SRC-JFA H.B. 1477 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1477
By: Bonnen (Brown)
Economic Development
5-17-97
Engrossed


DIGEST 

Currently, the Texas Catastrophe Property Insurance Association (TCPIA) is
composed of all Texas property and casualty insurers.  TCPIA is governed
by a nine member board of directors (board). The commissioner of insurance
appoints the board members representing insurance agents and consumers.
All of the board members serve on a volunteer basis and are not
compensated for their services.  Additionally, the board members are not
protected from liability for most actions undertaken in the course of
their official duties.  This lack of liability protection may be a reason
why some individuals are unwilling to serve on the board.  This bill would
establish immunity from liability of the TCPIA board of directors arising
for any action or failure to act in the performance of its duties. 
 
PURPOSE

As proposed, H.B. 1477 sets forth immunity from liability for the board of
directors of the Texas Catastrophe Property Insurance Association.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 9A(a), Article 21.49, Insurance Code,  to
authorize any person insured under this Act who is aggrieved by an act,
ruling, or decision of the Texas Catastrophe Property Insurance
Association (TCPIA) relating to payment of, the amount of, or the denial
of a claim to elect to bring an action, against TCPIA in a court of
competent jurisdiction or to appeal the act, ruling, or decision under
Section 9 of this Article, except as provided by Section 10 of this
Article.   

SECTION 2. Amends Section 10, Article 21.49, Insurance Code, to provide
that there shall be no liability on the part of and no cause of action of
any nature shall arise against a director of TCPIA for any action or
failure to act in the performance of official powers and duties under this
Article, except that immunity from liability and suit does not extend to
any bad faith act or failure to act, or to an act or failure to act that
involves gross negligence, intentional misconduct, or a knowing violation
of the law.  Makes a conforming change.   

SECTION 3. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 4. Emergency clause.