SRC-AAA S.B. 1895 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1895
By: Sibley
Economic Development
3-26-97
As Filed


DIGEST 

Currently, the Texas Department of Insurance (department) is prohibited
from requiring an insurer to comply with certain rules adopted by the
National Association of Insurance Commissioners (NAIC) unless authorized
by statute.  There is considerable pressure and recommendations for the
state to adopt model rules and regulations by the NAIC.  This bill would
prohibit the department from requiring insurers to comply with NAIC rules
and regulations unless authorized by a specific statute relating to the
subject matter of the rule or regulation. 

PURPOSE

As proposed, S.B. 1895 prohibits the Texas Department of Insurance from
requiring insurers to comply with National Association of Insurance
Commissioners rules and regulations unless authorized by a specific
statute relating to the subject matter of the rule or regulation. 

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 1.27, Insurance Code, to prohibit the Texas
Department of Insurance from requiring an insurer to comply with any rule,
regulation, directive, or standard adopted by the  
National Association of Insurance Commissioners unless application of the
rule is expressly authorized by a specific statute relating to the subject
matter of the rule, regulation, directive, or standard and is approved by
the commissioner of insurance. 

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