74R9324 DLF-D
By Shields H.B. No. 2257
Substitute the following for H.B. No. 2257:
By Shields C.S.H.B. No. 2257
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain inquiries made by the Texas Department of
1-3 Insurance and information from those inquiries.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 1.24, Insurance Code, is amended to read
1-6 as follows:
1-7 Art. 1.24. To Make Inquiries. (a) The department <Board>
1-8 is authorized to address any reasonable inquiries to any insurance
1-9 company or insurance agent, or to the holder of any permit,
1-10 certificate of registration, or other authorization issued or
1-11 existing under the authority or authorization of this code, in
1-12 relation to the company's, agent's, or holder's business condition,
1-13 or any matter connected with its regulated activities or
1-14 transactions which the department <Board> may deem necessary for
1-15 the <public good or for a> proper discharge of the department's
1-16 <its> duties. It shall be the duty of the addressee to answer such
1-17 inquiries in writing not later than the 30th <10th> day after the
1-18 date the request is received. A response made under this article
1-19 is for the exclusive use of the department in the discharge of its
1-20 regulatory duties. Information provided in a response that is
1-21 otherwise privileged or confidential by law remains privileged or
1-22 confidential. Information provided in a response that is
1-23 proprietary in nature shall be maintained as confidential by the
1-24 department. Use of the response or the information provided in the
2-1 response <unless and until introduced into evidence> at an
2-2 administrative hearing or in a court of competent jurisdiction must
2-3 comply with applicable rules of evidence and procedure.
2-4 (b) An inquiry made under this article must be signed by the
2-5 commissioner or by one of the four associate commissioners with
2-6 jurisdiction over the subject matter of the inquiry. The
2-7 commissioner or associate commissioner may not delegate the duty
2-8 imposed by this subsection to another individual.
2-9 (c) A response and the information contained in a response
2-10 is not subject to Chapter 552 or 2001, Government Code, or
2-11 discovery from the department under the Texas Rules of Civil
2-12 Procedure.
2-13 SECTION 2. This Act applies only to inquiries made by the
2-14 Texas Department of Insurance on or after the effective date of
2-15 this Act. An inquiry made before the effective date of this Act is
2-16 governed by the law as it existed before the effective date of this
2-17 Act and that law is continued in effect for this purpose.
2-18 SECTION 3. The importance of this legislation and the
2-19 crowded condition of the calendars in both houses create an
2-20 emergency and an imperative public necessity that the
2-21 constitutional rule requiring bills to be read on three several
2-22 days in each house be suspended, and this rule is hereby suspended,
2-23 and that this Act take effect and be in force from and after its
2-24 passage, and it is so enacted.