RS C.S.H.B. 652 75(R) BILL ANALYSIS INSURANCE C.S.H.B. 652 By: Haggerty 5-6-97 Committee Report (Substituted) BACKGROUND Currently, there is no statutory provision which would prohibit insurers from issuing guaranteed renewable policies to persons over the age of sixty. However, the Texas Department of Insurance passed a regulation prohibiting insurers from issuing these types of policies for less than a five year period. Therefore, insurers cannot issue policies guaranteed renewable until a consumer is sixty-five years of age, leaving a potential four-year period where consumers would be unable to purchase this type of policy and be able to receive Medicare benefits. PURPOSE This bill would allow insurers to issue guaranteed renewable policies guaranteed for a minimum of two years, to people up to the age sixty-five. Because of the two year required minimum of the term of policy, insurers would be able to sell this policy to anyone over the age of sixty, which would enable insurers to provide guaranteed renewable policies to people until they are sixty-five years of age and able to receive Medicare. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 3.70-13, Insurance Code. (a) No change. (b) Adds language to allow insurers to issue guaranteed renewable policies to persons sixty-one years of age or older for a minimum of two years. SECTION 2. Provides a severance clause in the event that a portion of the Act is declared unconstitutional. SECTION 3. Provides that any rule adopted in violation of this Act is null and void and of no consequence. SECTION 4. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE Substitute deletes SECTION 4 stating that this law shall control if found to conflict with any other law, rule, regulation, or provision of the code. Renumbers sections accordingly.