RS H.B. 1287 75(R) BILL ANALYSIS INSURANCE H.B. 1287 By: Counts 4-11-97 Committee Report (Unamended) BACKGROUND Currently, the statute governing operations of the Texas Title Insurance Guaranty Association (the "Association"), Article 9.48 Insurance Code, does not clearly define the procedure for the return of assessments or authorize the Association to transfer funds from its administrative account. This bill will address both problems by amending Section 9 of Article 9.48. These changes will allow excess funds in the Association accounts to go to the guaranty fee account where it can be used to fund the title examiners. The association has three (3) accounts specified by statute. The guaranty fee account for receipt of guaranty fees collected on title policies and is used to pay the expenses of the title examiners employed by the Commissioner of Insurance and the covered claims of title agents. The title account is for receipt of funds assessed against member insurers and used to pay covered claims of insolvent insurers. The administrative account is for receipt of investment income from the other accounts and is used to pay the administrative expenses of the Association. PURPOSE As proposed, HB 1287 would clarify the procedure for transferring funds between the three Association accounts, state the purpose of the funds and define how this money is disbursed. 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 Section 9, Texas Title Insurance Guaranty Act (Article 9.48, Insurance Code) by amending subsection (b) and adding subsection (c) as follows: (b) Amends section to reflect only title account by removing reference to administrative account. Amounts of money remaining in the title account after credit is paid to participants in this fund shall be transferred to the guaranty fee account to be used as provided by this article. (c) If the Title Insurance Guaranty Association determines that money in the administrative account exceeds what is thought to be reasonably necessary for future operations, it shall transfer the excess money to the guaranty fee account to be used as provided by this article. SECTION 2. - Emergency Clause