BILL ANALYSIS



Insurance Committee
H.B. 46
By: McCall
03-8-95
Committee Report (Amended)



BACKGROUND

     Prior to the revision of Article 21.49-2B in 1991 by the 72nd
Legislature, there were no restrictions on an insurance company's
ability to non-renew a personal line policy for claims history.  As
more and more companies began to non-renew policies for claims
under this Article,  the insurance code was amended to establish
some guidelines.  Insurance companies could no longer cancel for
weather related claims, the insured had to have more than three
non-weather related claims in a three year period.  However, an
insurance company could consider\count a claim in regard to
cancellation or no-renewal of a policy, even if the carrier had not
paid the claim.


PURPOSE

     The purpose of this bill is to clarify if a policyholder pays
a claim under a homeowner's insurance policy and files the claim
with the their insurance carrier, the claim shall not be consider
by the insurance company for cancellation or refusal to renew the
policy.


RULEMAKING AUTHORITY

     It is the committee's opinion that this bill does not
expressly grant any additional rulemaking authority to a state
officer, department, agency or institution.


SECTION BY SECTION ANALYSIS

SECTION 1.

     Amends Section 7(a), Article 21.49-2B, Insurance Code by
defining a claim that if filed but is not paid by an insurance
carrier shall not be consider in the non renewal or cancellation of
a policy.

SECTION 2. Effective Date 

SECTION 3. Emergency Clause


EXPLANATION OF AMENDMENT

     The committee amendment establishes if a claim is not payable
by an insurance policy and the policyholder pays the claim, the
claim shall not be consider in the cancellation or non-renewal of
the policy.






SUMMARY OF COMMITTEE ACTION

     In accordance with House rules, H.B. 46 was heard in a Public
Hearing on March 8, 1995.  The Chair laid out H.B. 46 and
recognized Representative McCall to explain the bill.  The Chair
recognized the following persons to testify in support of H.B 46:

     Bob Huxel, Texas Association of Insurance Agents
     Rob Schneider, Consumers Union
     Edwin Benjamin, TX Loss Consultant Association.
     Otis Fagan, Private Homeowner
     Maxine Aaronson, Texas Neighborhoods Together
     Lawrence DeMartino, San Antonio Coalition of Neighborhood
Assoc.of Texas
     Don Wilmard, Dallas Homeowners League
     Ephesian Harden, Friendship Homeowner Association
     Victoria Frayser, Houston Homeowners Association
     Mary Wallace, San Antonio Coalition of Neighborhood Assoc.

     No one testified in opposition to H.B. 46.

     The Chair recognized Representative Averitt who offered an
amendment to H.B. 46 and moved the Committee adopt the amendment. 
The Chair heard no objections and the amendment was adopted.  The
Chair recognized Representative Averitt who moved the Committee
report H.B. 46 as amended to the full House with the recommendation
it do pass and be printed. Representative Counts seconded the
motion and the motion prevailed by the following vote:
AYES (7); NAYES (0); ABSENT (2); PNV (0).