|
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A BILL TO BE ENTITLED
|
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AN ACT
|
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relating to the licensing and regulation of identity recovery |
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service contract providers and the inclusion of identity recovery |
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service agreements in certain service contracts and vehicle |
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protection products; providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 348.001, Finance Code, is amended by |
|
adding Subdivision (8-a) to read as follows: |
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(8-a) "Service contract" includes an identity |
|
recovery service contract as defined by Section 1306.003, |
|
Occupations Code. |
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SECTION 2. Subsection (b), Section 1304.003, Occupations |
|
Code, is amended to read as follows: |
|
(b) A service contract may also provide for: |
|
(1) incidental payment or indemnity under limited |
|
circumstances, including towing, rental, and emergency road |
|
service; [or] |
|
(2) the repair or replacement of a product for damage |
|
resulting from a power surge or for accidental damage incurred in |
|
handling the product; or |
|
(3) identity recovery, as defined by Section 1306.002, |
|
if the service contract is financed under Chapter 348, Finance |
|
Code. |
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SECTION 3. Title 8, Occupations Code, is amended by adding |
|
Chapter 1306 to read as follows: |
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CHAPTER 1306. IDENTITY RECOVERY SERVICE CONTRACT PROVIDERS AND |
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ADMINISTRATORS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 1306.001. SHORT TITLE. This chapter may be cited as |
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the Identity Recovery Service Contract Regulatory Act. |
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Sec. 1306.002. DEFINITIONS. In this chapter: |
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(1) "Administrator" means a person, other than the |
|
provider of the identity recovery service contract or an employee |
|
of the provider, who is responsible for the third-party |
|
administration of an identity recovery service contract. |
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(2) "Commission" means the Texas Commission of |
|
Licensing and Regulation. |
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(3) "Consumer" means an individual who purchases an |
|
identity recovery service contract. |
|
(4) "Department" means the Texas Department of |
|
Licensing and Regulation. |
|
(5) "Executive director" means the executive director |
|
of the department. |
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(6) "Identity recovery" means a process, through a |
|
limited power of attorney and the assistance of an identity |
|
recovery expert, that returns the identity of an identity theft |
|
victim to pre-identity theft event status. |
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(7) "Identity recovery service contract holder" means |
|
a person who purchases or otherwise holds an identity recovery |
|
service contract. |
|
(8) "Person" means an individual or an association, |
|
company, corporation, partnership, or other group. |
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(9) "Provider" means a person who is contractually |
|
obligated to an identity recovery service contract holder under the |
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terms of an identity recovery service contract. |
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(10) "Reimbursement insurance policy" means a policy |
|
of insurance issued to a provider to: |
|
(A) reimburse the provider under an identity |
|
recovery service contract the provider issued or sold; or |
|
(B) pay on behalf of the provider all covered |
|
contractual obligations that are incurred by the provider under an |
|
identity recovery service contract the provider issued or sold and |
|
that the provider does not perform. |
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Sec. 1306.003. IDENTITY RECOVERY SERVICE CONTRACT. In this |
|
chapter, "identity recovery service contract" means an agreement: |
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(1) to provide identity recovery; |
