BILL ANALYSIS


                                                        H.B. 2952
                                       By: Patterson, L.P. (Cain)
                                             Economic Development
                                                         05-24-95
                              Senate Committee Report (Unamended)
BACKGROUND

Current law provides that the commissioner of insurance is the
lawful attorney for service of a person or insurer who engages in
the unauthorized business of insurance.  If the commissioner of
insurance discharged the duty of forwarding the citation to the
person or insurer, the plaintiff must make that discharge part of
the record in the trial court.  If the plaintiff fails to take the
necessary measures to assure proof of delivery by the commissioner,
any judgment rendered against the person or insurer who does not
otherwise appear in the suit is void.

PURPOSE

As proposed, H.B. 2952 requires the commissioner of insurance, upon
receiving the return receipt, to issue a certificate showing the
service and proof of delivery by a return receipt for certified or
registered mail to the plaintiff and clerk of the court or agency
where the case is pending.

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 Section 3(f), Article 1.36, Insurance Code, as
follows:

     (f)(1) Requires the commissioner of insurance, upon receiving
     the return receipt, to issue a certificate showing the service
     and proof of delivery by a return receipt for certified or
     registered mail to the plaintiff and clerk of the court or
     agency where the case is pending.
     
     (2) Created from existing text.
       
       SECTION 2.   Effective date: September 1, 1995.

SECTION 3. Emergency clause.