75R9781 PB-D                           

         By Marchant                                           H.B. No. 2351

         Substitute the following for H.B. No. 2351:

         By Marchant                                       C.S.H.B. No. 2351

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the authority of an insurance agent to sell insurance

 1-3     covering a vehicle that is security for a sale or lease contract.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Article 21.07, Insurance Code, is amended by

 1-6     adding Section 6A to read as follows:

 1-7           Sec. 6A.  COVERAGE FOR VEHICLE USED AS SECURITY.

 1-8     Notwithstanding any other law to the contrary, a person licensed as

 1-9     an agent under this article may sell or offer for sale an insurance

1-10     policy that covers the difference between the actual market value

1-11     of a motor vehicle used as security for a loan or lease and the

1-12     outstanding balance of that loan or lease in the event of an

1-13     accident in which the vehicle is rendered an actual or constructive

1-14     total loss while the debt for which the vehicle serves as security

1-15     exceeds the actual market value of the vehicle.

1-16           SECTION 2.  This Act takes effect September 1, 1997.

1-17           SECTION 3.  The importance of this legislation and the

1-18     crowded condition of the calendars in both houses create an

1-19     emergency and an imperative public necessity that the

1-20     constitutional rule requiring bills to be read on three several

1-21     days in each house be suspended, and this rule is hereby suspended.