1. (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, or registration, or a person's fitness to have the ability to control licensed and authorized entities, when that person has committed a criminal offense or engaged in fraudulent or dishonest activity. 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 or control of a licensed or authorized entity.

2. (b) This subchapter applies to the following persons:

   1. (1) applicants for, or holders of, any license, registration, 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, and viatical or life settlement registrants, under the following Insurance Code provisions:

      1. (A) Article 9.36;
      2. (B) Article 9.42;
      3. (C) Article 9.56;
      4. (D) Article 21.07;
      5. (E) Article 21.07-1;
      6. (F) Article 21.07-2;
      7. (G) Article 21.07-3;
      8. (H) Article 21.07-4;
      9. (I) Article 21.07-5;
      10. (J) Article 21.07-6;
      11. (K) Article 21.07-7;
      12. (L) Article 21.09;
      13. (M) Article 21.11;
      14. (N) Article 21.14;
      15. (O) Article 21.14-1;
      16. (P) Article 21.14-2;
      17. (Q) Article 21.58A;
      18. (R) Article 21.58C;
      19. (S) Chapter 981;
      20. (T) Chapter 1111; or
      21. (U) any other type of license, registration, or authorization that the department may deny or revoke because of a criminal offense of the applicant or license holder;

   2. (2) applicants for, or holders of, a license, registration, permit or authorization issued by the State Fire Marshal's Office, including the following provisions:

      1. (A) Insurance Code Article 5.43-1;
      2. (B) Insurance Code Article 5.43-2;
      3. (C) Insurance Code Article 5.43-3;
      4. (D) Occupations Code Chapter 2154; or
      5. (E) any other 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. (3) those who are or become officers, directors, members, managers, partners and controlling shareholders 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; and
   4. (4) officers and directors of insurance companies subject to Insurance Code Chapter 801.
3. (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.
4. (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.

Source Note:The provisions of this §1.501 adopted to be effective May 2, 2004, 29 TexReg 4185.