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).