1-1     By:  Dutton (Senate Sponsor - Whitmire)               H.B. No. 2887

 1-2           (In the Senate - Received from the House May 16, 1997;

 1-3     May 16, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 18, 1997, reported favorably by the following vote:

 1-5     Yeas 12, Nays 0; May 18, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to promotional or educational activities of title

 1-9     insurance entities.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Article 9.07(b), Insurance Code, is amended to

1-12     read as follows:

1-13           (b)  The commissioner shall have the duty to fix and

1-14     promulgate the premium rates to be charged by title insurance

1-15     companies and title insurance agents created or operating under

1-16     this Chapter for policies of title insurance or other promulgated

1-17     or approved forms, and the premiums therefor shall be paid in the

1-18     due and ordinary course of business.  Premium rates for reinsurance

1-19     as between title insurance companies qualified under this Chapter

1-20     shall not be fixed or promulgated by the commissioner, and title

1-21     insurance companies may set such premium rates for reinsurance as

1-22     such title insurance companies shall agree upon.  Under no

1-23     circumstance shall any premium be charged for any policy of title

1-24     insurance or other promulgated or approved forms different from

1-25     those fixed and promulgated by the commissioner, except for

1-26     premiums charged for reinsurance.  The premium rates fixed by the

1-27     commissioner shall be reasonable to the public and nonconfiscatory

1-28     as to the title insurance companies and title insurance agents.

1-29     For the purpose of collecting data on which to determine the proper

1-30     rates to be fixed, the commissioner shall require all title

1-31     insurance companies and all title insurance agents operating in

1-32     Texas to submit such information in such form as the commissioner

1-33     may deem proper, all information as to loss experience, expense of

1-34     operation, and other material matters for the commissioner's

1-35     consideration.  In fixing the rate of premiums, the commissioner

1-36     shall consider all [relevant] income and expenses of title

1-37     insurance companies and title insurance agents attributable to

1-38     Texas title insurance business, but may not consider expenses

1-39     relating to promotional and educational activities authorized by

1-40     Section B(6), Article 9.30, of this code.

1-41           SECTION 2.  Article 9.30, Insurance Code, is amended by

1-42     adding Section F to read as follows:

1-43           F.  A legal promotional or educational activity described by

1-44     Section B(6) of this Article is not a rebate or discount prohibited

1-45     under Section A of this Article.

1-46           SECTION 3.  This Act takes effect September 1, 1997.

1-47           SECTION 4.  The importance of this legislation and the

1-48     crowded condition of the calendars in both houses create an

1-49     emergency and an imperative public necessity that the

1-50     constitutional rule requiring bills to be read on three several

1-51     days in each house be suspended, and this rule is hereby suspended.

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