CHAPTER 963. AUTOMOBILE CLUBS - Texas Statutes

INSURANCE CODE

TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES

SUBTITLE H. OTHER ENTITIES

CHAPTER 963. AUTOMOBILE CLUBS

Sec. 963.001. DEFINITION. In this chapter, "automobile club"

has the meaning assigned by Section 722.002, Transportation Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1E.001, eff. April 1, 2009.

Sec. 963.002. PROVISION OF CERTAIN INSURANCE SERVICES BY

AUTOMOBILE CLUB. (a) An automobile club may provide insurance

services only as provided by this chapter.

(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.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1E.001, eff. April 1, 2009.

Sec. 963.003. CERTIFICATE OF PARTICIPATION. (a) The automobile

club shall provide each member covered by insurance described by

Section 963.002 a certificate of participation.

(b) 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1E.001, eff. April 1, 2009.

Sec. 963.004. CERTAIN ACTIVITIES PROHIBITED. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1E.001, eff. April 1, 2009.

Sec. 963.005. CERTAIN TRANSPORTATION-RELATED SERVICES. In

addition to reimbursement services described by Section

722.002(2), Transportation Code, 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1E.001, eff. April 1, 2009.

Sec. 963.006. APPLICABILITY OF INSURANCE LAWS. (a) Except as

provided by Subsection (b), an automobile club performing

services permitted by this chapter is not subject to regulation

under the insurance laws of this state because of the performance

of those services.

(b) 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.

(c) The insurance laws of this state do not apply to

reimbursement provided under Section 963.005.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1E.001, eff. April 1, 2009.