RS C.S.H.B. 2097 75(R)BILL ANALYSIS INSURANCE C.S.H.B. 2097 By: Uher 5-9-97 Committee Report (Substituted) BACKGROUND Under current insurance law, notice of change in policy is provided to the policy holder prior to implementation. CSHB 2097 would require the Texas Association of Counties, a quasigovernmental entity that offers risk pool management, to comply with insurance industry standards by providing written notice of a change in policy to all affected counties. PURPOSE CSHB 2097 provides for adequate notice to a risk pool policy holder of any change in policy and establishes education requirements for risk pool administrators. 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 Article 715C, Vernon's Texas Civil Statutes by adding Subsections (h) and (i) to read as follows: (h) A change in coverage provided through a self-insurance fund to a governmental unit under this act may not take effect until the 60th day after the governmental unit is notified of the change via certified mail. Cancellation of coverage due to nonpayment of the coverage may take effect on the 10th day after the governmental unit is notified by certified mail of the cancellation. (i) An individual responsible for the administration of a local government risk pool must hold a bachelor's degree in a field relating to insurance, business management, law, or finance, or hold a specified professional designation. The administrator must have at least five years experience in administration of risk pools, commercial insurance production or management and participate in a minimum of 20 hours of continuing education, accepted by the trustees, and relating to risk pools. SECTION 2 - Effective Date: September 1, 1997. SECTION 3. - Emergency Clause COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1. Changes section being amended to Article 715C, Vernon's Texas Civil Statutes to read as follows: (h) Changes reference from "risk pool" to "self insurance fund," and from "individual" to "governmental unit." Removes "benefit" from section. Adds language requiring the governmental unit be notified by certified mail of a change in coverage. Adds language regarding cancellation of coverage as a result of nonpayment may take effect on the 10th day after the date the governmental unit is notified of the cancellation. (i) Adds fields of business management and law to the type of field an administrator may have training in order to be qualified to run the local government risk pool. Removes old Subdivision (B). Changes amount of experience from 10 years to five, and adds term "production" to commercial insurance. Deletes old SECTIONS 3 and 4, and renumbers accordingly.