KMS H.B. 1975 75(R)    BILL ANALYSIS


INSURANCE
H.B. 1975
By: Smithee
3-21-97
Committee Report (Unamended)



BACKGROUND 

Under current law, insurers domiciled in Texas are subject to different
laws relating to financial examinations conducted by the Texas Department
of Insurance, depending upon the chapters of the Insurance Code under
which they are licensed.  As a result, TDI often has to examine affiliated
insurers at different times, even though the insurers are common members
of the same holding company groups.  This is administratively burdensome
for both TDI and insurers, and results in more costly examinations for
certain insurance groups. 

PURPOSE

To provide that insurers subject to TDI's examination are governed by
common statutes relating to financial examinations.  This will increase
the efficiency of TDI's examinations by providing that affiliated insurers
may be examined at common intervals.  Costs to certain insurers will
decrease as a result of  efficiencies gained through the use of common
examination intervals. 

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
Updates language throughout bill to reflect commissioner instead of Board
of Insurance. 

SECTION 1. - Amends article 9.22, Insurance Code, to provide that title
insurers are     subject to articles 1.15 and 1.16, Insurance Code. 

SECTION 2. - Amends article 10.33, Insurance Code, to provide that
domestic fraternal     benefit societies are subject to articles 1.15 and
1.16, Insurance Code. 

SECTION 3. - Amends article 10.35, Insurance Code, to provide that foreign
fraternal     benefit societies are subject to articles 1.15 and 1.16,
Insurance Code. 

SECTION 4. - Amends article 13.09, Insurance Code, to provide that
statewide mutual     assessment companies are subject to articles 1.15 and
1.16, Insurance     Code. 

SECTION 5. - Amends article 14.16, Insurance Code, to provide that mutual
assessment     companies and associations are subject to articles 1.15 and
1.16, Insurance   Code. 

SECTION 6. - Amends article 17.22(a), Insurance Code, to provide that
county mutual     insurance companies are subject to articles 1.15, 1.16,
and 4.10 Insurance     Code. 


SECTION 7. - Amends article 20.21, Insurance Code, to provide that group
hospital     service corporations are subject to articles 1.15 and 1.16,
Insurance Code. 
 
SECTION 8. - Amends section 5B(a), article 21.49, Insurance Code, to
provide that the     Texas Catastrophe Property Insurance Association is
subject to articles     1.15 and 1.16, Insurance Code. 

SECTION 9. - Amends section 10, article 21.49-3, Insurance Code, to
provide that     the Texas Medical Liability Insurance Underwriting
Association is subject    to articles 1.15 and 1.16, Insurance Code. 

SECTION 10. - Repeals article 17.18 and section 5B(c), article 21.49,
Insurance Code. 

SECTION 11. - Act takes effect on September 1, 1997.

SECTION 12. - Emergency Clause.