AN ACT

 1-1     relating to the licensing of agents for the sale of credit

 1-2     insurance.

 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 21 to read as follows:

 1-6           Sec. 21.  CREDIT INSURANCE AGENTS.  (a)  In this section:

 1-7                 (1)  "Agent" means a person or corporation licensed to

 1-8     sell credit insurance in accordance with this article and as

 1-9     specifically provided by this section.

1-10                 (2)  "Credit insurance" includes:

1-11                       (A)  credit life insurance;

1-12                       (B)  credit accident and health insurance;

1-13                       (C)  credit property insurance; and

1-14                       (D)  credit involuntary unemployment insurance.

1-15                 (3)  "Credit property insurance" means insurance:

1-16                       (A)  providing coverage (i) on personal property

1-17     used as collateral for securing a personal or consumer loan, or

1-18     (ii) on personal property under an installment sales agreement or

1-19     through a consumer credit transaction; and

1-20                       (B)  purchased in connection or in relation to

1-21     such personal or consumer loan, installment sale, or consumer

1-22     credit transaction; but

1-23                       (C)  shall not include any insurance which

 2-1     provides theft, collision, liability, property damage, or

 2-2     comprehensive insurance coverage on any automobile, motorized

 2-3     aircraft, motorcycle, truck, truck-tractor, traction engine, or any

 2-4     other self-propelled vehicle which is designed primarily for

 2-5     operation in the air or on highways, roadways, waterways, or the

 2-6     sea, and its operating equipment, or which is necessitated by

 2-7     reason of the liability imposed by law for damages arising out of

 2-8     the ownership, operation, maintenance, or use of any of the above

 2-9     vehicles and crafts; provided, however, such excluded insurance

2-10     does not include single interest coverages on any of the above

2-11     vehicles and crafts that insures the interest of the creditor in

2-12     the same as collateral for a loan.

2-13           (b)  On appointment by the insurance company, an agent may

2-14     act as the agent of any company authorized to engage in the

2-15     business of insurance under this code in the sale of any type of

2-16     credit insurance that the company is authorized to write.  The

2-17     authority conferred under this section is in addition to the

2-18     authority conferred under Sections 3(a) and (b) of this article and

2-19     specifically permits the sale of both individual and group credit

2-20     insurance.

2-21           (c)  The department shall issue a credit insurance agent

2-22     license to a person or corporation that applies for that license on

2-23     receipt of a complete application in the form prescribed by the

2-24     department and evidence satisfactory to the department of

2-25     appointment of the agent by an insurance company authorized to

 3-1     engage in the business of insurance in this state.

 3-2           (d)  A credit insurance agent is not required to comply with

 3-3     any examination or continuing education requirement imposed under

 3-4     this article to obtain or renew a license issued under this

 3-5     section.

 3-6           (e)  The department shall stamp the face of a license issued

 3-7     under this section with the words "CREDIT INSURANCE ONLY."

 3-8           SECTION 2.  The importance of this legislation and the

 3-9     crowded condition of the calendars in both houses create an

3-10     emergency and an imperative public necessity that the

3-11     constitutional rule requiring bills to be read on three several

3-12     days in each house be suspended, and this rule is hereby suspended,

3-13     and that this Act take effect and be in force from and after its

3-14     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1292 passed the Senate on

         April 23, 1997, by the following vote:  Yeas 31, Nays 0; and that

         the Senate concurred in House amendment on May 30, 1997, by the

         following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1292 passed the House, with

         amendment, on May 26, 1997, by the following vote:  Yeas 143,

         Nays 0, one present not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor