By Eiland                                             H.B. No. 2100
         77R8055 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 sell contracts regulated by the Texas Department of Banking for
 1-4     prepaid funeral benefits.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 1(a), Article 21.09, Insurance Code, is
 1-7     amended to read as follows:
 1-8           (a)  The commissioner may issue a specialty license to an
 1-9     applicant who has complied with the requirements of this article.
1-10     A specialty license authorizes the license holder to act as an
1-11     agent for the types of insurance specified in this article for any
1-12     insurer authorized to write these types of insurance in this state.
1-13     A person who holds a license under this article is known as a
1-14     "specialty license holder."  The commissioner may adopt rules
1-15     necessary to implement this article and to meet the minimum
1-16     requirements of federal law and regulations.
1-17           SECTION 2. Article 21.09, Insurance Code, is amended by
1-18     adding Section 8 to read as follows:
1-19           Sec. 8.  PREPAID FUNERAL BENEFITS CONTRACT VENDOR LICENSE.
1-20     (a)  In this section:
1-21                 (1)  "Insurance-funded prepaid funeral benefits
1-22     contract" means a prepaid funeral benefits contract that is funded
1-23     by a life insurance policy or annuity approved by the department
1-24     for the specific purpose of funding prepaid funeral benefits
 2-1     contracts.
 2-2                 (2)  "Prepaid funeral benefits" has the meaning
 2-3     assigned by Section 154.002, Finance Code.
 2-4                 (3)  "Prepaid funeral benefits contract vendor" means a
 2-5     person who is authorized under Chapter 154, Finance Code, to sell
 2-6     contracts for prepaid funeral benefits.
 2-7           (b)  Notwithstanding any other provision of this article or
 2-8     this code, the commissioner may issue a specialty license under
 2-9     Section 1 of this article to a prepaid funeral benefits contract
2-10     vendor who complies with this section only for the limited purposes
2-11     set forth in this section.
2-12           (c)  A prepaid funeral benefits contract vendor licensed
2-13     under Section 1 of this article may act as an agent for any
2-14     authorized insurer only in connection with the sale of policies
2-15     issued to fund an insurance-funded prepaid funeral benefits
2-16     contract that has been approved by the Texas Department of Banking.
2-17           (d)  Insurance may not be issued under this section unless
2-18     the brochures or other written materials containing the disclosures
2-19     required by Section 1(g) of this article are prominently displayed
2-20     and readily available to the prospective purchaser of the insurance
2-21     coverage.
2-22           SECTION 3. Section 6, Article 21.09, Insurance Code, is
2-23     repealed.
2-24           SECTION 4. This Act takes effect September 1, 2001.