Relating to the insurance commissioner’s authority concerning insurance producers, business entity producers, and preneed sellers

This bill relates to the insurance commissioner’s authority concerning insurance producers, business entity producers, and preneed sellers. Under current law, confidential information includes the information, records, and documents utilized for the investigation, regulation, or examination of an insurance company or insurance holding company. The bill also applies to the confidential information of an individual insurance producer or a business entity producer. Such information, records, and documents are confidential, and shall not be disclosed by the insurance division and are not subject to subpoena. Current law permits the commissioner to place on probation, or suspend, revoke, or refuse to issue or renew an insurance producer’s license, or levy a civil penalty, if the insurance producer is the subject of an order of a securities administrator. The bill includes an insurance producer that is the subject of an order of the federal securities and exchange commission or the financial industry regulatory authority. The penalty for a violation of Code chapter 523A shall be a civil penalty of not more than $1,000 for each violation, not to exceed an aggregate of $10,000 during any six-month period, except if the commissioner finds that the person knew or reasonably should have known that the person was in violation of specific laws or rules related to cemetery and funeral merchandise, and funeral services, the penalty shall not exceed $5,000 for each violation, or an aggregate of $50,000 during any six-month period.