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


Senate Research CenterC.S.S.B. 1155
By: Harris
Economic Development
4-28-97
Committee Report (Substituted)


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 and provides additional
licensing requirements. 

PURPOSE

As proposed, C.S.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 and provides additional licensing
requirements. 

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 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 9.36B, as
follows: 

Art. 9.36B. ADDITIONAL LICENSING REQUIREMENTS.  Sets forth additional
licensing requirements for a title insurance agent or direct operation.
Sets forth the applicability of this article.  Sets forth requirements for
being bonded or alternatives to being bonded. Sets forth requirements of a
material agreement.  Provides that this article does not impair any
insurance activity expressly authorized by federal law.  Defines
"affiliate." 

SECTION 3. Provides that this Act takes effect September 1, 1998, for
title agents or direct operations which are currently licensed. Provides
that for all new application this Act takes effect September 1, 1997.
Provides that  title agents or direct operations are not required to file
the bond required by Article 9.37(c), Insurance Code, as added by this
Act, before April 1, 1999. 
 
SECTION 4. Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

 Amends Article 9.37, Insurance Code, to authorize the commissioner of
insurance to revoke or suspend a license for not disclosing certain
information which was required to be disclosed. 

SECTION 2.

Deletes proposed SECTION 2.  Amends Chapter 9, Insurance Code, by adding
9.36B, to set  forth additional licensing requirements. 

SECTION 3.

Provides that this Act takes effect September 1, 1998, for title agents or
direct operations which are currently licensed, and for all new
application this Act takes effect September 1, 1997.  Provides that  title
agents or direct operations are not required to file the bond required by
Article 9.37(c), Insurance Code, as added by this Act, before April 1,
1999.