BILL ANALYSIS



S.B. 598
By: Ratliff (Driver)
05-10-95
Committee Report (Unamended)


BACKGROUND

     Current law states that if an insurer delays payment of a
claim for a period exceeding the time limit provided, then the
insurer shall pay 18 percent interest on a claim and attorney fees
as damage.  However, this section has been interpreted to mean that
the insurer must bring suit against the insurance company in order
to receive the interest.  Many other states have statutes which
provide for automatic payment of interest in cases of life
insurance benefits.

PURPOSE

     As proposed, S.B. 598 requires attorney fees to be taxed as
part of the costs in a case where a claim is made pursuant to a
policy of insurance and the insurer liable is not in compliance
with certain requirements.

RULEMAKING AUTHORITY

     It is the committee's opinion that this bill does not
expressly grant any additional rulemaking authority to a state
officer, department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 6, Article 21.55, Insurance Code, to
require attorney fees to be taxed, if suit is filed, as part of the
costs in a case where a claim is made pursuant to a policy of
insurance and the insurer liable is not in compliance with
requirements of this article.  Deletes language requiring the
insurer to be liable to pay reasonable attorney fees as may be
determined by the trier of fact.

SECTION 2. Effective date: September 1, 1995.

SECTION 3. Emergency clause.

SUMMARY OF COMMITTEE ACTION

     In accordance with House rules, S.B. 598 was heard in a public
hearing on May 10, 1995.  The Chair laid out S.B. 598 and
recognized Representative Averitt who moved the Committee report
S.B. 598 as engrossed to the full House with the recommendation
that it do pass, be printed, and be sent to the Committee on Local
and Consent.  Representative De La Garza seconded the motion and
the motion prevailed by the following vote: AYES: (7); NAYES: (0);
PNV: (0); ABSENT: (2).