By Dutton                                       H.B. No. 2886

      75R9090 DLF-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to certain rules and regulations adopted by the

 1-3     commissioner of insurance with respect to title insurance.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Article 9.21, Insurance Code, is amended to read

 1-6     as follows:

 1-7           Art. 9.21. AUTHORITY OF COMMISSIONER [BOARD OF INSURANCE OF

 1-8     THE STATE OF TEXAS].  (a)  If any company operating under the

 1-9     provisions of this Act shall engage in the characters of business

1-10     described in Subsection (a)  or Subsection (b)(1), [Subdivisions

1-11     (1) and (2) of] Article 9.03, of this code [Act], in such manner as

1-12     might  bring it within the provision of any other regulatory

1-13     statute now or hereafter to be in force within the State of Texas,

1-14     all examination and regulation shall be exercised by the

1-15     commissioner [Board] rather than any other state agency which may

1-16     be named in such other laws, so long as such corporation engages in

1-17     the title guaranty or insurance business.

1-18           (b)  Subject to Subsection (c) of this article, the

1-19     commissioner [The Board] is hereby vested with power and authority

1-20     under this Act to promulgate and enforce rules and regulations

1-21     prescribing underwriting standards and practices upon which title

1-22     insurance contracts are to be issued, and is hereby further vested

1-23     with the power and authority to define risks which may not be

1-24     assumed under title insurance contracts, including risks that may

 2-1     not be assumed because of the insolvency of the parties to the

 2-2     transaction.  In addition, the commissioner [Board] is hereby

 2-3     vested with power and authority to promulgate and enforce all other

 2-4     such rules and regulations which in the discretion of the

 2-5     commissioner [Board] are deemed necessary to accomplish the

 2-6     purposes of this Act.

 2-7           (c)  The commissioner may not promulgate or enforce any rule

 2-8     or regulation that results in discrimination, in rates or

 2-9     otherwise, to the public or to any title insurance agent or title

2-10     insurance company.

2-11           SECTION 2.  This Act takes effect September 1, 1997.

2-12           SECTION 3.  The importance of this legislation and the

2-13     crowded condition of the calendars in both houses create an

2-14     emergency and an imperative public necessity that the

2-15     constitutional rule requiring bills to be read on three several

2-16     days in each house be suspended, and this rule is hereby suspended.