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                                  * * * * *