BILL ANALYSIS


                                                          H.B. 46
                                           By: McCall (Patterson)
                                             Economic Development
                                                         05-18-95
                              Senate Committee Report (Unamended)
BACKGROUND

Prior to the revision of Article 21.49-2B, Insurance Code, by the
72nd Legislature in 1991, there were no restrictions on an
insurance company's ability to non-renew a personal line policy for
claims history.  As more companies began to non-renew policies for
claims under this article, the Insurance Code was amended to
prohibit insurance companies from canceling for weather related
claims or for less than three non-weather related claims in a
three-year period.  Under current law, however, an insurance
company may still count a claim toward the cancellation or
nonrenewal of a policy, even if the carrier has not paid the claim.

PURPOSE

As proposed, H.B. 46 provides that a claim that is filed but is not
paid or payable under a standard fire, homeowners' and farm or
ranch owners' insurance policy does not count toward cancellation
or nonrenewal of the policy.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 7(a), Article 21.49-2B, Insurance Code,
to declare that a claim under this section does not include a claim
that is filed but is not paid or payable under a standard fire,
homeowners' or farm or ranch owners' insurance policies.

SECTION 2. Effective date: September 1, 1995.
           Makes application of this Act prospective.

SECTION 3. Emergency clause.