BILL ANALYSIS

Insurance Committee

By: Driver
03-29-95
Committee Report (Substituted)

BACKGROUND

     Under Article 21.81, Insurance Code, a person who obtains
private passenger auto liability insurance coverage that exceeds
the minimum coverage required by state law is ineligible for
coverage under the assigned risk plan of the Texas Automobile
Insurance Plan Association.  An insurance agent who sells excess
coverage to a person whose minimum liability coverage is provided
through the association is subject to penalties under the Insurance
Code.

PURPOSE

     As proposed, House Bill 1472 would allow a person to be
eligible for coverage through the Texas Automobile Insurance Plan
Association regardless of whether the person is covered by excess
auto liability coverage.

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. Repeals Section 4(c), Article 21.81, Insurance Code.

SECTION 2. Effective September 1, 1995.  Applies only to policy
delivered, issued for         delivery, or renewed after January 1,
1996.

SECTION 3.  Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

     H.B. 1472 as filed would have amended Section 4(c), Article
21.81, Insurance Code by  providing for a person who is otherwise
eligible for insurance through the Texas Automobile Insurance Plan
Association is eligible without regard to whether the person is
covered by auto liability coverage in excess of the minimum amount
required under the Safety-Responsibility Act.  H.B. 1472 as
substituted would repeal Section 4(c), Article 21.81, Insurance
Code.

SUMMARY OF COMMITTEE ACTION

     In accordance with House Rules, H.B. 1472 was heard in a
public hearing on March 29, 1995.  The Chair laid out H.B. 1472 and
recognized Representative Driver who offered a substitute to H.B.
1472 and moved the Committee adopt the substitute to H.B. 1472. 
The Chair heard no objections and the substitute to H.B. 1472 was
adopted.

     The Chair recognized the following person to testify in
support of H.B. 1472:  Bob Huxel, Texas Association of Insurance
Agents.  No one testified in opposition to or neutrally on H.B.
1472.

     The Chair recognized Representative Dutton who moved the
Committee report H.B. 1472 as substituted to the full House with
the recommendation that it do pass and be printed.  Representative
G. Lewis seconded the motion and the motion prevailed by the
following vote:
AYES (6); NAYES (0); ABSENT (3); PNV (0).