Na-
tional Association of Securities Dealers on
either:
(1) Series 1;
(2)[(1)] Series 2;
(3)[(2)] Series 6; or
(4)[(3)] Series 7; and
(c) (No change.)
This agency hereby certifies that the pro-
posal has been reviewed by legal counsel
and found to be within the agency's au-
thority to adopt.
Issued in Austin, Texas, on May 29, 1985.TRD-854752
James W. Norman
Chief Clerk
State Board of
InsuranceEarliest possible date of adoption:
July 8, 1985
For further information, please call
(512) 475-2950.Unfair Practices Based on Sex
or Marital Status
059.21.21.107
The State Board of Insurance proposes
amendments to Rule 059.21.21.107, which
is one in a series of rules concerning un-
fair practices in insurance based on sex
or marital status. This rule provides
generally that coverage in individual
policies must be continued for an in-
dividual who otherwise loses coverage
due to a change in marital status. It pro-
vides in part that for coverage other than
life and accident and health, the incep-
.tion date of new coverage need not pre-
cede the earliest date required to main-
tain continuity of coverage, and that such
coverage shall have the same expiration
date as the policy under which coverage
was issued prior to a change in marital
status. The board has determined to
amend the later provision respecting the
expiration date to permit the insured and
insurer to agree on a later expiration date
than the same expiration date as the cov-
erage which was issued prior to a change
in marital status.
James W. Norman, chief clerk, has deter-
mined that for the first five-year period
the rule will be in effect there will be no
fiscal implications for state or local
government or small business as a result
of enforcing or administering the rule. A
later expiration date is purely voluntary.
If chosen, it would involve a longer period
of exposure to the insurer and a likely in-
creased premium to the insured. The
amounts of each would depend on the
length of the longer period of exposure
and the charge for the particular cov-
erage.
Mr. Norman also has determined that for
each year of the first five years the rule
as proposed is in effect the public bene-4 Proposed Rules June 7, 1985 10 TexReg 1855
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Texas. Secretary of State. Texas Register, Volume 10, Number 44, Pages 1807-1878, June 7, 1985, periodical, June 7, 1985; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth243695/m1/51/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.