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.