BILL ANALYSIS H.B. 885 By: Madden 04-10-95 Committee Report (Unamended) BACKGROUND Currently, the amount of insurance coverage allowed under group life insurance policies are insufficient to protect the financial security of an individual which must depend on the policy's benefits in the event of the insured's untimely demise. Present coverage limits should be adjusted upward to allow for inflation that has occurred over the past 20 years. This increase will provide greater financial support to offset higher living expenses incurred by individuals or households. PURPOSE As proposed House Bill 885 would raise the amount of group life insurance that can be extended by one employer from one hundred to two hundred and fifty thousand dollars in the aggregate, or up to seven as opposed to four times the annual compensation of the employee. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends the following Subsections of Section 1, Article 3.50, Insurance Code, (d); 5(d); 7A(d); by increasing the policy limits to $250,000. Amends Section 1, Subsection (8) to require a policy issued by the Veterans Land Board of Texas for the purchase of land to be in compliance with Subchapter I, Chapter 161, Natural Resource Code. SECTION 2. Effective date, with transition language for policies issued prior to January 1, 1996. SECTION 3. Emergency Clause. SUMMARY OF COMMITTEE ACTION In accordance with House Rules, H.B. 885 was heard in a public hearing on March 15, 1995. The Chair laid out H.B. 885 and recognized the following person to testify neutrally on H.B. 885: A.W. "Woody" Pogue, Texas Department of Insurance. No one testified in opposition to or in support of H.B. 885. The Chair left H.B. 885 pending before the Committee. Pursuant to an announcement by the Reading Clerk, the House Committee on Insurance met in a formal meeting on April 10, 1995. The Chair laid out H.B. 885 and recognized Representative Averitt who moved the Committee report H.B. 885 as filed to the full House with the recommendation that it do pass, be printed, and sent to the Committee on Local and Consent Calendars. Representative Shields seconded the motion and the motion prevailed by the following vote: AYES (7); NAYES (0); ABSENT (2); PNV (0).