By Martinez Fischer H.B. No. 1404
77R5137 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain credit insurance policies.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is
1-5 amended by adding Article 21.79A to read as follows:
1-6 Art. 21.79A. CREDIT INSURANCE MARKETED IN CONNECTION WITH
1-7 CREDIT CARDS
1-8 Sec. 1. DEFINITIONS. In this article:
1-9 (1) "Credit card" means an identification card or any
1-10 other similar item authorizing a designated person to obtain
1-11 property or services on credit.
1-12 (2) "Credit insurance" includes:
1-13 (A) credit life insurance;
1-14 (B) credit accident and health or disability
1-15 insurance; and
1-16 (C) credit involuntary unemployment insurance.
1-17 (3) "Insurer" means any insurance company authorized
1-18 to issue credit insurance in this state. The term includes a
1-19 Lloyd's plan insurer, a reciprocal or interinsurance exchange, a
1-20 county mutual insurance company, or a farm mutual insurance
1-21 company.
1-22 Sec. 2. APPLICABILITY. This article applies only to an
1-23 insurer who issues to a resident of this state a policy or group
1-24 certificate of credit insurance that is marketed in connection
2-1 with:
2-2 (1) an application for a credit card;
2-3 (2) billing statements for a credit card; or
2-4 (3) any other communication directed to holders of a
2-5 credit card or applicants for a credit card.
2-6 Sec. 3. REQUIRED RECORDS. (a) An insurer shall maintain
2-7 complete records relating to each policy or group certificate of
2-8 credit insurance issued by the insurer that is subject to this
2-9 article. The records must include:
2-10 (1) the original application for the policy or
2-11 certificate; and
2-12 (2) a copy of the policy or certificate issued to the
2-13 insured or a notation of the policy form under which the insured is
2-14 covered.
2-15 (b) The insurer shall maintain the records at least until
2-16 the first anniversary of the date coverage under the policy or
2-17 certificate terminates.
2-18 (c) An insured may inspect records maintained by an insurer
2-19 under this section for the policy or group certificate issued to
2-20 the insured. On the request of an insured, the insurer shall
2-21 provide copies of the records to the insured. If the records do not
2-22 include a copy of the certificate or policy issued to the insured,
2-23 the insurer shall permit the insured to inspect the policy form
2-24 under which the insured is covered and shall, on request, provide a
2-25 copy of the policy form to the insured. The insurer may charge a
2-26 fee for providing copies under this section. The fee may not exceed
2-27 the insurer's cost in providing the copies.
3-1 (d) This section does not affect the insured's obligation to
3-2 issue an original policy or certificate to an insured.
3-3 Sec. 4. RULES. The commissioner may adopt rules as
3-4 necessary to implement this article.
3-5 SECTION 2. Article 21.79A, Insurance Code, as added by this
3-6 Act, applies only to a policy or group certificate of credit
3-7 insurance issued on or after the effective date of this Act. A
3-8 policy or group certificate of credit insurance issued before the
3-9 effective date of this Act is governed by the law as it existed
3-10 immediately before the effective date of this Act, and that law is
3-11 continued in effect for this purpose.
3-12 SECTION 3. This Act takes effect September 1, 2001.