By Madla                                               S.B. No. 466
         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.