SRC-AAA S.B. 1155 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1155
By: Harris
Economic Development
3-31-97
As Filed


DIGEST 

Currently, the Insurance Code does not provide for the regulation 
of controlled business 
organizations such as builders, realtors, developers or lenders 
who own title companies.  This bill 
authorizes the commissioner of insurance to suspend or revoke a 
title insurance agent's license if any 
fact or condition at the time of the original application would 
have warranted the refusal to issue the 
license.  Additionally, this bill would require all title 
companies to produce at least 50 percent of 
their business from sources that are not controlled by the owners.

PURPOSE

As proposed, S.B. 1155 authorizes the commissioner of insurance 
to suspend or revoke a title 
insurance agent's license if any fact or condition at the time of 
the original application would have 
warranted the refusal to issue the license.  Additionally, this 
bill requires all title companies to 
produce at least 50 percent of their business from sources that 
are not controlled by the owners.

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of insurance 
in SECTION 2 (Chapter 9, Article 
9.60, Insurance Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 9.37, Insurance Code, to authorize the 
commissioner of insurance 
to revoke or suspend a license for certain reasons.

SECTION 2. Amends Chapter 9, Insurance Code, by adding Article 
9.60, as follows:

Art. 9.60.  ACTIVE TITLE INSURANCE AGENTS OR DIRECT 
OPERATIONS ONLY 
TO BE LICENSED. Provides that active title insurance agents 
or direct operations are not 
to be licensed unless certain provisions are met.  Provides 
that this article does not prohibit 
an applicant the right to choose his or her own agent or to 
prohibit certain entities from 
handling business which the applicant controls through a 
person.  Sets forth requirements for 
an applicant who is making an original application for 
license.  Requires the commissioner 
to adopt rules to implement this article.

SECTION 3. Effective date: September 1, 1997.