BILL ANALYSIS


                                                        S.B. 1411
                                                       By: Harris
                                             Economic Development
                                                         04-28-95
                                       Committee Report (Amended)
BACKGROUND

Previously, the Texas Automobile Assigned Risk Plan (now the Texas
Auto Insurance Plan) provided in its plan of operation a credit to
insurance companies that wrote insurance policies for senior
citizens and youthful drivers.  This credit counted towards the
total number of policies the companies were required to write for
the plan.  

When the law authorizing the plan was rewritten, the language
authorizing these credits was changed to include "underserved
geographic areas."  In adopting the new plan of operation, the
senior citizen and youthful driver credits were dropped.  Deletion
of these credits means that insurers no longer have an incentive to
write auto insurance on a voluntary basis for senior citizens and
youthful drivers.

PURPOSE

As proposed, S.B. 1411 specifies certain incentive programs to be
included among those incentive programs designed to minimize the
use of the Texas Automobile Insurance Plan Association.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the commissioner of insurance under SECTION 1 (Section 3(e),
Article 21.81, Insurance Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 3(e), Article 21.81, Insurance Code, to
include among incentive programs, designed to encourage members of
the Texas Automobile Insurance Plan Association to write insurance
on a voluntary basis and to minimize the use of the association as
a means to obtain insurance, such approved programs that recognize
the voluntary writing of bodily injury and property damage
liability insurance for male vehicle drivers under 25 years of age,
for all vehicle operators 65 years of age or older, and for vehicle
operators in underserved geographic areas.  Requires the value of
credits for male vehicle operators under 25 years of age and for
all vehicle operators 65 years of age or older to be not less than
one credit for the voluntary writing of one vehicle in these
classes.  Requires the value of credits for underserved geographic
areas to be determined and designated by the commissioner by rule.

SECTION 2. Emergency clause.
           Effective date: 90 days after adjournment.