R E S O L U T I O N

 1-1           BE IT RESOLVED by the House of Representatives of the State

 1-2     of Texas, 75th Legislature, Regular Session, 1997, That House Rule

 1-3     13, Section 9(a), be suspended in part as provided by House Rule

 1-4     13, Section 9(f), to enable the conference committee appointed to

 1-5     resolve the difference on H.B. No. 1662 to consider and take action

 1-6     on the following specific matters:

 1-7           House Rule 13, Sections 9(a)(2) and (3), are suspended to

 1-8     permit the committee to change Section 3(r), Article 5.101,

 1-9     Insurance Code, to read as follows:

1-10           (r)  In order to avoid the circumvention of the flexible

1-11     rating program, and notwithstanding Article 17.22(b), Insurance

1-12     Code, a county mutual insurance company may not write private

1-13     passenger automobile insurance for any risk at a rate that, after

1-14     the application of all discounts and policy fees, is lower than the

1-15     highest rate allowed under the flexibility band for that line. Not

1-16     later than the 60th day after the effective date of a benchmark

1-17     rate, a county mutual insurance company shall make any filing

1-18     necessary to comply with this subsection. The rates of the county

1-19     mutual insurance company that are in effect on the effective date

1-20     of the benchmark rate continue in effect until the filing is made.

1-21     This subsection does not apply to single interest insurance or

1-22     insurance on mobile homes, motor homes, travel trailers, or

1-23     motorcycles.

1-24           Explanation:  This change is necessary to provide that the

 2-1     requirements of Subsection (r) apply to all county mutual insurance

 2-2     companies but not apply to certain types of insurance and to

 2-3     specify procedures necessary for compliance with the requirements.

                                                                      Counts

                                             _______________________________

                                                   Speaker of the House

               I certify that H.R. No. 1105 was adopted by the House on May

         26, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House