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.