BILL ANALYSIS H.B. 1511 By: Duncan 04-12-95 Committee Report (Unamended) BACKGROUND In the case of Ronald Stracner, Indivigually and as Natural Parent and Guardian of Tanya Stracner, et al., v. United Services Automobile Association; United Services Automobile Association v. Scott Hestilow, 777 S.W. 2d 378 (Tex. 1989), the court interpreted Section 5 of Article 5.06-1 to require insurers to pay underinsured motor vehicle insurance claims on an "excess" basis, such that amounts recoverable under underinsured motor vehicle insurance coverage could not be reduced by amounts recovered under the underinsured motorist's motor vehicle liability insurance coverage. PURPOSE As proposed H.B. 1511 would amend Article 5.06-1, Section (5), Insurance Code to require reduction of amounts recoverable under underinsured motor vehicle insurance coverage by the amounts recovered or recoverable under an underinsured motorist's motor vehicle liability insurance 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. Amends Article 5.06-1, Section (5), Insurance Code to require reduction of amounts recoverable under underinsured motor vehicle insurance coverage by the amounts recovered or recoverable under an underinsured motorist's motor vehicle liability insurance coverage. SECTION 2. Effective Date; applies the bill prospectively from September 1, 1996. SECTION 3. Emergency Clause SUMMARY OF COMMITTEE ACTION In accordance with House Rules, H.B. 1511 was heard in a public hearing on March 29, 1995. The Chair laid out H.B. 1511 and recognized Representative Duncan to explain the bill. No one testified in support of, in opposition to, or neutrally on H.B. 1511. Representative Duncan requested H.B. 1511 be left pending before the Committee. The Chair left H.B. 1511 as pending business before the Committee. On April 5, 1995, the Chair laid out H.B. 1511 as pending business and recognized Representative Duncan to once again explain the bill. The Chair recognized the following persons to testify in support of H.B. 1511: Richard S. Geiger, AFACT; Denise Ruggiero, State Farm Insurance Companies. The Chair recognized the following person to testify in opposition to H.B. 1511: Bill Whitehurst, Texas Trail Lawyers Association. No one testified neutrally on H.B. 1511. The Chair left H.B. 1511 pending before the Committee. SUMMARY OF COMMITTEE ACTION (continuation) On April 12, 1995, the Chair laid out H.B. 1511 as pending business. The Chair recognized Representative Counts who moved the Committee report H.B. 1511 as filed to the full House with the recommendation that it do pass and be printed. Representative Driver seconded the motion and the motion prevailed by the following vote: AYES (9); NAYS (0); ABSENT (0); PNV (0).