SRC-TBR S.B. 431 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 431
77R2190 PB-FBy: Carona
Business & Commerce
3/2/2001
As Filed


DIGEST AND PURPOSE 

Currently, speciality licenses are issued to businesses offering credit
insurance, rental car insurance, travel insurance, and self-storage
insurance.  As proposed, S.B. 431 amends the speciality license section to
allow rental property owners and property management firms to apply for a
speciality license so that they may offer renters insurance to their
residents. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the commissioner of insurance
in Section 1 (Section 1(a), Article 21.09, Insurance Code). 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 1(a), Article 21.09, Insurance Code, authorizing
the commissioner of insurance (commissioner) to adopt rules necessary to
implement this article and to meet the minimum requirements of federal law
and regulations. 

SECTION 2.  Amends Section 6, Article 21.09, Insurance Code, as follows:

Sec. 6. RESIDENTIAL RENTER LICENSE.  (a) Defines "residential landlord,"
"residential rental agreement," "residential rental property," and
"residential renter". 

(b)  Authorizes the commissioner, notwithstanding any other provision of
this article or this code, to issue a specialty license under Section 1 of
this article to a residential landlord, or to the property manager of a
residential landlord, who complies with this section only for the limited
purposes set forth in this section. 

(c)  Authorizes a residential landlord or property manager licensed under
Section 1 of this article to act as an agent for any authorized insurer
only in connection with the rental of residential rental property that the
landlord or property manager leases and only with respect to certain forms
of insurance. 

(d)  Prohibits insurance from being issued under this section unless the
brochures or other written materials containing the disclosures required by
Section 1(g) of this article are prominently displayed and readily
available to the prospective residential renter.  Deletes language
regarding rules for implementation. 

SECTION 3.  Effective date: September 1, 2001.  Provides that a residential
landlord or property manager for a residential landlord is not required to
be licensed as provided by Section 6, Article 21.09, Insurance Code, as
amended by this Act, before January 1, 2002.