SRC-JFA H.B. 3031 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 3031
By: Eiland (Patterson)
Economic Development
5-7-97
Engrossed


DIGEST 

Currently, the Texas Catastrophe Property Insurance Association
(association) serves as the insurer of last resort for commercial and
residential properties along the Texas coast.  The association does not
have the flexibility to offer higher deductibles to consumers in return
for lower premiums.  This bill would authorize the association to make
recommendations to the commissioner of insurance (commissioner) for
reductions in coverage or increases in deductibles.  Additionally, this
bill would authorize the commissioner, after notice and hearing, to
accept, modify or reject the recommendations.  

PURPOSE

As proposed, H.B. 3031 authorizes the Texas Catastrophe Property
Association to make recommendations to the commissioner of insurance
(commissioner) for reductions in coverage or increases in deductibles; and
authorizes the commissioner, after notice and hearing, to accept, modify
or reject recommendations.   

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 Section 8(a), Article 21.49, Insurance Code (Texas
Catastrophe Property Insurance Pool Act), to require the Texas Catastrophe
Property Association (association) to file with the commissioner of
insurance (commissioner), rather than the board of insurance, every manual
of classifications, rules, rates which shall include condition charges,
every rating plan, and every modification of any of the foregoing which it
proposes to use.  Authorizes the association to make recommendations to
the commissioner, rather than prohibiting the association from filing
changes, that would result in a reduction of coverages or an increase in
an applicable deductible if any resultant reduction in coverages or
increase in deductibles is accompanied by proposed rate credits.
Authorizes the commissioner, after notice and hearing, to accept, modify,
or reject a recommendation made by the association under this section.
Provides that Article 1.33B of this code does not apply to an action taken
under this subsection.   

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Emergency clause.