SRC-SLL H.B. 2887 75(R)    BILL ANALYSIS


Senate Research CenterH.B. 2887
By: Dutton (Whitmire)
State Affairs
5-17-97
Engrossed


DIGEST 

Currently, a title insurance agent may engage in any lawful promotional,
educational activities on the agent's behalf.  Clarification of current
law is necessary to remove promotional, educational, recreational, and
entertainment expenses from the title insurance rate base and clarify that
these expenditures are not illegal rebate which would be a violation of
Article 9.30(AA), Insurance Code. Elimination of these expenses from the
title insurance rate base would lower title insurance rates for the
consumer.  C.S.S.B. 1257 would clarify existing law allowing lawful
promotional, educational activities on behalf of title insurance companies
and to eliminate these expenses from the rate base. 

PURPOSE

As proposed, H.B. 2887 outlines provisions regarding promotional or
educational activities of title insurance entities, and title insurance
policy provisions. 

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 Article 9.07(b), Insurance Code, to prohibit the
commissioner of insurance of the State of Texas (commissioner) from
considering expenses relating to promotional and educational activities
authorized by Section B(6), Article 9.30, of this code. 

SECTION 2. Amends Article 9.30, Insurance Code, by adding Subsection F, as
follows: 

Sec. F. Provides that a legal promotional or educational activity
described by Section B(6) of this Article is not a rebate or discount
prohibited under Section A of this article. 

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.