1-1     By:  Cain                                             S.B. No. 1292

 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 18, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 8, Nays 0; April 18, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1292                    By:  Cain

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the licensing of agents for the sale of credit

1-11     insurance.

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 21 to read as follows:

1-15           Sec. 21.  CREDIT INSURANCE AGENTS.  (a)  In this section:

1-16                 (1)  "Agent" means a person or corporation licensed to

1-17     sell credit insurance in accordance with this article and as

1-18     specifically provided by this section.

1-19                 (2)  "Credit insurance" includes:

1-20                       (A)  credit life insurance;

1-21                       (B)  credit accident and health insurance;

1-22                       (C)  credit property insurance; and

1-23                       (D)  credit involuntary unemployment insurance.

1-24                 (3)  "Credit property insurance" means insurance:

1-25                       (A)  providing coverage (i) on personal property

1-26     used as collateral for securing a personal or consumer loan, or

1-27     (ii) on personal property under an installment sales agreement or

1-28     through a consumer credit transaction; and

1-29                       (B)  purchased in connection or in relation to

1-30     such personal or consumer loan, installment sale, or consumer

1-31     credit transaction; but

1-32                       (C)  shall not include any insurance which

1-33     provides theft, collision, liability, property damage, or

1-34     comprehensive insurance coverage on any automobile, motorized

1-35     aircraft, motorcycle, truck, truck-tractor, traction engine, or any

1-36     other self-propelled vehicle which is designed primarily for

1-37     operation in the air or on highways, roadways, waterways, or the

1-38     sea and its operating equipment or is necessitated by reason of the

1-39     liability imposed by law for damages arising out of the ownership,

1-40     operation, maintenance, or use of any such vehicles and crafts;

1-41     provided, however, such excluded insurance does not include single

1-42     interest coverage on any such vehicles and crafts that insures the

1-43     interest of the creditor in the same manner as collateral for a

1-44     loan.

1-45           (b)  On appointment by the insurance company, an agent may

1-46     act as the agent of any company authorized to engage in the

1-47     business of insurance under this code in the sale of any type of

1-48     credit insurance that the company is authorized to write.  The

1-49     authority conferred under this section is in addition to the

1-50     authority conferred under Sections 3(a) and (b) of this article and

1-51     specifically permits the sale of both individual and group credit

1-52     insurance.

1-53           (c)  The department shall issue a credit insurance agent

1-54     license to a person or corporation that applies for that license on

1-55     receipt of a complete application in the form prescribed by the

1-56     department and evidence satisfactory to the department of

1-57     appointment of the agent by an insurance company authorized to

1-58     engage in the business of insurance in this state.

1-59           (d)  A credit insurance agent is not required to comply with

1-60     any examination or continuing education requirement imposed under

1-61     this article to obtain or renew a license issued under this

1-62     section.

1-63           (e)  The department shall stamp the face of a license issued

1-64     under this section with the words "CREDIT INSURANCE ONLY."

 2-1           SECTION 2.  The importance of this legislation and the

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

 2-3     emergency and an imperative public necessity that the

 2-4     constitutional rule requiring bills to be read on three several

 2-5     days in each house be suspended, and this rule is hereby suspended,

 2-6     and that this Act take effect and be in force from and after its

 2-7     passage, and it is so enacted.

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