By Eiland, Stiles, Berlanga, Bonnen, Gray,            H.B. No. 3031

         75R10743 PB-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the authority of the commissioner of insurance to

 1-3     approve higher deductibles on coverage provided under certain

 1-4     policies issued through the Texas Catastrophe Property Insurance

 1-5     Association.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7           SECTION 1.  Section 8(a), Texas Catastrophe Property

 1-8     Insurance Pool Act (Article 21.49, Insurance Code), is amended to

 1-9     read as follows:

1-10           (a)  The Association shall file with the Commissioner [Board]

1-11     every manual of classifications, rules, rates which shall include

1-12     condition charges, every rating plan, and every modification of any

1-13     of the foregoing which it proposes to use.  Every such filing shall

1-14     indicate the character and the extent of the coverage contemplated

1-15     and shall be accompanied by the policies and endorsements forms

1-16     proposed to be used, which said forms and endorsements may be

1-17     designed specifically for use by the Association and without regard

1-18     to other forms filed with, approved by, or promulgated by the Board

1-19     for use in this State.  The Association may make recommendations to

1-20     the Commissioner [not file changes] that would result in a

1-21     reduction of coverages or an increase in an applicable deductible

1-22     if any resultant reduction in coverages or increase in deductibles

1-23     is accompanied by proposed rate credits.  After notice and hearing,

1-24     the Commissioner may accept, modify, or reject a recommendation

1-25     made by the Association under this subsection.  Article 1.33B of

 2-1     this code does not apply to an action taken under this subsection.

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

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

 2-4     crowded condition of the calendars in both houses create an

 2-5     emergency and an imperative public necessity that the

 2-6     constitutional rule requiring bills to be read on three several

 2-7     days in each house be suspended, and this rule is hereby suspended.