STANDARDS FOR EXAMINATION PASS RATES; ANNUAL REPORT

(a) This section applies only to insurance agent license examinations for limited and single lines licenses, including agent licenses issued under: (1) Subchapters C and I, Chapter 4051; and (2) Subchapters C and G, Chapter 4054. (b) The commissioner or, at the commissioner's discretion, a vendor under contract with the department, shall review a license examination subject to this section if, during any 12-month period beginning on September 1 of a year, that examination exhibits an overall pass rate of less than 70 percent for first-time examinees. (c) The department shall collect demographic information, including, race, gender, and national origin, from an individual taking a license examination subject to this section. (d) The department shall compile an annual report based on the review required under Subsection (b). The report must indicate whether there was any disparity in the pass rate based on demographic information. (e) The commissioner by rule may establish procedures as necessary to: (1) collect demographic information necessary to implement this section; and (2) ensure that a review required under Subsection (b) is conducted and the resulting report is prepared. (f) The commissioner shall deliver the report prepared under Subsection (d) to the governor, the lieutenant governor, and the speaker of the house of representatives not later than December 1 of each year.