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


Senate Research CenterC.S.S.B. 455
By: Duncan
Economic Development
3-19-97
Committee Report (Substituted)


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.
Additionally, this bill would provide that Sections 84.005-84.006, Civil
Practice and Remedies Code, relating to employee and organization
liablity, respectively, apply to certain charitable organizations.   
 
PURPOSE

As proposed, C.S.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.
Additionally, this bill provides that Sections 84.005-84.006, Civil
Practice and Remedies Code, relating to employee and organization
liability, respectively, apply to certain charitable organizations.   

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
provide that Sections 84.005 and 84.006 of this Act apply, rather than do
not apply, to any charitable organization that has, rather than does not
have, liability insurance coverage in effect for an, rather than any, act
or omission for which recovery is sought and to which this chapter
applies.  Authorizes 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.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 84.007(g), Civil Practice and Remedies Code, to propose
that Sections 84.005 and 84.006, Civil Practice and Remedies Code, apply
to any charitable organization that has certain liability insurance
coverage.