Filings Made Easy for Life, Health and Licensing

1. 1 Filings Made Easy for Life, Health and Licensing 2008 Life, Health and Licensing Presentation - Licensing

2. 2 Topics Continuing Education Contractor Fingerprinting Electronic Processing Rebating Life Insurance License (New!)

3. 3 Continuing Education ContractorRequest for Proposal 100% monitoring of CE compliance Online CE class roster submissions Online CE provider and course applications Online status of individual CE compliance status Disregarding the name of the program, LHL, the Licensing Division handles the licensing of agents, adjusters and other related license types in both the Life Health and Property Casualty lines of insurance � a total of 24 license types effective September 1, 2007. The Licensing division oversees the licensing and regulation of insurance agents, adjusters, risk managers, life insurance counselors, insurance service representatives, reinsurance intermediaries, third-party administrators (TPAs), premium finance companies, and persons involved in selling insurance products in travel agencies, self-service storage facilities, retail establishments, telecommunications, and rental car companies. The Licensing Division is efficient in the average processing time for the over 700,000 filings processed each year. In the past few years, the Licensing Division�s average processing time has moved from 3.0 days in Fiscal Year 2003 to 2.2 days in Fiscal Year 2004 and has been maintained at the 2.2 days level since then. There were 370,218 active licenses as of August 31, 2007. The Licensing Division is a production unit which processes high volumes steadily throughout each year. Disregarding the name of the program, LHL, the Licensing Division handles the licensing of agents, adjusters and other related license types in both the Life Health and Property Casualty lines of insurance � a total of 24 license types effective September 1, 2007. The Licensing division oversees the licensing and regulation of insurance agents, adjusters, risk managers, life insurance counselors, insurance service representatives, reinsurance intermediaries, third-party administrators (TPAs), premium finance companies, and persons involved in selling insurance products in travel agencies, self-service storage facilities, retail establishments, telecommunications, and rental car companies. The Licensing Division is efficient in the average processing time for the over 700,000 filings processed each year. In the past few years, the Licensing Division�s average processing time has moved from 3.0 days in Fiscal Year 2003 to 2.2 days in Fiscal Year 2004 and has been maintained at the 2.2 days level since then. There were 370,218 active licenses as of August 31, 2007. The Licensing Division is a production unit which processes high volumes steadily throughout each year.

4. 4 Criminal History / Fingerprinting Do it early and do it electronically Multiple locations for electronic collection FBI/DPS processing fee is $34.25 paid by applicant Yes, our applicants might have a criminal history. About 19% on average. The majority of those that do have a criminal history usually are limited to a single offense of DWI, Drugs or simple assault. Only about 1% of the 19% are significant enough to preclude licensing. Our new criminal history fingerprint rule, allows the Department to collect fingerprints from applicants seeking a license, registration or certification from the Department. The rule transfers to the applicant the $34.25 cost of processing charged by the Department of Public Safety ($15) and the Federal Bureau of Investigations ($19.25) The FBI fee dropped to $19.25 from $24 on October 1, 2007. Yes, our applicants might have a criminal history. About 19% on average. The majority of those that do have a criminal history usually are limited to a single offense of DWI, Drugs or simple assault. Only about 1% of the 19% are significant enough to preclude licensing. Our new criminal history fingerprint rule, allows the Department to collect fingerprints from applicants seeking a license, registration or certification from the Department. The rule transfers to the applicant the $34.25 cost of processing charged by the Department of Public Safety ($15) and the Federal Bureau of Investigations ($19.25) The FBI fee dropped to $19.25 from $24 on October 1, 2007.

5. 5 Fingerprint Processing Time

6. 6 Fingerprint Process 1.� Print / complete FAST Pass from TDI's web site.�� 2.� Schedule an appointment with IBT at www.iisfingerprint.com or call toll-free 1-888-467-2080 (8am-5pm CST).� $34.25 fee plus a $9.95 fingerprint collection fee ($44.20 total) 3.� Arrive at your scheduled appointment with your FAST Pass.�� 4.� Attach your fingerprint receipt to your application.�

