RS H.B. 2793 75(R)    BILL ANALYSIS


INSURANCE
H.B. 2793
By: Averitt
4-17-97
Committee Report (Unamended)



BACKGROUND 
Certain damage to automobile windshields can be repaired rather than
replacing the entire windshield. Some companies offer to waive the
deductible if the policyholder chooses to have such damage repaired, thus
containing costs for the insurance company and the policyholder. There is,
however, no specific authority in the Insurance Code allowing this waiver
of deductible.  

PURPOSE
As proposed, H.B. 2793 would specifically authorize an insurance company
to adopt a uniform and non-discriminatory policy that provides for the
waiver of an insured's deductible when the insured agrees to have damaged
automobile windshield glass on the insured's vehicle repaired rather than
replaced. 

RULEMAKING AUTHORITY
Rulemaking authority is expressly granted in SECTION 1 of the bill
(Subchapter E, Chapter 21, Article 21.79H, Insurance Code) 

SECTION BY SECTION ANALYSIS

SECTION 1. - Amend Subchapter E, Chapter 21, Insurance Code, by adding
21.79H as follows: 

Art. 21.79H. WAIVER OF MOTOR VEHICLE INSURANCE DEDUCTIBLES ON REPAIR OF A
DAMAGED AUTOMOBILE WINDSHIELD.  A motor vehicle insurer may adopt a
uniform waiver of an insured's deductible when the insured agrees to
repair the windshield instead of replacing it. 

SECTION 2. - Effective Date, September 1, 1997 

SECTION 3. - Emergency Clause