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.
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