BILL ANALYSIS

Senate Research Center                                   H.B. 770
                                             Economic Development
                                                          5-24-95
                              Senate Committee Report (Unamended)
BACKGROUND

Under current law, there exists a conflict between Articles 1.28
and 1.36, Insurance Code.  Section 1(e), Article 1.28, requires a
domestic insurance company to appoint the commissioner of insurance
as attorney for service of process; Section 2(b), Article 1.36,
requires a domestic insurance company to appoint a person in Texas
as attorney for service of process.

PURPOSE

As proposed, H.B. 770 makes Article 1.28, Insurance Code, conform
to the provision of Article 1.36, Insurance Code, requiring a
domestic insurance company to appoint a person in Texas as attorney
for service of process.

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 and the controlling person of
the affiliated insurance holding company system (controlling
person) to appoint and maintain a person in this state as attorney
for service of process as provided by Section 2(b), Article 1.36,
Insurance Code.  Authorizes the commissioner of insurance
(commissioner) to accept service and notify the insurance company,
under Section 3, Article 1.36, Insurance Code, if the insurance
company does not appoint or maintain an attorney for acceptance of
process.  Deletes language requiring the domestic insurance company
and controlling person to appoint the commissioner as their
attorney.

SECTION 2. Effective date: September 1, 1995.

SECTION 3. Emergency clause.