BILL ANALYSIS


                                                        H.B. 1472
                                              By: Driver (Leedom)
                                             Economic Development
                                                         05-22-95
                              Senate Committee Report (Unamended)
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, H.B. 1472 repeals Section 4(c), Article 21.28,
Insurance Code, prohibiting a person who obtains certain excess
private passenger auto liability insurance from obtaining insurance
through the Texas Automobile Insurance Plan Association.

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. Repealer: Section 4(c), Article 21.81, Insurance Code
(Texas Automobile Insurance Plan Association - Duties and Functions
of the Association).

SECTION 2. Effective date: September 1, 1995.
           Makes application of this Act prospective beginning
January 1, 1996.

SECTION 3. Emergency clause.