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(2) that is entered into for a separately stated |
|
consideration and for a specified term; and |
|
(3) that is financed through a retail installment |
|
contract under Chapter 348, Finance Code. |
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Sec. 1306.004. CONTROLLING PERSON. (a) In this chapter, |
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"controlling person" means an individual who: |
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(1) possesses direct or indirect control of at least |
|
25 percent of the voting securities of a corporation; |
|
(2) possesses the authority to set policy and direct |
|
the management of a business entity; |
|
(3) is the president, the secretary, or a director of a |
|
corporation; or |
|
(4) is a general partner of a partnership. |
|
(b) An individual who is a controlling person of a |
|
corporation or other business entity that is the general partner of |
|
a limited partnership is a controlling person of the limited |
|
partnership. |
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Sec. 1306.005. EXEMPTIONS. This chapter does not apply to: |
|
(1) an identity recovery service contract sold or |
|
offered for sale to a person who is not a consumer; or |
|
(2) an identity recovery service contract sold by a |
|
motor vehicle dealer on a motor vehicle sold by that dealer, if the |
|
dealer: |
|
(A) is the provider; |
|
(B) is licensed as a motor vehicle dealer under |
|
Chapter 2301; and |
|
(C) covers its obligations under the identity |
|
recovery service contract with a reimbursement insurance policy. |
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Sec. 1306.006. EXEMPTIONS FROM CERTAIN OTHER LAWS. |
|
Marketing, selling, offering for sale, issuing, making, proposing |
|
to make, and administering an identity recovery service contract |
|
are exempt from the Insurance Code and other laws of this state |
|
regulating the business of insurance. |
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Sec. 1306.007. PURCHASE REQUIREMENT PROHIBITED. A person |
|
regulated by Chapter 2301 may not require the purchase of an |
|
identity recovery service contract as a condition of a loan or the |
|
sale of a vehicle. |
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Sec. 1306.008. GENERAL INVESTIGATIVE POWER OF EXECUTIVE |
|
DIRECTOR. (a) The executive director may investigate a provider, |
|
administrator, or other person as necessary to enforce this chapter |
|
and protect identity recovery service contract holders in this |
|
state. |
|
(b) On request of the executive director, a provider shall |
|
make the records required by Section 1306.105 available to the |
|
executive director as necessary to enable the executive director to |
|
reasonably determine compliance with this chapter. |
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[Sections 1306.009-1306.050 reserved for expansion] |
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SUBCHAPTER B. REGISTRATION REQUIREMENTS |
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Sec. 1306.051. REGISTRATION REQUIRED; EXEMPTION FROM OTHER |
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LICENSING REQUIREMENTS. (a) A person may not operate as a |
|
provider or administrator of identity recovery service contracts |
|
sold in this state unless the person is registered with the |
|
department. |
|
(b) Except for the registration requirement of this |
|
subchapter, a provider, identity recovery service contract seller, |
|
administrator, or other person who markets, sells, or offers to |
|
sell identity recovery service contracts is exempt from any |
|
licensing requirement of this state that relates to an activity |
|
regulated under this chapter. |
|
(c) If a person registered under Chapter 1304 registers |
|
under Chapter 1306, the financial security used to comply with |
|
Section 1304.151 fulfills the requirements of Section 1306.101. |
|
Sec. 1306.052. APPLICATION FOR REGISTRATION OR RENEWAL; |
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GENERAL REQUIREMENTS. (a) An applicant for registration or |
|
registration renewal must submit an application to the executive |
|
director. |
|
(b) The application must: |
|
(1) be in the form prescribed by the executive |
|
director; and |
|
(2) include evidence satisfactory to the executive |
|
director of compliance with the applicable financial security |
|
requirements prescribed by Section 1306.101, if the application is |
|
for a provider registration or renewal. |
