Texas 2009 - 81st Regular

Texas Senate Bill SB881 Compare Versions

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1	1	81R7544 PB-F
2	2	By: Eltife S.B. No. 881
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a specialty insurance agent license for certain vendors
8	8	of portable electronic devices.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter F, Chapter 4055, Insurance Code, is
11	11	amended to read as follows:
12	12	SUBCHAPTER F. PORTABLE ELECTRONIC [TELECOMMUNICATIONS EQUIPMENT]
13	13	VENDOR LICENSE
14	14	Sec. 4055.251. DEFINITIONS. In this subchapter:
15	15	(1) "Customer" means a person who purchases a portable
16	16	electronic device or a related service [telecommunications
17	17	equipment in a retail sales transaction].
18	18	(2) "Portable electronic devices" includes
19	19	["Telecommunications equipment" includes] handsets, pagers,
20	20	personal digital assistants, portable global positioning system
21	21	units, portable computers, portable audio listening devices,
22	22	gaming systems, cameras, automatic answering devices, batteries,
23	23	and other similar electronic devices and their accessories [used to
24	24	originate or receive wireless communications exclusive of
25	25	cordless, wireline communications].
26	26	(3) "Vendor" means a person or entity engaged in the
27	27	business of leasing, selling, or providing portable electronic
28	28	devices or related services to customers.
29	29	Sec. 4055.252. ISSUANCE OF LICENSE; LICENSE FEE. (a)
30	30	Notwithstanding any other provision of this chapter or this code,
31	31	the commissioner may issue a specialty license to a [retail] vendor
32	32	[of telecommunications equipment] who complies with this
33	33	subchapter. The specialty license may be issued only for the
34	34	limited purposes specified by this subchapter.
35	35	(b) A specialty license issued to a vendor under this
36	36	subchapter authorizes the vendor and any employee or authorized
37	37	representative of the vendor to offer the type of coverage
38	38	specified in this subchapter at each location at which the vendor
39	39	engages in business.
40	40	(c) The commissioner shall impose an annual license fee for
41	41	a specialty license issued under this subchapter. The commissioner
42	42	shall set the license fee in an amount reasonable and necessary to
43	43	cover the costs of administering this subchapter, not to exceed
44	44	$5,000.
45	45	Sec. 4055.253. AUTHORITY OF [RETAIL] VENDOR OF PORTABLE
46	46	ELECTRONIC DEVICES [TELECOMMUNICATIONS EQUIPMENT]. A [retail]
47	47	vendor [of telecommunications equipment] licensed under this
48	48	subchapter and the vendor's employee and authorized representative
49	49	[chapter] may act as an agent for an authorized insurer [only:
50	50	[(1)] in connection with the sale and use of portable
51	51	electronic devices and related services only [telecommunications
52	52	equipment; and
53	53	[(2)] with respect to:
54	54	(1) [(A)] insurance coverage provided to customers
55	55	that covers portable electronic devices against one or more of the
56	56	following:
57	57	(A) loss;
58	58	(B) theft;
59	59	(C) mechanical failure;
60	60	(D) malfunction;
61	61	(E) damage; or
62	62	(F) other applicable perils [for the loss or
63	63	malfunction of or damage to telecommunications equipment]; or
64	64	(2) the provision of [(B)] any other coverage the
65	65	commissioner approves as meaningful and appropriate in connection
66	66	with the use of portable electronic devices or related services
67	67	[telecommunications equipment].
68	68	Sec. 4055.254. INSURANCE POLICY; REQUIREMENTS. (a)
69	69	Insurance provided under this subchapter must be issued to a
70	70	licensed vendor under a master or group policy of commercial inland
71	71	marine insurance. A customer may be designated as an additional
72	72	insured or certificate holder under the policy.
73	73	(b) A licensed vendor shall provide to each customer
74	74	designated as an additional insured or certificate holder a
75	75	coverage form, certificate, or other evidence of coverage in a
76	76	brochure or separate document.
77	77	Sec. 4055.255. REQUIRED TRAINING. (a) Notwithstanding
78	78	Section 4055.012, an agent who holds a license issued under Chapter
79	79	4051 or a substantially equivalent license issued under this code
80	80	and who is appointed by the insurer that insures a vendor may:
81	81	(1) provide the materials for the training program
82	82	required under Section 4055.012; and
83	83	(2) conduct the applicable training.
84	84	(b) An agent described by Subsection (a) shall submit the
85	85	training program materials for approval as required under Section
86	86	4055.012(c).
87	87	SECTION 2. The commissioner of insurance shall, by rule,
88	88	establish a procedure under which a person holding a license as a
89	89	telecommunications equipment vendor specialty agent that was
90	90	issued under Subchapter F, Chapter 4055, Insurance Code, as it
91	91	existed before amendment by this Act, may convert that license to a
92	92	portable electronic device vendor specialty agent license under
93	93	Subchapter F, Chapter 4055, Insurance Code, as amended by this Act,
94	94	without further qualification. The rules may establish a reasonable
95	95	period for the agent to comply with Section 4055.254, Insurance
96	96	Code, as added by this Act.
97	97	SECTION 3. This Act takes effect September 1, 2009.