H.R. No. 1218
                                  R E S O L U T I O N
    1-1        BE IT RESOLVED by the House of Representatives of the State
    1-2  of Texas, 74th Legislature, Regular Session, 1995, That House Rule
    1-3  13, Section 9(a), be suspended in part as provided by House Rule
    1-4  13, Section 9(f), to enable the conference committee appointed to
    1-5  resolve the differences on House Bill No.  1367 to consider and
    1-6  take action on the following matters:
    1-7        House Rule 13, Section 9(a)(4), is suspended to permit the
    1-8  committee to add the following section to the bill:
    1-9        SECTION 1.  Amend Article 21.21-8, Insurance Code, by adding
   1-10  new Sections 4 and 5 to read as follows:
   1-11        Sec. 4.  AFFIRMATIVE DEFENSE.  A legal entity engaged in the
   1-12  business of insurance as specified in Section 1 of this article is
   1-13  not in violation of the prohibited acts defined in or determined
   1-14  pursuant to Section 2 of this article if the refusal to insure; the
   1-15  refusal to continue to insure; the limiting of the amount, extent,
   1-16  or kind of coverage; or the charging of an individual a different
   1-17  rate for the same coverage is based upon sound actuarial
   1-18  principles.
   1-19        Sec. 5.  EXCEPTION.  A legal entity engaged in the business
   1-20  of insurance as specified in Section 1 of this Article is not in
   1-21  violation of the prohibited acts defined in or determined pursuant
   1-22  to Section 2 of this article if the entity provides insurance
   1-23  coverage only to persons who are required to obtain or maintain
    2-1  membership or qualification for membership in a club, group, or
    2-2  organization so long as membership or membership qualifications are
    2-3  uniform requirements of the insurer as a condition of providing
    2-4  insurance, and are applied uniformly throughout this state, and the
    2-5  entity does not engage in any of the prohibited acts defined in or
    2-6  determined pursuant to Section 2 of the article for persons who are
    2-7  qualified members, except as otherwise provided in this section.
    2-8        Explanation:  This change is necessary to clarify the
    2-9  operation of Article 21.21-8, Insurance Code, as added by H.B. No.
   2-10  668 of the 74th Legislature, Regular Session.