|
(c) The department may refuse to issue or renew a |
|
registration if the applicant or a controlling person of the |
|
applicant has violated this chapter or a rule adopted or order |
|
issued by the commission or executive director. |
|
(d) A person who makes a false statement in an application |
|
or in any document provided with an application is subject to |
|
disciplinary action under Subchapter D, including denial of the |
|
application or suspension or revocation of a registration. |
|
Sec. 1306.053. ADDITIONAL REGISTRATION AND RENEWAL |
|
REQUIREMENTS FOR PROVIDERS. (a) In addition to the requirements |
|
of Section 1306.052, an applicant for issuance or renewal of a |
|
provider registration must file with the application: |
|
(1) the reimbursement insurance policy required by |
|
Section 1306.102, if the provider is using a reimbursement |
|
insurance policy; and |
|
(2) a biographical affidavit, in a form prescribed by |
|
the executive director, for each controlling person of the |
|
provider. |
|
(b) The executive director may not issue or renew a |
|
registration to a provider unless the provider provides evidence to |
|
the executive director that: |
|
(1) each controlling person of the provider is |
|
trustworthy and can competently manage the affairs of the provider |
|
in compliance with this chapter; and |
|
(2) the provider can meet the provider's obligations |
|
under identity recovery service contracts and this chapter. |
|
Sec. 1306.054. FEES. (a) As prescribed by this section, a |
|
provider must pay annual registration and renewal fees and |
|
quarterly fees based on the number of identity recovery service |
|
contracts sold or issued and in force in this state. As prescribed |
|
by this section, an administrator must pay annual registration and |
|
renewal fees. |
|
(b) To register or renew a registration, a provider or |
|
administrator must pay the appropriate fee. The commission shall |
|
set by rule the amounts of the registration and renewal fees |
|
required to cover the costs of administering this chapter. |
|
(c) Not later than the 30th day after the date each calendar |
|
quarter ends, a provider must report to the department the number of |
|
identity recovery service contracts sold or issued to consumers in |
|
this state during the calendar quarter and submit to the department |
|
a fee equal to $1 for each of those contracts. |
|
(d) The information concerning the number of identity |
|
recovery service contracts sold or issued by a provider that is |
|
submitted under Subsection (c): |
|
(1) is a trade secret to which Section 552.110, |
|
Government Code, applies; and |
|
(2) may be used only by the executive director and the |
|
department for the purposes of this section. |
|
(e) The commission shall adopt rules to implement this |
|
section. |
|
Sec. 1306.055. RENEWAL. The commission shall adopt rules |
|
regarding the renewal of a registration issued under this chapter. |
|
[Sections 1306.056-1306.100 reserved for expansion] |
|
SUBCHAPTER C. PRACTICE BY IDENTITY RECOVERY SERVICE CONTRACT |
|
PROVIDERS AND ADMINISTRATORS |
|
Sec. 1306.101. FINANCIAL SECURITY REQUIREMENTS. (a) To |
|
ensure the faithful performance of a provider's obligations to its |
|
identity recovery service contract holders, each provider must: |
|
(1) insure the provider's identity recovery service |
|
contracts under a reimbursement insurance policy issued by an |
|
insurer authorized to transact insurance in this state or by a |
|
surplus lines insurer eligible to place coverage in this state |
|
under Chapter 981, Insurance Code; |
|
(2) maintain a funded reserve account covering the |
|
provider's obligations under its identity recovery service |
|
contracts that are issued and outstanding in this state and place in |
|
trust with the executive director a financial security deposit |
|
consisting of: |
|
(A) a surety bond issued by an authorized surety; |
|
(B) securities of the type eligible for deposit |
|
by an authorized insurer in this state; |
|
(C) a statutory deposit of cash or cash |
|
equivalents; |
|
(D) a letter of credit issued by a qualified |
|
financial institution; or |
|
(E) another form of security prescribed by rules |
|
adopted by the commission; or |
|
(3) maintain, or have a parent company that maintains, |
|
a net worth or stockholders' equity of at least $100 million. |
|
(b) If the provider ensures its obligations under |
|
Subsection (a)(2), the amount maintained in the reserve account may |
|
not be less than an amount equal to 40 percent of the gross |
