HBA-TBM H.B. 1342 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1342 By: Eiland Insurance 2/23/2001 Introduced BACKGROUND AND PURPOSE Under current law, the commissioner of insurance (commissioner) may issue specialty licenses to businesses, rather than individual employees, that provide point of sale insurance coverage, such as credit insurance, rental car insurance, and travel insurance. a vendor of telecommunications equipment is not able to obtain such a license. House Bill 1342 amends the Insurance Code to authorize the commissioner to issue a specialty license to a vendor of telecommunications equipment with respect to insurance that provides coverage to customers for the loss of, malfunction of, or damage to the telecommunications equipment. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the commissioner of insurance in SECTION 1 (Article 21.09, Insurance Code) of this bill. ANALYSIS House Bill 1342 amends the Insurance Code to authorize the commissioner of insurance (commissioner) to adopt rules necessary to implement provisions regarding a specialty license holder and to meet the minimum requirements of federal law and regulations. The bill authorizes the commissioner to issue a specialty license to a retail vendor of telecommunications equipment to act as an agent for any authorized insurer only in connection with the sale and use of telecommunications equipment under specified conditions. The bill prohibits insurance from being issued unless brochures or other written materials containing the required disclosures pertaining to the insurance are prominently displayed and readily available to the prospective purchaser of the insurance coverage. EFFECTIVE DATE September 1, 2001.