SRC-TBR, CTC S.B. 466 77(R)BILL ANALYSIS


Senate Research CenterS.B. 466
By: Madla
Business & Commerce
6/21/2001
Enrolled


DIGEST AND PURPOSE 

Currently, the Insurance Code maintains specific requirements for issuing a
license to a person who provides insurance services.  One of the licenses
issued by the Texas Department of Insurance (department) is a "specialty"
license for a business, instead of for an individual employee, that
provides point of sale insurance products, such as credit insurance ,
rental car insurance, and travel insurance. S.B. 466 amends ceratin
licensing requirements for a specialty license to include a vendor of
telecommunication equipment with respect to insurance that provides
coverage to customers for the loss of, the malfunction of, or damage to the
telecommunication equipment. 

RULEMAKING AUTHORITY

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

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 minimum requirements of
federal law and regulations. 

SECTION 2.  Amends Article 21.09, Insurance Code, by adding Section 7, as
follows: 

Sec. 7.  TELECOMMUNICATIONS EQUIPMENT VENDOR LICENSE.  Defines "customer"
and "telecommunications equipment."  Authorizes the commissioner,
notwithstanding any other provision of this article or code, to issue a
specialty license under Section 1 to a retail vendor of telecommunications
equipment (vendor) who complies with this section only for the limited
purposes set forth in this section.  Authorizes a vendor licensed under
Section 1 to act as an agent for any authorized insurer only in connection
with the sale and use of telecommunications equipment and only with respect
to insurance that provides certain coverage.  Prohibits insurance from
being issued under this section unless the written materials containing the
disclosures required by Section 1(g) are prominently displayed and readily
available to the prospective purchaser of insurance coverage. 

SECTION 3.  Repealer: Section 6 (Rules), Article 21.09, Insurance Code.

SECTION 4.  Effective date:  September 1, 2001.