By Whitmire S.B. No. 1256
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.