By: Ratliff S.B. No. 1357
73R8355 PB-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the reimbursement of a local recording agent for
1-3 expenses incurred by the agent in providing certain information to
1-4 a client.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is
1-7 amended by adding Article 21.35A to read as follows:
1-8 Art. 21.35A. PERMISSIBLE REIMBURSEMENT. (a) In this
1-9 article, "client" means an applicant for insurance coverage or an
1-10 insured.
1-11 (b) A local recording agent may charge a client a fee to
1-12 reimburse the agent for costs incurred by the agent in obtaining a
1-13 motor vehicle record of a person, or a photograph of property,
1-14 insured under, or to be insured under, an insurance policy. The
1-15 fee may not exceed the actual costs incurred by the agent. The
1-16 agent may obtain the record or photograph in connection with an
1-17 application for insurance coverage by the client or the issuance of
1-18 an insurance policy to the client or on the client's request.
1-19 (c) An agent may not charge a client a fee under this
1-20 article unless the agent notifies the client of the agent's
1-21 reimbursement requirement before the agent incurs the expense for
1-22 the client.
1-23 SECTION 2. This Act takes effect September 1, 1993, and
1-24 applies only to a fee assessed in connection with an insurance
2-1 policy that is delivered, issued for delivery, or renewed on or
2-2 after January 1, 1994. A policy that is delivered, issued for
2-3 delivery, or renewed before January 1, 1994, is governed by the law
2-4 as it existed immediately before the effective date of this Act,
2-5 and that law is continued in effect for that purpose.
2-6 SECTION 3. The importance of this legislation and the
2-7 crowded condition of the calendars in both houses create an
2-8 emergency and an imperative public necessity that the
2-9 constitutional rule requiring bills to be read on three several
2-10 days in each house be suspended, and this rule is hereby suspended.