SRC-AAA S.B. 1142 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1142
By: Ellis
Economic Development
4-28-97
As Filed


DIGEST 

Currently, insurers' underwriting guidelines are confidential and the
Texas Department of Insurance and the Office of Public Insurance Counsel
are prohibited from making the guidelines available to the public.
Underwriting guidelines may contribute to the unavailability of insurance
and redlining by insurance companies.  This bill would authorize the Texas
Department of Insurance and the Office of Public Insurance Counsel to
require disclosure of an insurer's underwriting guidelines and making
guidelines available to the public. 

PURPOSE

As proposed, S.B. 1142 would authorize the Texas Department of Insurance
and the Office of Public Insurance Counsel to require disclosure of an
insurer's underwriting guidelines and making guidelines available to the
public. 

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 Article 1.24D, Insurance Code, as follows:

Art. 1.24D. New heading: UNDERWRITING GUIDELINES.  Authorizes the Texas
Department of Insurance (department) or the office of public insurance
counsel (office) to require disclosure to the department or office of an
insurer's underwriting guidelines. Provides that underwriting guidelines
in the possession of the department or office are public information under
Chapter 552, Government Code.  Deletes provisions regarding the
confidentiality of underwriting guidelines.  Deletes Subdivision (b)-(d). 

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