|
consideration the provider received from consumers from the sale of |
|
all identity recovery service contracts issued and outstanding in |
|
this state, minus any claims paid. The executive director may |
|
review and examine the reserve account. The amount of the security |
|
deposit may not be less than the greater of: |
|
(1) $25,000; or |
|
(2) an amount equal to five percent of the gross |
|
consideration the provider received from consumers from the sale of |
|
all identity recovery service contracts issued and outstanding in |
|
this state, minus any claims paid. |
|
(c) If the provider ensures its obligations under |
|
Subsection (a)(3), the provider must give to the executive director |
|
on request: |
|
(1) a copy of the provider's or the provider's parent |
|
company's most recent Form 10-K or Form 20-F filed with the |
|
Securities and Exchange Commission within the preceding calendar |
|
year; or |
|
(2) if the provider or the provider's parent company |
|
does not file with the Securities and Exchange Commission, a copy of |
|
the provider's or the provider's parent company's audited financial |
|
statements showing a net worth of the provider or its parent company |
|
of at least $100 million. |
|
(d) If the provider's parent company's Form 10-K, Form 20-F, |
|
or audited financial statements are filed to show that the provider |
|
meets the financial security requirement, the parent company shall |
|
agree to guarantee the obligations of the provider relating to |
|
identity recovery service contracts sold by the provider in this |
|
state. |
|
(e) The executive director may not require a provider to |
|
meet any additional financial security requirement. |
|
Sec. 1306.102. REIMBURSEMENT INSURANCE POLICY. (a) A |
|
reimbursement insurance policy that a provider uses to comply with |
|
Sections 1306.053 and 1306.101(a)(1) must state that: |
|
(1) the insurer that issued the policy shall: |
|
(A) reimburse or pay on behalf of the provider |
|
any covered amount the provider is legally obligated to pay; or |
|
(B) provide the service that the provider is |
|
legally obligated to perform according to the provider's |
|
contractual obligations under the insured identity recovery |
|
service contract; |
|
(2) if the covered service is not provided to an |
|
identity recovery service contract holder before the 61st day after |
|
the date of proof of loss, the insurer shall pay the covered amount |
|
directly to the identity recovery service contract holder or |
|
provide the required service; and |
|
(3) if a refund is not paid to the identity recovery |
|
service contract holder or credited to the identity recovery |
|
service contract holder's account as required by Section 1306.108, |
|
the insurer, after receiving written notice, shall pay the refund |
|
amount directly to the identity recovery service contract holder. |
|
(b) For a reimbursement insurance policy to comply with |
|
Section 1306.101(a)(1), the insurer issuing the policy must: |
|
(1) maintain surplus as to policyholders and paid-in |
|
capital of at least $15 million and annually file with the executive |
|
director copies of the insurer's audited financial statements, |
|
National Association of Insurance Commissioners annual statement, |
|
and actuarial certification if the certification is required and |
|
filed in the insurer's state of domicile; or |
|
(2) maintain surplus as to policyholders and paid-in |
|
capital of at least $10 million but not more than $15 million, |
|
demonstrate to the satisfaction of the executive director that the |
|
insurer maintains a ratio of net written premiums, wherever |
|
written, to surplus as to policyholders and paid-in capital of not |
|
more than three to one, and annually file with the executive |
|
director copies of the insurer's audited financial statements, |
|
National Association of Insurance Commissioners annual statement, |
|
and actuarial certification if the certification is required and |
|
filed in the insurer's state of domicile. |
|
(c) The insurer may not cancel the reimbursement insurance |
|
policy until the insurer delivers to the provider and the executive |
|
director a written notice of cancellation that complies with the |
|
notice requirements prescribed by Subchapters B and C, Chapter 551, |
|
Insurance Code, for cancellation of an insurance policy under those |
|
subchapters. Cancellation of the policy does not affect the |
|
insurer's liability for an identity recovery service contract |
|
