BILL ANALYSIS


                                                     C.S.S.B. 490
                                                       By: Bivins
                                             Economic Development
                                                          2-23-95
                                   Committee Report (Substituted)
BACKGROUND

Article 5.33A of the Insurance Code, originally called the "dead-bolt" law, now includes premium discounts for homeowner policy
holders who have security systems placed in their homes. To receive
the discount from insurers, an inspection from a certified police
officer is required. Inspectors are liable for providing that
service, and due to liability problems with inspectors, consumers
have had difficulties receiving the premium discount.

PURPOSE

As proposed, C.S.S.B. 490 provides qualifications for premium
reduction for homeowners insurance coverage for persons installing
home security devices and allows a person to submit a certificate
of installation to receive a premium discount.

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 1, Article 5.33A, Insurance Code, by
adding Subdivisions (4) and (5), to define "U.L." and "siren."

SECTION 2. Amends Section 2, Article 5.33A, Insurance Code, to
entitle a person to premium reduction for homeowners insurance
coverage if that person's property, rather than that person, is
found by an inspector to be in compliance with specifications under
Section 6 of this article; or if the person's property is in
compliance with Section 6(a)(2) of this article, the person
possesses a certificate of installation issued by the installer of
the electronic burglar alarm and the person furnishes the
certificate to the insurer.

SECTION 3. Amends Section 3(a), Article 5.33A, Insurance Code, to
make a conforming change.

SECTION 4. Amends Section 4(a), Article 5.33A, Insurance Code, to
make a conforming change.

SECTION 5. Amends Section 6(a), Article 5.33A, Insurance Code, to
provide that a person's property qualifies for a homeowners
insurance premium reduction if the property meets with certain
minimum specifications regarding doors and windows; or the property
is equipped with an electronic burglar alarm system in which the
doors and windows meet certain specifications with respect to
protective and security devices, the system includes a siren
audible inside the house, and except where prohibited by other law
or ordinance, a siren audible outside the house; all equipment,
except for sirens, is U.L. or Factory Mutual Research Corporation
listed, the system is monitored by a U.L. listed central station;
a backup battery is included; and the equipment sales and system
installation and monitoring are in compliance with the Private
Investigators and Private Security Agencies Act.

SECTION 6. Amends Section 7, Article 5.33A, Insurance Code, to make
a conforming change.

SECTION 7. Amends Section 8(a), Article 5.33A, Insurance Code, to
make a nonsubstantive change.

SECTION 8. Effective date: September 1, 1995.
           Makes application of this Act prospective from January
1, 1996.

SECTION 9. Emergency clause.