| |
|
| |
|
|
By: Hancock (Senate Sponsor - Carona) |
H.B. No. 2708 |
|
|
(In the Senate - Received from the House April 23, 2007; |
|
|
April 26, 2007, read first time and referred to Committee on |
|
|
Business and Commerce; May 2, 2007, reported favorably by the |
|
|
following vote: Yeas 9, Nays 0; May 2, 2007, sent to printer.) |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to the nature of certain promotional event prize programs. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subtitle A, Title 10, Insurance Code, is amended |
|
|
by adding Chapter 1810 to read as follows: |
|
|
CHAPTER 1810. PROMOTIONAL EVENT PRIZE PROGRAMS |
|
|
Sec. 1810.001. DEFINITION. In this chapter, "promotional |
|
|
event prize program" means a written contract entered into in this |
|
|
state for commercial marketing or promotional purposes: |
|
|
(1) under which a monetary risk is transferred from |
|
|
one or more parties to the contract to another party to the |
|
|
contract; |
|
|
(2) that does not require as a condition precedent to |
|
|
the imposition of contractual liability on the part of the person |
|
|
accepting the risk: |
|
|
(A) actual economic loss by the person who |
|
|
transfers the risk; or |
|
|
(B) submission of proof of economic loss by the |
|
|
person transferring the risk; and |
|
|
(3) that specifically states that the contract is not |
|
|
for insurance and performance under the contract is not covered by |
|
|
any state guaranty association. |
|
|
Sec. 1810.002. PROGRAM NOT INSURANCE; NOT COVERED BY |
|
|
GUARANTY ASSOCIATION. A promotional event prize program does not |
|
|
constitute the business of insurance in this state. A person's |
|
|
claim for performance under a contract for a promotional event |
|
|
prize program is not a covered claim under Chapter 462 and a |
|
|
promotional event prize program is not covered by the Texas |
|
|
Property and Casualty Insurance Guaranty Association or any other |
|
|
state guaranty association. |
|
|
Sec. 1810.003. CERTAIN MARKETING PROHIBITED. A promotional |
|
|
event prize program may not be marketed or described as insurance. |
|
|
SECTION 2. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect September 1, 2007. |
|
|
|
|
|
* * * * * |