issued by the provider and insured under the policy before the |
|
effective date of the cancellation. |
|
(d) If the insurer or provider cancels the reimbursement |
|
insurance policy, the provider named on the policy may not issue a |
|
new identity recovery service contract after the effective date of |
|
the cancellation unless: |
|
(1) the provider files with the executive director a |
|
copy of a new policy that meets the requirements of this section and |
|
that provides coverage after that date; or |
|
(2) the provider complies with other financial |
|
security requirements provided by Section 1306.101(a). |
|
(e) A provider is considered the agent of an insurer that |
|
issues a reimbursement insurance policy for purposes of obligating |
|
the insurer to the identity recovery service contract holder in |
|
accordance with the identity recovery service contract and this |
|
chapter. The insurer issuing the reimbursement insurance policy is |
|
considered to have received the premium for the policy on the date |
|
the identity recovery service contract holder pays the purchase |
|
price of the identity recovery service contract. |
|
(f) This chapter does not prevent or limit the right of the |
|
insurer to seek indemnification or subrogation against a provider |
|
for any amount the insurer pays or is obligated to pay to an |
|
identity recovery service contract holder on behalf of the |
|
provider. |
|
(g) In this section, "net written premiums" means the sum of |
|
direct written premiums and assumed reinsurance premiums, minus |
|
ceded reinsurance premiums. |
|
Sec. 1306.103. APPOINTMENT AND RESPONSIBILITIES OF |
|
ADMINISTRATOR. (a) A provider may appoint an administrator |
|
registered under this chapter to be responsible for: |
|
(1) all or any part of the administration or sale of |
|
identity recovery service contracts; and |
|
(2) compliance with this chapter, except for Section |
|
1306.101. |
|
(b) The appointment of an administrator under this section |
|
does not affect a provider's responsibility to comply with this |
|
chapter. |
|
Sec. 1306.104. PROVIDER REQUIREMENTS. A provider may not |
|
sell, offer for sale, or issue an identity recovery service |
|
contract in this state unless the provider gives the identity |
|
recovery service contract holder: |
|
(1) a receipt for, or other written evidence of, the |
|
purchase of the contract; and |
|
(2) a copy of the contract within a reasonable period |
|
after the date of purchase. |
|
Sec. 1306.105. PROVIDER RECORDS. (a) A provider shall |
|
maintain accurate accounts, books, and other records regarding |
|
transactions regulated under this chapter. The provider's records |
|
must include: |
|
(1) a copy of each unique form of identity recovery |
|
service contract sold; |
|
(2) the name and address of each identity recovery |
|
service contract holder who provided the holder's name and address; |
|
(3) a list of each location at which the provider's |
|
identity recovery service contracts are marketed, sold, or offered |
|
for sale; and |
|
(4) written claims files that contain at least the |
|
date and a description of each claim related to the identity |
|
recovery service contracts. |
|
(b) The records required by this section may be maintained |
|
in an electronic medium or through other recordkeeping technology. |
|
If a record is not in a hard copy, the provider must be able to |
|
reformat the record into a legible hard copy at the request of the |
|
executive director. |
|
(c) Except as provided by Subsection (d), a provider shall |
|
retain the records required by this section until at least the first |
|
anniversary of the expiration date of the specified period of |
|
coverage under the identity recovery service contract. |
|
(d) A provider that discontinues business in this state |
|
shall retain its records until the provider furnishes the executive |
|
director with proof satisfactory to the executive director that the |
|
provider has discharged all obligations to identity recovery |
|
service contract holders in this state. |
|
(e) An administrator appointed to maintain the provider's |
|
records is responsible for compliance with this section to the same |
|
extent as the provider. |
|
Sec. 1306.106. FORM OF IDENTITY RECOVERY SERVICE CONTRACT |
|
AND REQUIRED DISCLOSURES. (a) An identity recovery service |
|
contract marketed, sold, offered for sale, issued, made, proposed |
|
to be made, or administered in this state must: |
|
(1) be written, printed, or typed in clear, |
|
understandable language that is easy to read; |
|
