SRC-JBJ C.S.S.B. 522 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 522
By: Cain
Economic Development
4/5/1999
Committee Report (Substituted)


DIGEST 

Currently, the Texas Department of Insurance interprets the definition for
"vehicle" to exclude rental trucks, small utility trailers, motor homes,
and motorcycles.  As a result, a rental company, licensed to issue
short-term, optional insurance, may not extend its limited coverage to
certain  rental vehicles and equipment.  C.S.S.B. 522 would authorize
insurance coverage on certain rental vehicles and vehicle equipment by
redefining certain terms in Article 21.07, Insurance Code, to include
rental trucks, small utility trailers, motor homes, motorcycles, car-top
carriers, and tow dollies. 

PURPOSE

As proposed, C.S.S.B. 522 authorizes insurance coverage on certain rental
vehicles and vehicle equipment. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS


SECTION 1.  Amends Subsections 21 (b), (f), (g), (i), and (j), Article
21.07, Insurance Code, to redefine "limited licensee," "rental agreement,"
"rental car company," "renter," "vehicle," and vehicle equipment."
Authorizes a rental car company, agent, licensee, or a licensed franchisee
to act as an agent for an authorized insurer only when the actors rent a
vehicle or vehicle equipment and only with respect to certain type of
insurance.  Sets forth the kinds of insurance an actor may utilize and
includes vehicle equipment under the coverage of those insurance types and
includes household belongs in personal effect insurance.  Makes conforming
changes.   

SECTION 2.  Makes application of this Act prospective.

SECTION 3.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 4.Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Subsection (f), Section 21, Article 21.07, Insurance Code, to add an
agent and licensee to those who may act as an agent for an authorized
insurer who uses certain types of insurance.  Adds household belongings to
those items included in personal effects insurance.