Texas 2013 - 83rd Regular

Texas Senate Bill SB839 Compare Versions

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Old	New	Differences
1	1	83R26125 MEW-D
2	2	By: Hancock S.B. No. 839
3	3	(Morrison)
4	4	Substitute the following for S.B. No. 839: No.
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the provision of insurance coverage for certain
10	10	portable electronic devices.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 551, Insurance Code, is amended by
13	13	adding Subchapter E to read as follows:
14	14	SUBCHAPTER E. PORTABLE ELECTRONICS INSURANCE
15	15	Sec. 551.201. DEFINITIONS. In this subchapter, "customer,"
16	16	"portable electronic devices," and "vendor" have the meanings
17	17	assigned by Section 4055.251.
18	18	Sec. 551.202. REQUIRED NOTICE OF TERMINATION OR CHANGE TO
19	19	POLICY. (a) Except as otherwise provided by this subchapter, an
20	20	insurer may terminate or change the terms and conditions of a policy
21	21	of portable electronics insurance only after notice to the master
22	22	or group policyholder and each enrolled customer. Notice under
23	23	this section must be provided not later than the 30th day before the
24	24	date of the termination or change.
25	25	(b) If the insurer changes the terms and conditions of the
26	26	policy, the insurer shall:
27	27	(1) provide to the master or group policyholder a
28	28	revised policy or endorsement; and
29	29	(2) provide to each enrolled customer:
30	30	(A) a revised certificate, revised endorsement,
31	31	updated brochure, or other document indicating that a change in the
32	32	terms and conditions has occurred;
33	33	(B) a summary of the material changes; and
34	34	(C) a disclosure, in a font that is capitalized,
35	35	boldfaced, italicized, or underlined or is larger than or set off
36	36	from the remainder of the document, that enrollment in coverage is
37	37	optional and that provides information on how to discontinue
38	38	enrollment.
39	39	Sec. 551.203. TERMINATION FOR FRAUD OR MISREPRESENTATION.
40	40	(a) An insurer may terminate the coverage of an enrolled customer
41	41	under a portable electronics insurance policy for fraud or material
42	42	misrepresentation in obtaining coverage or in the presentation of a
43	43	claim under the coverage.
44	44	(b) Termination of coverage under this section may not be
45	45	effective before the 15th day after the date the insurer provides
46	46	the customer notice of the termination.
47	47	Sec. 551.204. TERMINATION WITHOUT NOTICE. (a) An insurer
48	48	may terminate the coverage of an enrolled customer under a portable
49	49	electronics insurance policy without notice:
50	50	(1) for nonpayment of premium;
51	51	(2) if the enrolled customer ceases to have an active
52	52	service with the vendor of portable electronics; or
53	53	(3) if the enrolled customer exhausts the aggregate
54	54	limit of liability, if any, under the terms of the portable
55	55	electronics insurance policy.
56	56	(b) If a portable electronics insurance policy is
57	57	terminated under Subsection (a)(3), the insurer must send notice of
58	58	termination to the enrolled customer not later than the 30th day
59	59	after the date of exhaustion of the limit. If the notice is not
60	60	timely sent, the insurer shall continue the customer's coverage,
61	61	and the aggregate limit of liability is waived, until the insurer
62	62	sends the notice of termination to the enrolled customer.
63	63	Sec. 551.205. TERMINATION BY POLICYHOLDER. A master or
64	64	group policyholder who terminates a portable electronics insurance
65	65	policy shall provide notice to each enrolled customer advising the
66	66	enrolled customer of the termination of the policy and the
67	67	effective date of termination. The notice must be provided to the
68	68	enrolled customer not later than the 30th day before the date the
69	69	termination becomes effective.
70	70	Sec. 551.206. FORM OF NOTICE OR CORRESPONDENCE. (a) A
71	71	notice required by this subchapter, or another notice or
72	72	correspondence with respect to a portable electronics insurance
73	73	policy that is required by law, must be:
74	74	(1) in writing; and
75	75	(2) sent within the notice period, if any, specified
76	76	by the statute or rule requiring the notice or correspondence.
77	77	(b) Notwithstanding any other law, the notice or
78	78	correspondence may be sent by mail or by electronic means.
79	79	(c) If the notice or correspondence is mailed:
80	80	(1) it must be sent to the master or group policyholder
81	81	at the policyholder's mailing address specified for this purpose
82	82	and to each affected enrolled customer's last known mailing address
83	83	on file with the insurer; and
84	84	(2) the insurer or master or group policyholder shall
85	85	maintain proof of mailing in a form authorized or accepted by the
86	86	United States Postal Service or other commercial mail delivery
87	87	service.
88	88	(d) If the notice or correspondence is sent by electronic
89	89	means:
90	90	(1) it must be sent to the master or group policyholder
91	91	at the policyholder's e-mail address specified for this purpose and
92	92	to each affected enrolled customer's last known e-mail address as
93	93	provided by the customer to the insurer or master or group
94	94	policyholder; and
95	95	(2) the insurer or master or group policyholder shall
96	96	maintain proof that the notice or correspondence was sent.
97	97	(e) For purposes of Subsection (d), an enrolled customer's
98	98	provision of an e-mail address to the insurer or master or group
99	99	policyholder is considered consent to receive notices and
100	100	correspondence by electronic means.
101	101	(f) A notice or correspondence described by this section may
102	102	be sent on behalf of an insurer or master or group policyholder by a
103	103	licensed agent or agency appointed by the insurer.
104	104	SECTION 2. Section 4055.253, Insurance Code, is amended to
105	105	read as follows:
106	106	Sec. 4055.253. AUTHORITY OF VENDOR OF PORTABLE ELECTRONIC
107	107	DEVICES. (a) A vendor licensed under this subchapter and the
108	108	vendor's employee and authorized representative may act as an agent
109	109	for an authorized insurer in connection with the sale and use of
110	110	portable electronic devices and related services only with respect
111	111	to:
112	112	(1) insurance coverage provided to customers that
113	113	covers portable electronic devices against one or more of the
114	114	following:
115	115	(A) loss;
116	116	(B) theft;
117	117	(C) mechanical failure;
118	118	(D) malfunction;
119	119	(E) damage; or
120	120	(F) other applicable perils; or
121	121	(2) the provision of any other coverage the
122	122	commissioner approves as meaningful and appropriate in connection
123	123	with the use of portable electronic devices or related services.
124	124	(b) A vendor licensed under this subchapter may bill a
125	125	customer for, and collect from a customer payment for, insurance
126	126	coverage provided to the customer under this subchapter.
127	127	(c) An insurer issuing a policy to a licensed vendor is
128	128	considered to have received a premium from a vendor's customer
129	129	enrolled in coverage on the customer's payment of the premium to the
130	130	vendor.
131	131	SECTION 3. Subchapter F, Chapter 4055, Insurance Code, is
132	132	amended by adding Section 4055.256 to read as follows:
133	133	Sec. 4055.256. REQUIRED DISCLOSURES. (a) A licensed
134	134	vendor must separately itemize on a customer's bill any charge to
135	135	the customer for insurance coverage provided under this subchapter
136	136	that is not included in the cost associated with the purchase or
137	137	lease of the covered portable electronic device or related
138	138	services.
139	139	(b) If insurance coverage provided under this subchapter is
140	140	included in the cost associated with the purchase or lease of a
141	141	covered portable electronic device or related services, a licensed
142	142	vendor shall, at the time of the purchase or lease, clearly and
143	143	conspicuously disclose the inclusion of that coverage to the
144	144	customer.
145	145	SECTION 4. This Act takes effect September 1, 2013.