SRC-AAA C.S.S.B. 1292 75(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1292
By: Cain
Economic Development
4-16-97
Committee Report (Substituted)


DIGEST 

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, C.S.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 insurance the company is authorized.
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 examination or continuing education requirements.
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.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Article 21.07, Insurance Code, by adding Section 21, to redefine
proposed definitions of "credit insurance" by deleting proposed
Subdivision (E) and "credit property insurance."