By Eiland H.B. No. 1342 77R5080 PB-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a specialty insurance agent license for persons who 1-3 sell certain telecommunications equipment. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 1(a), Article 21.09, Insurance Code, is 1-6 amended to read as follows: 1-7 (a) The commissioner may issue a specialty license to an 1-8 applicant who has complied with the requirements of this article. A 1-9 specialty license authorizes the license holder to act as an agent 1-10 for the types of insurance specified in this article for any 1-11 insurer authorized to write these types of insurance in this state. 1-12 A person who holds a license under this article is known as a 1-13 "specialty license holder." The commissioner may adopt rules 1-14 necessary to implement this article and to meet the minimum 1-15 requirements of federal law and regulations. 1-16 SECTION 2. Article 21.09, Insurance Code, is amended by 1-17 adding Section 7 to read as follows: 1-18 Sec. 7. TELECOMMUNICATIONS EQUIPMENT VENDOR LICENSE. (a) In 1-19 this section: 1-20 (1) "Customer" means a person who purchases 1-21 telecommunications equipment in a retail sales transaction. 1-22 (2) "Telecommunications equipment" includes handsets, 1-23 pagers, automatic answering devices, batteries, and other devices 1-24 used to originate or receive communications. 2-1 (b) Notwithstanding any other provision of this article or 2-2 this code, the commissioner may issue a specialty license under 2-3 Section 1 of this article to a retail vendor of telecommunications 2-4 equipment who complies with this section only for the limited 2-5 purposes set forth in this section. 2-6 (c) A retail vendor of telecommunications equipment licensed 2-7 under Section 1 of this article may act as an agent for any 2-8 authorized insurer only in connection with the sale and use of 2-9 telecommunications equipment and only with respect to: 2-10 (1) insurance that provides coverage to customers for 2-11 the loss of, the malfunction of, or damage to, telecommunications 2-12 equipment; or 2-13 (2) any other coverage the commissioner may approve as 2-14 meaningful and appropriate in connection with the use of 2-15 telecommunications equipment. 2-16 (d) Insurance may not be issued under this section unless 2-17 the brochures or other written materials containing the disclosures 2-18 required by Section 1(g) of this article are prominently displayed 2-19 and readily available to the prospective purchaser of the insurance 2-20 coverage. 2-21 SECTION 3. Section 6, Article 21.09, Insurance Code, is 2-22 repealed. 2-23 SECTION 4. This Act takes effect September 1, 2001.