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).