By:  Madla                                            S.R. No. 1174
                                  SENATE RESOLUTION
 1-1           BE IT RESOLVED by the Senate of the State of Texas, 76th
 1-2     Legislature, Regular Session, 1999, That Senate Rule 12.03 be
 1-3     suspended in part as provided by Senate Rule 12.08 to enable the
 1-4     conference committee appointed to resolve the differences on Senate
 1-5     Bill No. 957, relating to the licensing of certain persons who
 1-6     provide services related to the business of insurance, to consider
 1-7     and take action on the following matter:
 1-8           Senate Rule 12.03(4) is suspended to permit the committee to
 1-9     add the following text as an appropriately numbered article:
1-10           ARTICLE 5.  LICENSING REQUIREMENTS FOR AUTOMOBILE CLUBS
1-11           SECTION 5.01.  Subchapter F, Chapter 21, Insurance Code, is
1-12     amended by adding Article 21.80 to read as follows:
1-13           Art. 21.80.  LICENSING REQUIREMENTS FOR AUTOMOBILE CLUBS.
1-14     (a)  An automobile club as defined in Section 722.002(2),
1-15     Transportation Code, may provide insurance service only as provided
1-16     by this section.
1-17           (b)  An automobile club may provide a member accidental
1-18     injury and death benefit insurance coverage through purchase of a
1-19     group policy of insurance issued to the automobile club for the
1-20     benefit of its members.  The coverage must be purchased from an
1-21     insurance company authorized to sell that type of coverage in this
1-22     state.  The automobile club shall provide each member covered by
1-23     the insurance a certificate of participation.  The certificate of
1-24     participation must state on its face in at least 14-point black
 2-1     boldface type that the certificate is only a certificate of
 2-2     participation in a group accidental injury and death policy and is
 2-3     not motor vehicle liability insurance coverage.
 2-4           (c)  An automobile club may endorse insurance products and
 2-5     refer members to agents or insurers authorized to provide the
 2-6     insurance products in this state.  The automobile club or an agent
 2-7     of the automobile club may not receive remuneration for the
 2-8     referral.
 2-9           (d)  Except as provided by Subsection (e) of this article, an
2-10     automobile club performing services permitted by this article is
2-11     not subject to regulation under the insurance laws of this state
2-12     because of the performance of those services.
2-13           (e)  An automobile club may sell insurance products to a
2-14     member for a consideration separate from the amount that the member
2-15     pays for membership in the automobile club if the automobile club
2-16     is properly licensed as an agent under the applicable provisions of
2-17     this code.
2-18           (f)  In addition to reimbursement services enumerated in
2-19     Section 722.002(2), Transportation Code, an automobile club may
2-20     contract with a member to reimburse the member for expenses the
2-21     member incurs for towing, emergency road service, and lockout or
2-22     lost key service, and to provide immediate destination assistance
2-23     and trip interruption service.  The insurance laws of this state do
2-24     not apply to reimbursement provided under this subsection.
2-25           SECTION 5.02.  Section 722.013, Transportation Code, is
2-26     repealed.
 3-1           Explanation:  This change is necessary to regulate the
 3-2     provision of certain insurance through automobile clubs.
 3-3                                  ______________________________________
 3-4                                          President of the Senate
 3-5                                       I hereby certify that the above
 3-6                                  Resolution was adopted by the Senate
 3-7                                  on May 29, 1999, by the following
 3-8                                  vote:  Yeas 30, Nays 0.
 3-9                                  ______________________________________
3-10                                          Secretary of the Senate