7. 7 Electronic Renewals Online Renewal of Licenses: 24 hour / 7 days a week Credit card Simultaneously update address Vendors NIPR www.licenseregistry.com Sircon www.sircon.com TexasOnline www.texasonline.com The Licensing Division and our insurance industry customers benefit greatly by the numerous automated electronic filing options which we make available. We support online renewal of agent, adjuster and agency licenses through several outside vendors. The Texas Department of Insurance and the Licensing Division in particular served as one of the pilot agencies for E-government electronic filings through TexasOnline. Our agent look-up page on TexasOnline receives over 500,000 hits per month. Agents, insurers and the public can check the status of agent�s license, the companies the agent represents and agent mailing addresses at this site. In addition, agents can use a credit card to renew their license through any of these three vendors. NIPR is the National Insurance Producer Registry, a nonprofit organization formed by the National Association of Insurance Commissioners to facilitate electronic processing of agent licensing filings throughout the country. NIPR maintains a nationwide database of licensed agents called the Producer Database. Sircon is a private organization under contract by the Department to host our licensing database.The Licensing Division and our insurance industry customers benefit greatly by the numerous automated electronic filing options which we make available. We support online renewal of agent, adjuster and agency licenses through several outside vendors. The Texas Department of Insurance and the Licensing Division in particular served as one of the pilot agencies for E-government electronic filings through TexasOnline. Our agent look-up page on TexasOnline receives over 500,000 hits per month. Agents, insurers and the public can check the status of agent�s license, the companies the agent represents and agent mailing addresses at this site. In addition, agents can use a credit card to renew their license through any of these three vendors. NIPR is the National Insurance Producer Registry, a nonprofit organization formed by the National Association of Insurance Commissioners to facilitate electronic processing of agent licensing filings throughout the country. NIPR maintains a nationwide database of licensed agents called the Producer Database. Sircon is a private organization under contract by the Department to host our licensing database.

8. 8 Electronic Appointments Electronic appointments: Over 90% processed electronically National Insurance Producer Registry (NIPR) NIPR authorized business partners Over 90% of the appointment transactions are processed electronically on average in less than 2 days. This is possible because the National Insurance Producer Registry (NIPR) established a standard format for electronic submission of appointments or termination of appointments which is utilized by NIPR or one of the many NIPR Authorized Business Partners which provide administrative services to the insurance industry. Over 90% of the appointment transactions are processed electronically on average in less than 2 days. This is possible because the National Insurance Producer Registry (NIPR) established a standard format for electronic submission of appointments or termination of appointments which is utilized by NIPR or one of the many NIPR Authorized Business Partners which provide administrative services to the insurance industry.

9. 9 Electronic Licensing Avoid the need for obtaining a certification letter Avoid time to mail to insurance departments Obtain nonresident licenses in multiple states through one transaction NIPR also offers other electronic filing processes including a very beneficial Electronic Nonresident Licensing and Renewal system. If an agent is licensed and in good standing in one state, other states will grant reciprocal licensing of the agent waiving examination in their state and continuing education requirements (The federal Gramm, Leach, Bliley Act of 1999 virtually forced states to adopt this practice). Because, NIPR maintains a national database of agents provided by the states, their electronic system can automatically verify the home state licensure avoiding the need of obtaining a hard copy confirmation from the home state in the form of a certification letter. The NIPR system allows a licensed agent to obtain nonresident licenses in multiple states through one transaction. For example, a Texas licensed resident agent can become licensed to sell insurance in Oklahoma, California and New York in a matter of minutes. NIPR also offers other electronic filing processes including a very beneficial Electronic Nonresident Licensing and Renewal system. If an agent is licensed and in good standing in one state, other states will grant reciprocal licensing of the agent waiving examination in their state and continuing education requirements (The federal Gramm, Leach, Bliley Act of 1999 virtually forced states to adopt this practice). Because, NIPR maintains a national database of agents provided by the states, their electronic system can automatically verify the home state licensure avoiding the need of obtaining a hard copy confirmation from the home state in the form of a certification letter. The NIPR system allows a licensed agent to obtain nonresident licenses in multiple states through one transaction. For example, a Texas licensed resident agent can become licensed to sell insurance in Oklahoma, California and New York in a matter of minutes.

10. 10 Rebating Bulletin B-0004-08 Unfair method of competition - agents losing business to agencies offering free administrative services (rebate/inducement) TIC 541.056 � Unfair Methods of Competition � Prohibited Rebates and Inducements TIC 543.003 � Prohibited Practices Related to Policy � Thing of Value Not Specified in Policy TIC 4005.053 ( c) � Certain Payments Prohibited

11. 11 Types of Free Services Cobra Benefits Flexible Spending Account administration services Human resource administration costs

12. 12 Life Insurance License (New!) Limited to sale of life insurance products � life, annuities, variable annuites Over 3,900 active�Life Agent licenses�as of 6/1/08 First time passing ratio in April 2008 was 51%

13. 13 Contact Information Licensing Customer Service � 512-322-3503 Licensing Email � LICENSE@tdi.state.tx.us