1-1     By:  Eiland, et al. (Senate Sponsor - Patterson)      H.B. No. 3031

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

 1-3     May 5, 1997, read first time and referred to Committee on Economic

 1-4     Development; May 16, 1997, reported favorably by the following

 1-5     vote:  Yeas 8, Nays 0; May 16, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the authority of the commissioner of insurance to

 1-9     approve higher deductibles on coverage provided under certain

1-10     policies issued through the Texas Catastrophe Property Insurance

1-11     Association.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Section 8(a), Texas Catastrophe Property

1-14     Insurance Pool Act (Article 21.49, Insurance Code), is amended to

1-15     read as follows:

1-16           (a)  The Association shall file with the Commissioner [Board]

1-17     every manual of classifications, rules, rates which shall include

1-18     condition charges, every rating plan, and every modification of any

1-19     of the foregoing which it proposes to use.  Every such filing shall

1-20     indicate the character and the extent of the coverage contemplated

1-21     and shall be accompanied by the policies and endorsements forms

1-22     proposed to be used, which said forms and endorsements may be

1-23     designed specifically for use by the Association and without regard

1-24     to other forms filed with, approved by, or promulgated by the Board

1-25     for use in this State.  The Association may make recommendations to

1-26     the Commissioner [not file changes] that would result in a

1-27     reduction of coverages or an increase in an applicable deductible

1-28     if any resultant reduction in coverages or increase in deductibles

1-29     is accompanied by proposed rate credits.  After notice and hearing,

1-30     the Commissioner may accept, modify, or reject a recommendation

1-31     made by the Association under this subsection.  Article 1.33B of

1-32     this code does not apply to an action taken under this subsection.

1-33           SECTION 2.  This Act takes effect September 1, 1997.

1-34           SECTION 3.  The importance of this legislation and the

1-35     crowded condition of the calendars in both houses create an

1-36     emergency and an imperative public necessity that the

1-37     constitutional rule requiring bills to be read on three several

1-38     days in each house be suspended, and this rule is hereby suspended.

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