By Eiland                                             H.R. No. 1314
         76R18013 DLF-D                           
                                 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.