(2) state the name and address of the provider; |
|
(3) state the purchase price of the contract and the |
|
terms under which the contract is sold; |
|
(4) state the terms and restrictions governing |
|
cancellation of the contract by the provider or the identity |
|
recovery service contract holder before the expiration date of the |
|
contract; |
|
(5) identify: |
|
(A) any administrator; |
|
(B) the contract seller; and |
|
(C) the identity recovery service contract |
|
holder, if the identity recovery service contract holder provides |
|
the holder's name; |
|
(6) state the amount of any deductible; |
|
(7) specify the services to be provided under the |
|
contract and any limitation, exception, or exclusion; |
|
(8) specify any restriction governing the |
|
transferability of the contract; and |
|
(9) state the duties of the identity recovery service |
|
contract holder, including any duty to protect against any further |
|
damage and any requirement to follow the instructions in the |
|
identity recovery service contract. |
|
(b) The identity of a person described by Subsection (a)(5) |
|
is not required to be preprinted on the identity recovery service |
|
contract and may be added to the contract at the time of sale. |
|
(c) The purchase price is not required to be preprinted on |
|
the identity recovery service contract and may be negotiated with |
|
the identity recovery service contract holder at the time of sale. |
|
(d) An identity recovery service contract insured under a |
|
reimbursement insurance policy under Section 1306.102 must: |
|
(1) state the name and address of the insurer; |
|
(2) state that the identity recovery service contract |
|
holder may apply for reimbursement directly to the insurer if: |
|
(A) a covered service is not provided to the |
|
identity recovery service contract holder by the provider before |
|
the 61st day after the date of proof of loss; or |
|
(B) a refund or credit is not paid before the 46th |
|
day after the date on which the contract is returned to the provider |
|
under Section 1306.107; and |
|
(3) contain a statement substantially similar to the |
|
following: "Obligations of the provider under this identity |
|
recovery service contract are insured under an identity recovery |
|
service contract reimbursement insurance policy." |
|
(e) An identity recovery service contract that is not |
|
insured under a reimbursement insurance policy must contain a |
|
statement substantially similar to the following: "Obligations of |
|
the provider under this identity recovery service contract are |
|
backed by the full faith and credit of the provider." |
|
Sec. 1306.107. RETURNING AN IDENTITY RECOVERY SERVICE |
|
CONTRACT. An identity recovery service contract must require the |
|
provider to allow the identity recovery service contract holder to |
|
return the contract to the provider not later than: |
|
(1) the 20th day after the date the contract is mailed |
|
to the identity recovery service contract holder; or |
|
(2) the 10th day after the date of delivery, if the |
|
contract is delivered to the identity recovery service contract |
|
holder at the time of sale. |
|
Sec. 1306.108. VOIDING AN IDENTITY RECOVERY SERVICE |
|
CONTRACT. (a) If an identity recovery service contract holder |
|
returns an identity recovery service contract in accordance with |
|
Section 1306.107 and a claim has not been made under the contract |
|
before the contract is returned, the contract is void. |
|
(b) An identity recovery service contract holder may void |
|
the identity recovery service contract at a later time as provided |
|
by the contract. |
|
(c) If an identity recovery service contract is voided under |
|
Subsection (a), the provider shall refund to the identity recovery |
|
service contract holder or credit to the account of the identity |
|
recovery service contract holder the full purchase price of the |
|
contract. If the provider does not pay the refund or credit the |
|
identity recovery service contract holder's account before the 46th |
|
day after the date the contract is returned to the provider, the |
|
provider is liable to the identity recovery service contract holder |
|
for a penalty each month an amount remains outstanding. The monthly |
|
penalty may not exceed 10 percent of the amount outstanding. |
|
(d) The right to void an identity recovery service contract |
|
is not transferable. |
|
Sec. 1306.109. CANCELING AN IDENTITY RECOVERY SERVICE |
|
CONTRACT. (a) A provider may cancel an identity recovery service |
|
