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).