S.B. No. 99 



AN ACT


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 
identity theft.
	(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 
policy; and        
		(2)  underwritten and issued as an individual or group 
insurance policy.
	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 
that:    
		(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 
this state:
		(1)  general liability insurance;                                             
		(2)  residential and commercial property insurance, 
including farm and ranch insurance and farm and ranch owners 
insurance;
		(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; [and]                    
		(14)  personal and commercial automobile insurance; 
and              
		(15)  identity theft insurance coverage issued under 
Chapter 706.    
	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            



Approved:


______________________________ 
            Date



______________________________ 
          Governor