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.