BILL ANALYSIS Insurance Committee 02-20-95 Introduced Committee Report (Unamended) BACKGROUND: On November 29, 1994, then Texas Department of Insurance Commissioner J. Robert Hunter submitted the Department's legislative proposals to the House Committee on Insurance Legislative Oversight Subcommittee. House Bill 770 represents a technical correction to the Texas Insurance Code by potentially reducing the number of citations served on the Commissioner of Insurance as an agent for service of process. House Bill 770 would amend Article 1.28 of the Insurance Code to remove a conflict with Article 1.36 of the Code. As amended, Article 1.28 would require domestic insurance companies to designate a person in Texas as their attorney for service of process, but continues to allow the Commissioner to accept service of process if a company does not designate a person for this purpose. PURPOSE: The purpose of this bill is to Amend Article 1.28 of the Insurance Code to remove a conflict with Article 1.36 of the Code in regard to how service of process may be affected. 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 1(e), Article 1.28, Insurance Code to require a domestic insurance company to appoint and maintain a person in this state as attorney for service of process as provided by Section 2(b), Article 1.36 of the Insurance Code and authorizes the commissioner to accept service and notify the insurance company as proscribe in Section 3, Article 1.36 of the Code if the insurance company does not appoint or maintain an attorney for acceptance of process. SECTION 2: Effective Date SECTION 3: Emergency Clause SUMMARY OF COMMITTEE ACTION In accordance with House Rules, House Bill 770 was heard in a Public Hearing on February 22, 1995. The Chair recognized Jose Montemayor with the Texas Department of Insurance as a resource witness who testified on H.B. 770. No one testified in support of or in opposition to H.B. 770. Representative Counts moved that the full committee adopt H.B. 770 and that it be reported favorably to the full House with the recommendation that it do pass and be printed. Representative De La Garza seconded the motion and the motion prevailed by the following vote: AYES (9), NAYS (0), PNV (O), NAYS (0). -1-