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A BILL TO BE ENTITLED
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AN ACT
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relating to a specialty insurance agent license for certain vendors |
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of portable electronic devices. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter F, Chapter 4055, Insurance Code, is |
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amended to read as follows: |
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SUBCHAPTER F. PORTABLE ELECTRONIC [TELECOMMUNICATIONS EQUIPMENT] |
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VENDOR LICENSE |
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Sec. 4055.251. DEFINITIONS. In this subchapter: |
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(1) "Customer" means a person who purchases a portable |
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electronic device or a related service [telecommunications
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equipment in a retail sales transaction]. |
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(2) "Portable electronic devices" includes |
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["Telecommunications equipment" includes] handsets, pagers, |
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personal digital assistants, portable global positioning system |
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units, portable computers, portable audio listening devices, |
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gaming systems, cameras, automatic answering devices, batteries, |
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and other similar electronic devices and their accessories [used to
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originate or receive wireless communications exclusive of
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cordless, wireline communications]. |
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(3) "Vendor" means a person or entity engaged in the |
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business of leasing, selling, or providing portable electronic |
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devices or related services to customers. |
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Sec. 4055.252. ISSUANCE OF LICENSE; LICENSE FEE. (a) |
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Notwithstanding any other provision of this chapter or this code, |
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the commissioner may issue a specialty license to a [retail] vendor |
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[of telecommunications equipment] who complies with this |
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subchapter. The specialty license may be issued only for the |
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limited purposes specified by this subchapter. |
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(b) A specialty license issued to a vendor under this |
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subchapter authorizes the vendor and any employee or authorized |
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representative of the vendor to offer the type of coverage |
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specified in this subchapter at each location at which the vendor |
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engages in business. |
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(c) The commissioner shall impose an annual license fee for |
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a specialty license issued under this subchapter. The commissioner |
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shall set the license fee in an amount reasonable and necessary to |
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cover the costs of administering this subchapter, not to exceed |
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$5,000. |
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Sec. 4055.253. AUTHORITY OF [RETAIL] VENDOR OF PORTABLE |
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ELECTRONIC DEVICES [TELECOMMUNICATIONS EQUIPMENT]. A [retail] |
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vendor [of telecommunications equipment] licensed under this |
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subchapter and the vendor's employee and authorized representative |
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[chapter] may act as an agent for an authorized insurer [only:
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[(1)] in connection with the sale and use of portable |
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electronic devices and related services only [telecommunications
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equipment; and
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[(2)] with respect to: |
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(1) [(A)] insurance coverage provided to customers |
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that covers portable electronic devices against one or more of the |
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following: |
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(A) loss; |
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(B) theft; |
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(C) mechanical failure; |
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(D) malfunction; |
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(E) damage; or |
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(F) other applicable perils [for the loss or
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malfunction of or damage to telecommunications equipment]; or |
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(2) the provision of [(B)] any other coverage the |
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commissioner approves as meaningful and appropriate in connection |
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with the use of portable electronic devices or related services |
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[telecommunications equipment]. |
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Sec. 4055.254. INSURANCE POLICY; REQUIREMENTS. (a) |
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Insurance provided under this subchapter must be issued to a |
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licensed vendor under a master or group policy of commercial inland |
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marine insurance. A customer may be designated as an additional |
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insured or certificate holder under the policy. |
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(b) A licensed vendor shall provide to each customer |
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designated as an additional insured or certificate holder a |
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coverage form, certificate, or other evidence of coverage in a |
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brochure or separate document. |
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Sec. 4055.255. REQUIRED TRAINING. (a) Notwithstanding |
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Section 4055.012, an agent who holds a license issued under Chapter |
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4051 or a substantially equivalent license issued under this code |
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and who is appointed by the insurer that insures a vendor may: |
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(1) provide the materials for the training program |
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required under Section 4055.012; and |
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(2) conduct the applicable training. |
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(b) An agent described by Subsection (a) shall submit the |
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training program materials for approval as required under Section |
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4055.012(c). |
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SECTION 2. The commissioner of insurance shall, by rule, |
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establish a procedure under which a person holding a license as a |
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telecommunications equipment vendor specialty agent that was |
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issued under Subchapter F, Chapter 4055, Insurance Code, as it |
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existed before amendment by this Act, may convert that license to a |
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portable electronic device vendor specialty agent license under |
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Subchapter F, Chapter 4055, Insurance Code, as amended by this Act, |
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without further qualification. The rules may establish a reasonable |
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period for the agent to comply with Section 4055.254, Insurance |
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Code, as added by this Act. |
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SECTION 3. This Act takes effect September 1, 2009. |