RS C.S.H.B. 3031 75(R) BILL ANALYSIS INSURANCE C.S.H.B. 3031 By: Eiland 4-16-97 Committee Report (Substituted) BACKGROUND The TCPIA is prohibited from recommending to the Commissioner the approval of higher deductibles or reductions of coverage for windstorm and hail insurance policies issued by the Association. Deductibles remain at the same levels which existed in 1972 when the Association first began writing windstorm and hail insurance. PURPOSE This bill will allow the Association to make recommendations to the Commissioner that result in reduction of coverages or changes in deductibles if such reductions in coverage or changes in deductibles are accompanied by proposed rate credits. 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 Section 8(a), Article 21.49, Insurance Code, as follows: Provides that the Association may make recommendations to the Commissioner for reduction in coverages and increases in an applicable deductible if the resultant reduction in coverage or increase in deductible is accompanied by proposed rate credits. The Commissioner must give notice and hold a hearing to accept, modify or reject the recommendation of the Association. Article 1.33B of the Insurance Code does not apply to actions taken under this article. SECTION 2. Act take effect September 1, 1997. SECTION 3. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The committee substitute corrects the applicable section of Article 21.49 to be amended from Section 8A to Section 8. A provision is added to indicate that Article 1.33B of the code does not apply to action taken under this subsection. Other changes are non-substantive.