RS S.B. 1498 75(R)    BILL ANALYSIS


INSURANCE
S.B. 1498
By: Sibley (Eiland)
5-12-97
Committee Report (Unamended)


BACKGROUND

Currently, the benchmark rate is set annually by the commissioner of
insurance (commissioner) by line of insurance.  An insurer is required to
file with the commissioner its proposed rate within 30 days of the
effective date of the benchmark rate.  An insurer may establish the
effective date of the new rate.  This date may not be later than 60 days
after the date of filing is received by the Department of Insurance.  The
Insurance Code does not specify whether an insurer may file and amend its
existing rate up until the effective date of its new rate.  This bill
would authorize insurers to continue using previously filed rates or make
additional rate filings based on the previous benchmark rate.   
 
PURPOSE

As proposed, S.B. 1498 authorizes insurers to continue using previously
filed rates or make additional rate filings with the commissioner of
insurance based on the insurer's previous benchmark rate.   

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 3(e), Article 5.101, Insurance Code, to
authorize an insurer, subject to the limitations contained in Subsection
(p) of this section, to continue its previously filed rates or make
additional rate filings based on the previous benchmark rate for new
policies or policies renewing prior to the specified effective date of its
new rate.  

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective to January 1, 1998.  

SECTION 3. Emergency clause.