Enrolled Bill Summary

            House Bill 3391 amends the Insurance Code to add banks as entities that may obtain a license to sell insurance. The act provides that banks selling insurance must be located and do business in places with a population of 5,000 or less, have at least one officer individually licensed by the Texas Department of Insurance, meet the bonding requirements for claims against it by a customer, and must abide by certain provisions relating to licensing of banks and their subsidiaries. In addition, the act provides for certain consumer protections relating to the separation of banking and insurance services, disclosure, and customer privacy and authorizes the insurance commissioner to adopt rules that comply with federal insurance law. The act also establishes requirements, rights, and limitations for nonresident agent license holders. Provisions of this act relating to nonresident agent licensing go into effect on July 1, 1997. The remaining provisions are effective September 1, 1997.