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