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.