1-1 By: Madla S.B. No. 466 1-2 (In the Senate - Filed January 30, 2001; January 31, 2001, 1-3 read first time and referred to Committee on Business and Commerce; 1-4 February 26, 2001, reported favorably by the following vote: Yeas 1-5 7, Nays 0; February 26, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to a specialty insurance agent license for persons who 1-9 sell certain telecommunications equipment. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subsection (a), Section 1, Article 21.09, 1-12 Insurance Code, is amended to read as follows: 1-13 (a) The commissioner may issue a specialty license to an 1-14 applicant who has complied with the requirements of this article. 1-15 A specialty license authorizes the license holder to act as an 1-16 agent for the types of insurance specified in this article for any 1-17 insurer authorized to write these types of insurance in this state. 1-18 A person who holds a license under this article is known as a 1-19 "specialty license holder." The commissioner may adopt rules 1-20 necessary to implement this article and to meet the minimum 1-21 requirements of federal law and regulations. 1-22 SECTION 2. Article 21.09, Insurance Code, is amended by 1-23 adding Section 7 to read as follows: 1-24 Sec. 7. TELECOMMUNICATIONS EQUIPMENT VENDOR LICENSE. 1-25 (a) In this section: 1-26 (1) "Customer" means a person who purchases 1-27 telecommunications equipment in a retail sales transaction. 1-28 (2) "Telecommunications equipment" includes handsets, 1-29 pagers, automatic answering devices, batteries, and other devices 1-30 used to originate or receive communications. 1-31 (b) Notwithstanding any other provision of this article or 1-32 this code, the commissioner may issue a specialty license under 1-33 Section 1 of this article to a retail vendor of telecommunications 1-34 equipment who complies with this section only for the limited 1-35 purposes set forth in this section. 1-36 (c) A retail vendor of telecommunications equipment licensed 1-37 under Section 1 of this article may act as an agent for any 1-38 authorized insurer only in connection with the sale and use of 1-39 telecommunications equipment and only with respect to: 1-40 (1) insurance that provides coverage to customers for 1-41 the loss of, the malfunction of, or damage to, telecommunications 1-42 equipment; or 1-43 (2) any other coverage the commissioner may approve as 1-44 meaningful and appropriate in connection with the use of 1-45 telecommunications equipment. 1-46 (d) Insurance may not be issued under this section unless 1-47 the brochures or other written materials containing the disclosures 1-48 required by Section 1(g) of this article are prominently displayed 1-49 and readily available to the prospective purchaser of the insurance 1-50 coverage. 1-51 SECTION 3. Section 6, Article 21.09, Insurance Code, is 1-52 repealed. 1-53 SECTION 4. This Act takes effect September 1, 2001. 1-54 * * * * *