BILL ANALYSIS


                                                        H.B. 1933
                                         By: De La Garza (Rosson)
                                             Economic Development
                                                          5-24-95
                              Senate Committee Report (Unamended)
BACKGROUND

Article 5.65A of the Insurance Code requires each company or
association that writes workers' compensation insurance to provide
the policyholder, upon written request of the policyholder, a list
of claims charged against the policy, payments made and reserves
established on each claim, and a statement explaining the effect of
claims on premium rates.  There is no provision in this article
requiring the company or association to fulfill the policyholder's
request within a certain time period.

PURPOSE

As proposed, H.B. 1933 amends provisions regarding the amount of
claims information that a company or association is required to
give a policyholder.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the commissioner of insurance under SECTION 2 (Articles
21.59(c), (f), and (g), Insurance Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 5.65A(b), Insurance Code, to require the
company or association to provide the information to the
policyholder in writing by the 30th day after the company or
association receives the policyholder's written request for
information.  Provides that the information is considered to be
provided on the date that the information is received by the U.S.
Postal Service or personally delivered.  Makes a nonsubstantive
change.

SECTION 2. Amends Article 21.59, Insurance Code, as follows:

     Art.  21.59.  New heading: PROVIDING CLAIMS INFORMATION TO
     CERTAIN INSUREDS.  (a) and (b) Make no changes.
     
     (c) Sets forth the information required to be supplied to an
       insured making a request under Subsection (b) of this
       article, including any information required by rule of the
       commissioner of insurance, rather than the State Board of
       Insurance.  Makes nonsubstantive changes.
       
       (d) Requires each insurer that writes property and casualty
       insurance, on the policyholder's written request, to provide
       the policyholder with a list of claims charged against the
       policy and the payments made on each claim.  Provides that
       this subsection does not apply to a workers' compensation
       insurance policy subject to Article 5.65A.
       
       (e) Redesignates existing Subsection (d).
       
       (f) Redesignates existing Subsection (e).  Makes conforming
       and nonsubstantive changes.
       
       (g) Makes a conforming change.
       
       SECTION 2.   Effective date: September 1, 1995.
           Makes application of this Act prospective beginning
January 1, 1996.

SECTION 3. Emergency clause.