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.