80C81(2) PB

 

SECTION _____.  CONFORMING AMENDMENT.  Chapter 722, Transportation Code, is amended by adding Section 722.015 to read as follows:

Revised Law

Sec. 722.015.  PROVISION OF CERTAIN INSURANCE SERVICES BY AUTOMOBILE CLUB.  (a)  An automobile club may provide insurance services only as provided by this section.

(b)  An automobile club may provide accidental injury and death benefit insurance coverage to a member through purchase of a group policy of insurance issued to the automobile club for the benefit of its members.  The coverage must be purchased from an insurance company authorized to engage in the business of that type of coverage in this state.  The automobile club shall provide each member covered by the insurance a certificate of participation.  The certificate of participation must state on its face in at least 14-point black boldfaced type that the certificate is only a certificate of participation in a group accidental injury and death policy and is not automobile liability insurance coverage.

(c)  An automobile club may endorse insurance products and refer members to agents or insurers authorized to provide the insurance products in this state.  The automobile club or an agent of the automobile club may not receive consideration for the referral.

(d)  Except as provided by Subsection (e), an automobile club performing services permitted by this section is not subject to regulation under the insurance laws of this state because of the performance of those services.

(e)  An automobile club may sell insurance products to a member for a consideration separate from the amount that the member pays for membership in the automobile club if the automobile club is properly licensed as an agent under the applicable provisions of the Insurance Code.

(f)  In addition to reimbursement services described by Section 722.002(2), an automobile club may contract with a member to:

(1)  reimburse the member for expenses the member incurs for towing, emergency road service, and lockout or lost key services; and

(2)  provide immediate destination assistance and trip interruption service.

(g)  The insurance laws of this state do not apply to reimbursement provided under Subsection (f).

(h)  Sections 722.002(1), 722.008(a)(1), and 722.014 do not apply to this section.  (V.T.I.C. Art. 21.80.)

Source Law

Art. 21.80.  (a)  An automobile club as defined in Section 722.002(2), Transportation Code, may provide insurance service only as provided by this section.

(b)  An automobile club may provide a member accidental injury and death benefit insurance coverage through purchase of a group policy of insurance issued to the automobile club for the benefit of its members.  The coverage must be purchased from an insurance company authorized to sell that type of coverage in this state.  The automobile club shall provide each member covered by the insurance a certificate of participation.  The certificate of participation must state on its face in at least 14-point black boldfaced type that the certificate is only a certificate of participation in a group accidental injury and death policy and is not motor vehicle liability insurance coverage.

(c)  An automobile club may endorse insurance products and refer members to agents or insurers authorized to provide the insurance products in this state.  The automobile club or an agent of the automobile club may not receive remuneration for the referral.

(d)  Except as provided by Subsection (e) of this article, an automobile club performing services permitted by this article is not subject to regulation under the insurance laws of this state because of the performance of those services.

(e)  An automobile club may sell insurance products to a member for a consideration separate from the amount that the member pays for membership in the automobile club if the automobile club is properly licensed as an agent under the applicable provisions of this code.

(f)  In addition to reimbursement services enumerated in Section 722.002(2), Transportation Code, an automobile club may contract with a member to reimburse the member for expenses the member incurs for towing, emergency road service, and lockout or lost key service and to provide immediate destination assistance and trip interruption service.  The insurance laws of this state do not apply to reimbursement provided under this subsection.

Revisor's Note

(1)  V.T.I.C. Article 21.80(b) refers to an insurance company authorized "to sell" a particular type of insurance coverage in this state.  The revised law substitutes "to engage in the business of" for "to sell" for consistency with terminology used in the Insurance Code because "to engage in the business of" is the phrase used in that code to signify that an insurance company is authorized to sell a particular type of insurance coverage.

(2)  V.T.I.C. Article 21.80(b) refers to "motor vehicle liability insurance."  The revised law substitutes "automobile liability insurance" for "motor vehicle liability insurance" for consistency with terminology used in the Insurance Code and because "automobile liability insurance" is the term more commonly used to describe the kind of insurance that provides coverage for motor vehicles.