1-1     By:  Cain                                             S.B. No. 1290

 1-2           (In the Senate - Filed March 12, 1997; March 18, 1997, read

 1-3     first time and referred to Committee on Economic Development;

 1-4     April 22, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 9, Nays 0; April 22, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1290                    By:  Cain

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the authority of an insurance agent to sell insurance

1-11     covering a vehicle that is security for a sale or lease contract.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Article 21.07, Insurance Code, is amended by

1-14     adding Section 6A to read as follows:

1-15           Sec. 6A.  COVERAGE FOR VEHICLE USED AS SECURITY.

1-16     Notwithstanding any other law to the contrary, a person licensed as

1-17     an agent under this article may be appointed to act as an agent for

1-18     an authorized insurer selling or offering for sale an insurance

1-19     policy that covers the difference between the actual cash value of

1-20     a motor vehicle used as security for a loan or lease and the

1-21     outstanding balance of that loan or lease in the event of loss or

1-22     damage in which the vehicle is rendered an actual or constructive

1-23     total loss while the debt for which the vehicle serves as security

1-24     exceeds the actual cash value of the vehicle.

1-25           SECTION 2.  This Act takes effect September 1, 1997.

1-26           SECTION 3.  The importance of this legislation and the

1-27     crowded condition of the calendars in both houses create an

1-28     emergency and an imperative public necessity that the

1-29     constitutional rule requiring bills to be read on three several

1-30     days in each house be suspended, and this rule is hereby suspended.

1-31                                  * * * * *