BILL ANALYSIS


                                                         H.B. 774
                                             By: Smithee (Sibley)
                                             Economic Development
                                                          5-24-95
                              Senate Committee Report (Unamended)
BACKGROUND

On November 29, 1994, the commissioner of insurance submitted the
Department of Insurance's legislative proposals to the House
Committee on Insurance Legislative Oversight Subcommittee. However,
some of the statutes in these proposals contain incorrect lettering
and other technical problems.

PURPOSE

As proposed, H.B. 774 amends current legislation by relettering and
correcting cross-reference errors in the Insurance Code.

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 8, Article 1.14-2, Insurance Code, by
redesignating existing Subsections (d)-(l) as (e)-(m).

SECTION 2. Amends Article 5.15B(b), Insurance Code, to provide that
information provided with an application under Subsection (c),
rather than (d), Article 5.15, of this code is exempt from the
disclosure requirements of this article.

SECTION 3. Amends Article 9.16(2), Insurance Code, to require a
reserve to consist of the reserve which has been established
pursuant to Article 9.12, rather than 9.11, of this code. Makes
nonsubstantive and conforming changes.

SECTION 4. Amends Section 6(c), Article 9.48, Insurance Code,  to
require funds derived from guaranty fees to be authorized only for
the payment of audit expenses as provided by Paragraph (13), rather
than (8), Section 14(c) of this article.

SECTION 5. Amends the heading of Section 4A, Article 21.07,
Insurance Code, as follows:

  Sec. 4A. EXAMINATION OF APPLICANT FOR LICENSE TO WRITE LIFE
        INSURANCE UPON ANY ONE LIFE IN EXCESS OF $7,500.

SECTION 6. Amends Section 9, Article 3.75, Insurance Code, to
provide that, after the effective date of the repeal of Articles
3.39 Part III, 3.72, and 3.73, Insurance Code, all separate
accounts established under such articles are deemed and shall be
construed to be established under Article 3.75; provided any
policy, contract, or agreement issued before such repeal in
accordance with the provisions of such articles, shall be construed
under and continue to be subject to all provisions of the
applicable article under which they were issued, as amended and in
effect at the time of such repeal.

SECTION 7. Emergency clause.
           Effective date: upon passage.