RS C.S.S.B. 1292 75(R) BILL ANALYSIS INSURANCE C.S.S.B. 1292 By: Cain (Counts) 5-7-97 Committee Report (Substituted) BACKGROUND Currently, credit insurance agents are licensed under the Insurance Code. The problem is that an agent cannot be licensed to sell all types of credit insurance under one license. This bill would authorize an agent of a licensed insurance company to sell all types of credit insurance, subject to licensure by the Department of Insurance. PURPOSE As proposed, S.B. 1292 authorizes an agent of a licensed insurance company to sell all types of credit insurance, subject to licensure by the Department of Insurance. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 21.07, Insurance Code, by adding Section 21, as follows: Sec. 21. CREDIT INSURANCE AGENTS. Defines "agent," "credit insurance," and credit property insurance." Authorizes an agent to act as the agent of an insurance company authorized to engage in the business of insurance under this code in the sale of any type of credit insurance the company is authorized to write. Requires the Department of Insurance (department) to issue a credit insurance agent license to certain persons or corporations who meet certain provisions. Provides that a credit insurance agent is not required to comply with any examination or continuing education requirements imposed under this article to obtain or renew a license issued under this section. Requires the department to stamp the face of a license issued under this section with the words "CREDIT INSURANCE ONLY." SECTION 2. Emergency clause. Effective date: upon passage. COMPARISON OF ENGROSSED VERSION TO SUBSTITUTE The substitute makes a few changes which are largely non-substantive. SECTION 1 of the bill (Subsection 3(C) of Section 21, Article 21.07) changes "of the above" on lines 9 and 11 to "such", and deletes "manner" from the definition of "Credit Property Insurance."