RS H.B. 1976 75(R)    BILL ANALYSIS


INSURANCE
H.B. 1976
By: Smithee
3-21-97
Committee Report (Unamended)



BACKGROUND 
Under current law, insurers domiciled in Texas are subject to different
net worth requirements depending upon the chapters of the Insurance Code
under which they are licensed, even if they expose themselves to similar
risks.  Also, certain insurers are not subject to the risk based capital
requirements that the Texas Department of Insurance adopts via
administrative regulations. 

PURPOSE
To subject certain property and casualty insurers to TDI's risk based
capital requirements by specifying that an exemption from these
requirements is limited to those insurers that write business only in this
state and that are not required by law to have capital stock.   

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 subsection (f), article 2.20, Insurance Code, by
specifying that it     applies to insurers that write business only in
this state and that are     not required by law to have capital stock. 

SECTION 2. - Act takes effect on September 1, 1997.

SECTION 3. - Provides that the change in law made by the act applies only
to the     minimum free surplus or guaranty fund and free surplus of
an insurer on or after January 1, 1998. 

SECTION 4. - Emergency Clause.