1-1 By: Shields (Senate Sponsor - Harris) H.B. No. 2257
1-2 (In the Senate - Received from the House May 15, 1995;
1-3 May 17, 1995, read first time and referred to Committee on Economic
1-4 Development; May 23, 1995, reported favorably by the following
1-5 vote: Yeas 9, Nays 0; May 23, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to certain inquiries made by the Texas Department of
1-9 Insurance and information from those inquiries.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Article 1.24, Insurance Code, is amended to read
1-12 as follows:
1-13 Art. 1.24. To Make Inquiries. (a) The department <Board>
1-14 is authorized to address any reasonable inquiries to any insurance
1-15 company or insurance agent, or to the holder of any permit,
1-16 certificate of registration, or other authorization issued or
1-17 existing under the authority or authorization of this code, in
1-18 relation to the company's, agent's, or holder's business condition,
1-19 or any matter connected with its regulated activities or
1-20 transactions which the department <Board> may deem necessary for
1-21 the <public good or for a> proper discharge of the department's
1-22 <its> duties. It shall be the duty of the addressee to answer such
1-23 inquiries in writing not later than the 30th <10th> day after the
1-24 date the request is received. A response made under this article
1-25 is for the exclusive use of the department in the discharge of its
1-26 regulatory duties. Information provided in a response that is
1-27 otherwise privileged or confidential by law remains privileged or
1-28 confidential. Information provided in a response that is
1-29 proprietary in nature shall be maintained as confidential by the
1-30 department. Use of the response or the information provided in the
1-31 response <unless and until introduced into evidence> at an
1-32 administrative hearing or in a court of competent jurisdiction must
1-33 comply with applicable rules of evidence and procedure.
1-34 (b) An inquiry made under this article must be signed by the
1-35 commissioner or by one of the four associate commissioners with
1-36 jurisdiction over the subject matter of the inquiry. The
1-37 commissioner or associate commissioner may not delegate the duty
1-38 imposed by this subsection to another individual.
1-39 (c) A response and the information contained in a response
1-40 is not subject to Chapter 552 or 2001, Government Code, or
1-41 discovery from the department under the Texas Rules of Civil
1-42 Procedure.
1-43 SECTION 2. This Act applies only to inquiries made by the
1-44 Texas Department of Insurance on or after the effective date of
1-45 this Act. An inquiry made before the effective date of this Act is
1-46 governed by the law as it existed before the effective date of this
1-47 Act, and that law is continued in effect for that purpose.
1-48 SECTION 3. The importance of this legislation and the
1-49 crowded condition of the calendars in both houses create an
1-50 emergency and an imperative public necessity that the
1-51 constitutional rule requiring bills to be read on three several
1-52 days in each house be suspended, and this rule is hereby suspended,
1-53 and that this Act take effect and be in force from and after its
1-54 passage, and it is so enacted.
1-55 * * * * *