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


Senate Research CenterC.S.S.B. 431
77R9069 PB-FBy: Carona
Business & Commerce
3/6/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, speciality licenses are issued to businesses offering credit
insurance, rental car insurance, travel insurance, and self-storage
insurance.  C.S.S.B. 431 amends the speciality license section to allow
rental property owners and property management firms to apply for
speciality licenses 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, to
authorize 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.  

(e)  Requires a license holder under this section to include in each lease
agreement under which the license holder offers insurance under this
section a conspicuous disclaimer, in the format prescribed by the
commissioner, that states substantially certain specified information.
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. 
 


SUMMARY OF COMMITTEE CHANGES

SECTION 1.  No change.

SECTION 2.  Amends As Filed S.B. 431, In proposed Section 6, Article 21.09,
Insurance Code, to require a license holder under this section include in
each lease agreement under which the license holder offers insurance under
this section a conspicuous disclaimer, in the format prescribed by the
commissioner, that states substantially certain specified information. 

SECTION 3.  No change.