Dec. 8, 2021

Reminder: Texas House Bill 4030 Impacts Producer Licensing/Administration

Texas House Bill 4030 amended the Insurance Code as it relates to sub-agent designations. There is no longer a sub-agent designation under Insurance Code Chapter 4001. This means that insurers must now directly appoint all agents acting on their behalf.

Applies to:

Effective date: The law applies to all new appointments beginning Sept. 1, 2021.

What’s changing: Texas no longer recognizes the classification of sub-agent. All producers or agents must be directly appointed by an insurance company with the Texas Department of Insurance.

What’s the impact to our Texas agencies: Blue Cross and Blue Shield of Texas will cover these appointment fees through the end of 2021 for all Texas sub-producers. Beginning with the January 2022 commission statements (issued in February), producers and producer agencies will see a one-time $12 fee for each new appointment.

Here’s how it will work: