SRC-JFA S.B. 455 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 455
By: Duncan
Economic Development
3-15-97
As Filed


DIGEST 

Currently, Chapter 84, Civil Practice and Remedies Code, sets out minimum
liability insurance limits that charitable organizations must have to
cover employees and volunteers in order to limit the organization's
liability exposure.  The coverages are written in "split limits" requiring
$500,000 per person; $1,000,000 per occurrence for death or bodily injury;
and $100,000 per occurrence for injury to or destruction of property.
Most insurance companies write these types of policies in "combined single
limits" which requires a charitable organization to purchase $1,100,000 in
coverage to comply with the code.  Most companies, however, do not write
liability coverage in that amount.  As a result, many charitable
organizations are having to purchase excessive coverage with increased
premiums.  This bill would authorize the liability insurance coverage for
a charitable organization to be satisfied by the purchase of a $1,000,000
bodily injury and property damage combined single limit policy.  
 
PURPOSE

As proposed, S.B. 455 authorizes liability insurance coverage for a
charitable organization to be satisfied by the purchase of a $1,000,000
bodily injury and property damage combined single limit policy.  

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 84.007(g), Civil Practice and Remedies Code, to
authorize insurance coverage of a charitable organization to be satisfied
by the purchase of a $1,000,000 bodily injury and property damage combined
single limit policy.   

SECTION 2. Emergency clause.
  Effective date: upon passage.