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.