By:  Cain                                             S.B. No. 1290

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2     covering a vehicle that is security for a sale or lease contract.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Article 21.07, Insurance Code, is amended by

 1-5     adding Section 6A to read as follows:

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

 1-7     Notwithstanding any other law to the contrary, a person licensed as

 1-8     an agent under this article may be appointed to act as an agent for

 1-9     an authorized insurer selling or offering for sale an insurance

1-10     policy that covers the difference between the actual cash value of

1-11     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 loss or

1-13     damage 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 cash 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.