S.B. No. 99
relating to the extension of credit to a victim of and to insurance
coverage for identity theft.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 35, Business & Commerce
Code, is amended by adding Section 35.585 to read as follows:
Sec. 35.585. EXTENSION OF CREDIT TO VICTIM OF IDENTITY
THEFT. (a) In this section, "victim of identity theft" means an
individual who has filed a criminal complaint alleging the
commission of an offense under Section 32.51, Penal Code, other
than a person who is convicted of an offense under Section 37.08,
Penal Code, with respect to that complaint. A person who has been
notified that an individual who has the capacity to contract has
been the victim of identity theft may not deny the individual an
extension of credit, including a loan, in the individual's name or
restrict or limit the credit extended solely because the individual
has been a victim of identity theft. This subsection does not
prohibit a person from denying an individual an extension of credit
for a reason other than because the individual has been a victim of
(b) A license issued under Subtitle B, Title 4, Finance
Code, that is held by a person who violates this section is subject
to revocation or suspension under that subtitle.
SECTION 2. The heading to Subtitle F, Title 5, Insurance
Code, is amended to read as follows:
SUBTITLE F. INSURANCE FRAUD AND IDENTITY THEFT
SECTION 3. Subtitle F, Title 5, Insurance Code, is amended
by adding Chapter 706 to read as follows:
CHAPTER 706. IDENTITY THEFT INSURANCE
Sec. 706.001. DEFINITIONS. (a) The definitions adopted
under Article 5.13–2 apply to this chapter.
(b) In this chapter, "identity theft" means a criminal
offense described by Section 32.51, Penal Code, or a substantially
similar federal law or law in another state.
Sec. 706.002. COVERAGE AUTHORIZED. (a) An insurer
authorized to write property and casualty insurance in this state
may offer and issue insurance coverage for a loss suffered by a
policyholder as a result of the policyholders' being a victim of
identity theft or attempted identity theft.
(b) Coverage authorized by Subsection (a) may be:
(1) offered as a separate insurance policy or as a
rider or endorsement to:
(A) a residential and commercial property
insurance policy; or
(B) a personal or commercial casualty insurance
(2) underwritten and issued as an individual or group
Sec. 706.003. ELIGIBLE POLICYHOLDERS. (a) An insurer may
issue coverage authorized under Section 706.002 to:
(1) an individual; or
(2) a group, business, employer, association,
trustee, or other entity for the benefit of its members, customers,
employees, members, or beneficiaries.
(b) An entity described by Subsection (a)(2) may be a group
(1) is formed solely for the purpose of obtaining
insurance coverage under this chapter; or
(2) has already been formed for a purpose other than
for obtaining insurance coverage under this chapter and that is
described by Subsection (a)(2).
Sec. 706.004. RATES AND FORMS. Notwithstanding any other
law, rates and forms for insurance coverage issued under this
chapter are governed by Article 5.13–2.
Sec. 706.005. RULES. The commissioner may adopt rules as
necessary to implement this chapter.
SECTION 4. Subsection (a), Section 2, Article 5.13–2,
Insurance Code, is amended to read as follows:
(a) This article applies to all lines of the following
insurance written under policies or contracts of insurance issued
by an insurer authorized to engage in the business of insurance in
(1) general liability insurance;
(2) residential and commercial property insurance,
including farm and ranch insurance and farm and ranch owners
(3) personal and commercial casualty insurance,
except as provided by Subsection (b) of this section;
(4) medical professional liability insurance;
(5) fidelity and surety bonds other than criminal
court appearance bonds;
(6) personal umbrella insurance;
(7) personal liability insurance;
(8) guaranteed auto protection (GAP) insurance;
(9) involuntary unemployment insurance;
(10) financial guaranty insurance;
(11) inland marine insurance;
(12) rain insurance;
(13) hail insurance on farm crops; [
(14) personal and commercial automobile insurance;
(15) identity theft insurance coverage issued under
SECTION 5. This Act takes effect September 1, 2005.
President of the Senate Speaker of the House
I hereby certify that S.B. No. 99 passed the Senate on
April 26, 2005, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendments on May 12, 2005, by the
following vote: Yeas 31, Nays 0.
Secretary of the Senate
I hereby certify that S.B. No. 99 passed the House, with
amendments, on May 9, 2005, by a non-record vote.
Chief Clerk of the House