By Cain                                         S.B. No. 1292

      75R7977 PB-F                           

                                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;

1-15                       (D)  credit involuntary unemployment insurance;

1-16     and

1-17                       (E)  any other similar credit insurance coverages

1-18     recognized and approved by the commissioner.

1-19                 (3)  "Credit property insurance" means insurance

1-20     against loss or damage to personal property, other than a motor

1-21     vehicle,  if the personal property is acquired for a nonbusiness

1-22     use and is:

1-23                       (A)  used as collateral to secure a loan; or

1-24                       (B)  purchased through a credit transaction.

 2-1           (b)  On appointment by the insurance company, an agent may

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

 2-3     business of insurance under this code in the sale of any type of

 2-4     credit insurance that the company is authorized to write.  The

 2-5     authority conferred under this section is in addition to the

 2-6     authority conferred under Sections 3(a) and (b) of this article and

 2-7     specifically permits the sale of both individual and group credit

 2-8     insurance.

 2-9           (c)  The department shall issue a credit insurance agent

2-10     license to a person or corporation that applies for that license on

2-11     receipt of a complete application in the form prescribed by the

2-12     department and evidence satisfactory to the department of

2-13     appointment of the agent by an insurance company authorized to

2-14     engage in the business of insurance in this state.

2-15           (d)  A credit insurance agent is not required to comply with

2-16     any examination or continuing education requirement imposed under

2-17     this article to obtain or renew a license issued under this

2-18     section.

2-19           (e)  The department shall stamp the face of a license issued

2-20     under this section  with the words "CREDIT INSURANCE ONLY."

2-21           SECTION 2.  The importance of this legislation and the

2-22     crowded condition of the calendars in both houses create an

2-23     emergency and an imperative public necessity that the

2-24     constitutional rule requiring bills to be read on three several

2-25     days in each house be suspended, and this rule is hereby suspended,

2-26     and that this Act take effect and be in force from and after its

2-27     passage, and it is so enacted.