By Eiland H.B. No. 1343
77R2190 PB-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a specialty insurance agent license for certain persons
1-3 who rent real property for residential use.
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.
1-9 A specialty license authorizes the license holder to act as an
1-10 agent 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. Section 6, Article 21.09, Insurance Code, is
1-17 amended to read as follows:
1-18 Sec. 6. RESIDENTIAL RENTER LICENSE. (a) In this section:
1-19 (1) "Residential landlord" means a person engaged in
1-20 the business of leasing residential rental property. The term
1-21 includes an affiliate of that person.
1-22 (2) "Residential rental agreement" means a written
1-23 agreement that sets forth the terms and conditions governing the
1-24 use and habitation of residential rental property.
2-1 (3) "Residential rental property" means a unit of real
2-2 property that is rented on a periodic basis to a residential renter
2-3 for use as a habitation. The term includes any common areas used
2-4 by the person.
2-5 (4) "Residential renter" means a person who obtains
2-6 the right under a residential rental agreement to use and inhabit
2-7 residential rental property.
2-8 (b) Notwithstanding any other provision of this article or
2-9 this code, the commissioner may issue a specialty license under
2-10 Section 1 of this article to a residential landlord, or to the
2-11 property manager of a residential landlord, who complies with this
2-12 section only for the limited purposes set forth in this section.
2-13 (c) A residential landlord or property manager licensed
2-14 under Section 1 of this article may act as an agent for any
2-15 authorized insurer only in connection with the rental of
2-16 residential rental property that the landlord or property manager
2-17 leases and only with respect to:
2-18 (1) insurance that provides hazard insurance coverage
2-19 to residential renters for loss of, or damage to, tangible personal
2-20 property during the term of the residential rental agreement;
2-21 (2) insurance that provides liability insurance
2-22 coverage to residential renters for bodily injury or property
2-23 damage during the term of the residential rental agreement; or
2-24 (3) any other coverage the commissioner may approve as
2-25 meaningful and appropriate in connection with the lease of the
2-26 residential rental property.
2-27 (d) Insurance may not be issued under this section unless
3-1 the brochures or other written materials containing the disclosures
3-2 required by Section 1(g) of this article are prominently displayed
3-3 and readily available to the prospective residential renter.
3-4 [RULES. The commissioner may adopt rules necessary to implement
3-5 this article and to meet the minimum requirements of federal law
3-6 and regulations.]
3-7 SECTION 3. (a) This Act takes effect September 1, 2001.
3-8 (b) A residential landlord or property manager for a
3-9 residential landlord is not required to be licensed as provided by
3-10 Section 6, Article 21.09, Insurance Code, as amended by this Act,
3-11 before January 1, 2002.