By Junell H.B. No. 1339
75R5344 SAW-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to insurance industry advisory organizations.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 3(c), Article 5.73, Insurance Code, is
1-5 amended to read as follows:
1-6 (c) If, after a hearing, the department [Board] finds that
1-7 the furnishing of specified services by an advisory organization
1-8 involves any act or practice which is unfair or unreasonable or
1-9 otherwise inconsistent with the provisions of this subchapter or
1-10 with the applicable laws of this State, it may issue a written
1-11 order specifying in what respects such act or practice is unfair or
1-12 unreasonable or otherwise inconsistent with the provisions of law
1-13 and requiring the discontinuance of such act or practice. In
1-14 addition to any other remedies available at law, the department
1-15 [Board] may impose any sanction authorized under Article 1.10 of
1-16 this code.
1-17 SECTION 2. Sections 4(a) and (c), Article 5.73, Insurance
1-18 Code, are amended to read as follows:
1-19 (a) The department [Board] shall annually require an audit
1-20 of any advisory organization that provides statistics or other
1-21 information to the department [Board] in a proceeding to set rates.
1-22 The audit shall be conducted under rules adopted by the
1-23 commissioner [Board], at the expense of the advisory organization.
1-24 The audit must examine the advisory organization's method of
2-1 collecting, analyzing, and reporting data to assure the accuracy of
2-2 data. The audit may examine source documents within individual
2-3 companies. Except for individual company information, an audit is
2-4 public information.
2-5 (c) Notwithstanding any provision to the contrary, reporting
2-6 of data by an insurer under this article does not relieve the
2-7 insurer of responsibility of reporting that data directly to the
2-8 department [Board] at the department's [Board's] request.
2-9 SECTION 3. Section 5, Article 5.73, Insurance Code, is
2-10 amended to read as follows:
2-11 Sec. 5. The authority granted to the department under this
2-12 article is subject to review by the Sunset Advisory Commission
2-13 under Chapter 325, Government Code (Texas Sunset Act), during that
2-14 commission's periodic review of the Texas Department of Insurance
2-15 [expires September 1, 1997].
2-16 SECTION 4. This Act takes effect September 1, 1997.
2-17 SECTION 5. The importance of this legislation and the
2-18 crowded condition of the calendars in both houses create an
2-19 emergency and an imperative public necessity that the
2-20 constitutional rule requiring bills to be read on three several
2-21 days in each house be suspended, and this rule is hereby suspended.