SRC-AAA H.B. 2373 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2373
By: Olivo (Haywood)
Economic Development
4-28-97
Engrossed


DIGEST 

Currently, the Insurance Code authorizes insurers to increase or decrease
their capital stock after notice has been published in a newspaper of
general circulation for four consecutive weeks.  This current practice is
costly to the insurer.  The Department of Insurance reviews changes in
capital stock for the protection of consumers and policyholders. This bill
provides for notice of an increase in capital stock for five consecutive
days in a newspaper of general circulation.   

PURPOSE

As proposed, H.B. 2373 provides for notice of an increase in  an insurance
company's capital stock for five consecutive days in a newspaper of
general circulation.   

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 Articles 8.13 and 8.23, Insurance Code, to provide for
notice of an increase in capital stock of an insurance company for five
consecutive days, rather than four weeks, in a newspaper of general
circulation.  Makes conforming changes. 

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.