SRC-JFA H.B. 1901 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1901
By: Lewis, Glenn (Shapleigh)
Economic Development
4-27-97
Engrossed


DIGEST 

Currently, in determining what sanction to assess against a 
licensee for violation of the Insurance 
Code or Texas Department of Insurance rules, the commissioner of 
insurance may only order 
restitution to injured parties in lieu of license cancellation or 
revocation.  When consumers have lost 
substantial sums of money as the result of illegal activity by a 
licensee, the commissioner must 
choose whether to revoke a license so that the licensee may not 
continue in the business of insurance 
and possibly cause additional harm or to order restitution so 
that those people whom  the licensee 
has already harmed may be made whole.  This bill would allow the 
commissioner to use any 
combination of remedies available under Article 1.10, Insurance 
Code.  

PURPOSE

As proposed, H.B. 1901 authorizes the commissioner of insurance 
to use any combination of 
remedies available under Article 1.10, Insurance Code.  

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 7(a), Article 1.10, Insurance Code, to 
authorize the commissioner 
of insurance (commissioner) to order one or more of the following 
sanctions:  Suspend such 
authorization for a time certain, not to exceed one year; order 
the holder or possessor of such 
authorization to cease and desist from the specified activity 
determined to be in violation of specific 
provisions of this code or rules and regulations of the 
commissioner or from failure to comply with 
such provisions of this code or such rules and regulations; 
direct the holder or possessor of such 
authorization to pay an administrative penalty in accordance with 
Article 1.10E of this code; or direct 
the holder or possessor of such authorization to make complete 
restitution to all Texas residents, 
Texas insureds, and entities operating in Texas harmed by the 
violation or failure to comply.  Deletes 
text authorizing the commissioner to order one of the 
aforementioned sanctions in lieu of 
cancellation or revocation of a licensee.  Makes a nonsubstantive 
changes.   

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 1997.