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