CHAPTER 963. AUTOMOBILE CLUBS
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.