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).



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