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).