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