81R7544 PB-F
By: Eltife S.B. No. 881
A BILL TO BE ENTITLED
AN ACT
relating to a specialty insurance agent license for certain vendors
of portable electronic devices.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 4055, Insurance Code, is
amended to read as follows:
SUBCHAPTER F. PORTABLE ELECTRONIC [TELECOMMUNICATIONS EQUIPMENT]
VENDOR LICENSE
Sec. 4055.251. DEFINITIONS. In this subchapter:
(1) "Customer" means a person who purchases a portable
electronic device or a related service [telecommunications
equipment in a retail sales transaction].
(2) "Portable electronic devices" includes
["Telecommunications equipment" includes] handsets, pagers,
personal digital assistants, portable global positioning system
units, portable computers, portable audio listening devices,
gaming systems, cameras, automatic answering devices, batteries,
and other similar electronic devices and their accessories [used to
originate or receive wireless communications exclusive of
cordless, wireline communications].
(3) "Vendor" means a person or entity engaged in the
business of leasing, selling, or providing portable electronic
devices or related services to customers.
Sec. 4055.252. ISSUANCE OF LICENSE; LICENSE FEE. (a)
Notwithstanding any other provision of this chapter or this code,
the commissioner may issue a specialty license to a [retail] vendor
[of telecommunications equipment] who complies with this
subchapter. The specialty license may be issued only for the
limited purposes specified by this subchapter.
(b) A specialty license issued to a vendor under this
subchapter authorizes the vendor and any employee or authorized
representative of the vendor to offer the type of coverage
specified in this subchapter at each location at which the vendor
engages in business.
(c) The commissioner shall impose an annual license fee for
a specialty license issued under this subchapter. The commissioner
shall set the license fee in an amount reasonable and necessary to
cover the costs of administering this subchapter, not to exceed
$5,000.
Sec. 4055.253. AUTHORITY OF [RETAIL] VENDOR OF PORTABLE
ELECTRONIC DEVICES [TELECOMMUNICATIONS EQUIPMENT]. A [retail]
vendor [of telecommunications equipment] licensed under this
subchapter and the vendor's employee and authorized representative
[chapter] may act as an agent for an authorized insurer [only:
[(1)] in connection with the sale and use of portable
electronic devices and related services only [telecommunications
equipment; and
[(2)] with respect to:
(1) [(A)] insurance coverage provided to customers
that covers portable electronic devices against one or more of the
following:
(A) loss;
(B) theft;
(C) mechanical failure;
(D) malfunction;
(E) damage; or
(F) other applicable perils [for the loss or
malfunction of or damage to telecommunications equipment]; or
(2) the provision of [(B)] any other coverage the
commissioner approves as meaningful and appropriate in connection
with the use of portable electronic devices or related services
[telecommunications equipment].
Sec. 4055.254. INSURANCE POLICY; REQUIREMENTS. (a)
Insurance provided under this subchapter must be issued to a
licensed vendor under a master or group policy of commercial inland
marine insurance. A customer may be designated as an additional
insured or certificate holder under the policy.
(b) A licensed vendor shall provide to each customer
designated as an additional insured or certificate holder a
coverage form, certificate, or other evidence of coverage in a
brochure or separate document.
Sec. 4055.255. REQUIRED TRAINING. (a) Notwithstanding
Section 4055.012, an agent who holds a license issued under Chapter
4051 or a substantially equivalent license issued under this code
and who is appointed by the insurer that insures a vendor may:
(1) provide the materials for the training program
required under Section 4055.012; and
(2) conduct the applicable training.
(b) An agent described by Subsection (a) shall submit the
training program materials for approval as required under Section
4055.012(c).
SECTION 2. The commissioner of insurance shall, by rule,
establish a procedure under which a person holding a license as a
telecommunications equipment vendor specialty agent that was
issued under Subchapter F, Chapter 4055, Insurance Code, as it
existed before amendment by this Act, may convert that license to a
portable electronic device vendor specialty agent license under
Subchapter F, Chapter 4055, Insurance Code, as amended by this Act,
without further qualification. The rules may establish a reasonable
period for the agent to comply with Section 4055.254, Insurance
Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2009.