By Cain S.B. No. 1292
Substitute the following for S.B. No. 1292:
By Burnam C.S.S.B. No. 1292
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the licensing of agents for the sale of credit
1-3 insurance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 21.07, Insurance Code, is amended by
1-6 adding Section 21 to read as follows:
1-7 Sec. 21. CREDIT INSURANCE AGENTS. (a) In this section:
1-8 (1) "Agent" means a person or corporation licensed to
1-9 sell credit insurance in accordance with this article and as
1-10 specifically provided by this section.
1-11 (2) "Credit insurance" includes:
1-12 (A) credit life insurance;
1-13 (B) credit accident and health insurance;
1-14 (C) credit property insurance; and
1-15 (D) credit involuntary unemployment insurance.
1-16 (3) "Credit property insurance" means insurance:
1-17 (A) providing coverage (i) on personal property
1-18 used as collateral for securing a personal or consumer loan, or
1-19 (ii) on personal property under an installment sales agreement or
1-20 through a consumer credit transaction; and
1-21 (B) purchased in connection or in relation to
1-22 such personal or consumer loan, installment sale, or consumer
1-23 credit transaction; but
1-24 (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 sea
2-6 and its operating equipment or is necessitated by reason of the
2-7 liability imposed by law for damages arising out of the ownership,
2-8 operation, maintenance or use of any of the above vehicles and
2-9 crafts; provided, however, such excluded insurance does not include
2-10 single interest coverages on any of the above vehicles and crafts
2-11 that insures the interest of the creditor in the same as collateral
2-12 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
2-26 engage in the business of insurance in this state.
2-27 (d) A credit insurance agent is not required to comply with
3-1 any examination or continuing education requirement imposed under
3-2 this article to obtain or renew a license issued under this
3-3 section.
3-4 (e) The department shall stamp the face of a license issued
3-5 under this section with the words "CREDIT INSURANCE ONLY."
3-6 SECTION 2. The importance of this legislation and the
3-7 crowded condition of the calendars in both houses create an
3-8 emergency and an imperative public necessity that the
3-9 constitutional rule requiring bills to be read on three several
3-10 days in each house be suspended, and this rule is hereby suspended,
3-11 and that this Act take effect and be in force from and after its
3-12 passage, and it is so enacted.