Texas Insurance Code - Not Codified - Article 21.80. Licensing Requirements For Automobile Clubs
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Art. 21.80. LICENSING REQUIREMENTS FOR AUTOMOBILE
CLUBS. (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.
Added by Acts 1999, 76th Leg., ch. 1530, Sec. 5.01, eff. Sept. 1,
1999.
Article: 21.61 21.70 21.72 21.77 21.79 21.79E 21.79H 21.80 21.81 25.01 25.02 25.03 25.04 25.05 25.06
Last modified: August 11, 2007
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