Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By: Cain S.B. No. 1290
A BILL TO BE ENTITLED
AN ACT
1-1 relating to procedures applicable to providing certain protection
1-2 for the owner of a vehicle that is security for a sale or lease
1-3 contract.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 15, Article 21.07, Texas Insurance Code,
1-6 is amended to read as follows:
1-7 Sec. 15. AUTHORITY OF AGENT. [DUAL LICENSING]. (a) Any
1-8 person or corporation that holds a license under the provisions of
1-9 Article 21.07-1, Texas Insurance Code, 1951, as amended, shall be
1-10 entitled to receive a license under this Article 21.07, and be
1-11 authorized to write health and accident insurance without being
1-12 required to pass the examination as required under this Article
1-13 21.07. Any person or corporation that holds a license under the
1-14 provisions of Article 21.14, Texas Insurance Code, 1951, as
1-15 amended, shall be entitled to write health and accident insurance
1-16 written by those companies for whom he or it is licensed under
1-17 Article 21.14 without being required to pass the examination
1-18 required under this Article 21.07.
1-19 (b) Notwithstanding any provision of law to the
1-20 contrary, a person who is licensed as an agent under this article
1-21 may sell or offer for sale a policy of insurance covering the
1-22 difference between the actual market value of a motor vehicle that
1-23 is the security for a loan or lease contract, and the outstanding
2-1 loan or lease balance owed against the motor vehicle if, and when,
2-2 the vehicle is rendered an actual or constructive total loss while
2-3 the debt for which the motor vehicle serves as security exceeds the
2-4 actual market value of the vehicle.
2-5 SECTION 2. Subsection (b), Section 18, Article 21.07,
2-6 Insurance Code, is amended to read as follows:
2-7 (b) Notwithstanding any provisions of either this Article or
2-8 of the Insurance Code to the contrary, an employee, officer,
2-9 director, or shareholder of a dealer who holds a valid dealer's
2-10 general distinguishing number issued by the Texas Department of
2-11 Transportation pursuant to the authority of Chapter 503,
2-12 Transportation Code [Article 6686, Revised Statutes], who is
2-13 licensed as an agent under this Article, and who enters into a
2-14 contract with an insurer to act as the insurer's agent in
2-15 soliciting or writing policies or certificates of credit life
2-16 insurance, credit accident and health insurance, or both, or
2-17 policies or certificates written as provided by Section 21.07(b),
2-18 Insurance Code, may assign and transfer to the dealer or any
2-19 affiliate of the dealer, any commissions, fees, or other
2-20 compensation to be paid to the agent under the agent's contract
2-21 with the insurer.
2-22 SECTION 3. This Act takes effect September 1, 1997.
2-23 SECTION 4. The importance of this legislation and the
2-24 crowded condition of the calendars in both houses create an
2-25 emergency and an imperative public necessity that the
3-1 constitutional rule requiring bills to be read on three several
3-2 days in each house be suspended, and this rule is hereby suspended.