R E S O L U T I O N 1-1 BE IT RESOLVED by the House of Representatives of the State 1-2 of Texas, 76th Legislature, Regular Session, 1999, That House Rule 1-3 13, Section 9(a), be suspended in part as provided by House Rule 1-4 13, Section 9(f), to enable the conference committee appointed to 1-5 resolve the differences on Senate Bill No. 957, relating to the 1-6 licensing of certain persons who provide services related to the 1-7 business of insurance, to consider and take action on the following 1-8 matter: 1-9 House Rule 13, Section 9(a)(4), is suspended to permit the 1-10 committee to add the following text as an appropriately numbered 1-11 article: 1-12 ARTICLE ___. LICENSING REQUIREMENTS FOR AUTOMOBILE CLUBS 1-13 SECTION __.01. Subchapter F, Chapter 21, Insurance Code, is 1-14 amended by adding Article 21.80 to read as follows: 1-15 Art. 21.80. LICENSING REQUIREMENTS FOR AUTOMOBILE CLUBS. 1-16 (a) An automobile club as defined in Section 722.002(2), 1-17 Transportation Code, may provide insurance service only as provided 1-18 by this section. 1-19 (b) An automobile club may provide a member accidental 1-20 injury and death benefit insurance coverage through purchase of a 1-21 group policy of insurance issued to the automobile club for the 1-22 benefit of its members. The coverage must be purchased from an 1-23 insurance company authorized to sell that type of coverage in this 1-24 state. The automobile club shall provide each member covered by 2-1 the insurance a certificate of participation. The certificate of 2-2 participation must state on its face in at least 14-point black 2-3 boldface type that the certificate is only a certificate of 2-4 participation in a group accidental injury and death policy and is 2-5 not motor vehicle liability insurance coverage. 2-6 (c) An automobile club may endorse insurance products and 2-7 refer members to agents or insurers authorized to provide the 2-8 insurance products in this state. The automobile club or an agent 2-9 of the automobile club may not receive remuneration for the 2-10 referral. 2-11 (d) Except as provided by Subsection (e) of this article, an 2-12 automobile club performing services permitted by this article is 2-13 not subject to regulation under the insurance laws of this state 2-14 because of the performance of those services. 2-15 (e) An automobile club may sell insurance products to a 2-16 member for a consideration separate from the amount that the member 2-17 pays for membership in the automobile club if the automobile club 2-18 is properly licensed as an agent under the applicable provisions of 2-19 this code. 2-20 (f) In addition to reimbursement services enumerated in 2-21 Section 722.002(2), Transportation Code, an automobile club may 2-22 contract with a member to reimburse the member for expenses the 2-23 member incurs for towing, emergency road service, and lockout or 2-24 lost key service, and to provide immediate destination assistance 2-25 and trip interruption service. The insurance laws of this state do 2-26 not apply to reimbursement provided under this subsection. 2-27 SECTION __.02. Section 722.013, Transportation Code, is 3-1 repealed. 3-2 Explanation: This change is necessary to regulate the 3-3 provision of certain insurance through automobile clubs. Eiland _______________________________ Speaker of the House I certify that H.R. No. 1314 was adopted by the House on May 29, 1999, by a non-record vote. _______________________________ Chief Clerk of the House