The continuing education requirement shall not apply to:

1. (1) Agents licensed under the Insurance Code, Articles 21.07-1, 21.07-3, and 21.14 who have been licensed, under one of those authorities, for 20 years or more on or after September 1, 1992. Agents shall apply for this exemption by submitting a written request to the department indicating that they have met the longevity requirement. Agents must satisfy the continuing education requirements through the end of the 20th year of licensure. The number of credit hours for the final reporting period is calculated at the rate of one hour for each whole month between the last renewal date and the effective date of the exemption.
2. (2) Agents licensed under the Insurance Code, Article 21.07-1 who maintain a license solely for the purpose of receiving residual or renewal commissions. Agents shall apply by letter for an inactive status exemption each reporting period. The letter must state that the licensee has performed no acts of an insurance agent as defined in the statute governing such license for the entire reporting period and that the sole purpose for maintaining the license is to receive residual or renewal commissions.
3. (3) Nonresident agents licensed under the Insurance Code, Article 21.07-1 who are subject to continuing education requirements in their home state, provided the resident state exercises reciprocity with Texas' continuing education requirements.
4. (4) Nonresident adjusters that have a valid license from another state, provided the other state is recognized by the department as having substantially equivalent continuing education requirements for adjusters.

5. (5) Agents and adjusters who meet the criteria of illness, medical disability or circumstances beyond the control of the licensee. A licensee shall apply to the department for an exemption from or an extension of time for meeting the continuing education requirements. The request should be received prior to the end of the reporting period for which it applies and should include at least the information set forth in subparagraphs (A)-(F) of this paragraph:

   1. (A) Statement of the exact nature of the illness, medical disability or other extenuating circumstances beyond the control of the licensee that have prevented or will prevent the licensee from completing the required hours within the two year reporting period.
   2. (B) Evidence in the form of medical reports from attending physician(s) and insurance claims regarding the illness or medical disability of the licensee or evidence through insurance claims and/or other documentation as determined regarding circumstances beyond the control of the licensee.
   3. (C) Assessment of the condition of the licensee whether it is temporary, permanent or unknown.
   4. (D) Statement as to whether the licensee will or will not be able to perform activities including any acts of an agent or adjuster.
   5. (E) Estimated date when the licensee will be able to perform any activities including any acts of an agent or adjuster in accordance with the medical reports or other documents pertaining to circumstances beyond the control of the licensee.
   6. (F) Any other information that may be requested by the department.

Source Note:The provisions of this §19.1004 adopted to be effective May 27, 1994, 19 TexReg 3697; amended to be effective January 10, 1997, 22 TexReg 49.