contract by mailing a written notice of cancellation to the |
|
identity recovery service contract holder at the identity recovery |
|
service contract holder's last known address according to the |
|
records of the provider. The provider must mail the notice before |
|
the fifth day preceding the effective date of the cancellation. The |
|
notice must state the effective date of the cancellation and the |
|
reason for the cancellation. |
|
(b) The provider is not required to provide prior notice of |
|
cancellation if the identity recovery service contract is canceled |
|
because of: |
|
(1) nonpayment of the consideration for the contract; |
|
(2) a material misrepresentation by the identity |
|
recovery service contract holder to the provider; or |
|
(3) a substantial breach of a duty by the identity |
|
recovery service contract holder. |
|
Sec. 1306.110. LIMITATIONS ON PROVIDER NAME. (a) A |
|
provider may not use a name that: |
|
(1) includes "insurance," "casualty," "surety," or |
|
"mutual" or any other word descriptive of the insurance, casualty, |
|
or surety business; or |
|
(2) is deceptively similar to the name or description |
|
of an insurance or surety corporation or to the name of any other |
|
provider. |
|
(b) A provider may include in its name "guaranty" or a |
|
similar word. |
|
(c) This section does not apply to a provider that, before |
|
September 1, 2009, included a word prohibited under this section in |
|
its name. A provider described by this subsection must include in |
|
each identity recovery service contract a statement substantially |
|
similar to the following: "This agreement is not an insurance |
|
contract." |
|
Sec. 1306.111. MISLEADING STATEMENTS PROHIBITED. A |
|
provider or the provider's representative may not, in the |
|
provider's identity recovery service contracts or literature: |
|
(1) make, permit, or cause to be made any false or |
|
misleading statement; or |
|
(2) deliberately omit a material statement if the |
|
omission would be considered misleading. |
|
[Sections 1306.112-1306.150 reserved for expansion] |
|
SUBCHAPTER D. DISCIPLINARY ACTION |
|
Sec. 1306.151. DISCIPLINARY ACTION. On a finding that a |
|
ground for disciplinary action exists under this chapter, the |
|
commission may impose an administrative sanction, including an |
|
administrative penalty as provided by Subchapter F, Chapter 51. |
|
Sec. 1306.152. INJUNCTIVE RELIEF; CIVIL PENALTY. (a) The |
|
executive director may institute an action under Section 51.352 for |
|
injunctive relief to restrain a violation or a threatened violation |
|
of this chapter or an order issued or rule adopted under this |
|
chapter. |
|
(b) In addition to the injunctive relief provided by |
|
Subsection (a), the executive director may institute an action for |
|
a civil penalty as provided by Section 51.352. The amount of a |
|
civil penalty assessed under this section may not exceed: |
|
(1) $2,500 for each violation; or |
|
(2) $50,000 in the aggregate for all violations of a |
|
similar nature. |
|
Sec. 1306.153. MULTIPLE VIOLATIONS. For purposes of this |
|
subchapter, violations are of a similar nature if the violations |
|
consist of the same or a similar course of conduct, action, or |
|
practice, regardless of the number of times the conduct, act, or |
|
practice occurred. |
|
Sec. 1306.154. ADMINISTRATIVE PROCEDURE. Sections 51.305, |
|
51.310, and 51.354 apply to disciplinary action taken under this |
|
chapter. |
|
SECTION 4. Section 2306.003, Occupations Code, is amended |
|
by adding Subsection (c) to read as follows: |
|
(c) A vehicle protection product may also include identity |
|
recovery, as defined by Section 1306.002, if the vehicle protection |
|
product is financed under Chapter 348, Finance Code. |
|
SECTION 5. (a) The change in law made by this Act applies |
|
to an identity recovery service contract entered into on or after |
|
January 1, 2010. An identity recovery service contract entered |
|
into before January 1, 2010, is covered by the law in effect on the |
|
date the contract was entered into, and the former law is continued |
|
in effect for that purpose. |
|
(b) Not later than November 1, 2009, the Texas Commission of |
|
Licensing and Regulation shall adopt rules to implement Chapter |
|
1306, Occupations Code, as added by this Act. |
|
SECTION 6. (a) Except as provided by Subsection (b) of |
|
this section, this Act takes effect September 1, 2009. |
|
(b) Section 1306.051 and Subchapter D, Chapter 1306, |
|
Occupations Code, as added by this Act, take effect January 1, 2010. |