SRC-JFA S.B. 1293 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1293
By: Cain
Education
4-14-97
As Filed


DIGEST 

Currently, policy forms for life, health, accident, and hospitalization
insurance may be filed and used unless disapproved by the Department of
Insurance (department) after 60 days from the department's receipt of the
form.  The approval of these forms has caused a backlog at the department
resulting in the possible delay of approvals up to two years.  This bill
would remove policy forms for life, endowment, and annuity insurance filed
with the department from the approval process.   

PURPOSE

As proposed, S.B. 1293 provides that at the expiration of 60 days after
receipt of a filed form, contract or policy by the Department of
Insurance, a form, contract, or policy shall, other than a policy,
contract or certificate of life, term or endowment insurance, group life
or term insurance, industrial life insurance, annuity or pure endowment
contract or group annuity contract, be deemed approved by the department
except under certain conditions.   

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 3.42, Insurance Code, as follows: 

(a)-(b)  Requires no policy, certain contracts, certain insurance, or
certain annuities to be delivered, issued or used in this state by a life,
accident, health or casualty insurance company, a mutual life insurance
company, mutual insurance company other than life, mutual or natural
premium life insurance company, general casualty company, Lloyds,
reciprocal, or interinsurance exchange, fraternal benefit society, group
hospitalization service or any other insurer, unless the form of said
policy, contract or certificate has been filed with the Department of
Insurance (department) as provided by Subsections (c) and (e), rather than
Subsection (d), of this article.  Makes conforming changes.  

(d)  Requires a form, contract or policy, at the expiration of 60 days
after receipt of a filed form, contract or policy by the department, other
than a policy, contract or certificate of life, term or endowment
insurance, group life or term insurance, industrial life insurance,
annuity or pure endowment contract or group annuity contract, to be deemed
approved by the department unless prior thereto it has been affirmatively
either approved or disapproved by the written order of the commissioner of
insurance (commissioner), or the insurer has requested in writing that the
approval period be extended for an additional period not to exceed 45
days.  Makes conforming changes.   

(e)-(q) Redesignates existing Subsections (d)-(m) as (e)-(q).  Makes
conforming changes. 

SECTION 2. Severability clause.  

SECTION 3. Requires any rule adopted by the commissioner which is not in
conformity to the standards set forth in SECTION 1 of this Act to be null
and void and of no force or effect.   

 SECTION 4. Provides that if a provision of this Act is in conflict with
any other law, rule, regulation, or provision of the Insurance Code, this
Act shall control.  

SECTION 5. Emergency clause.
  Effective date: upon passage.