By:  Sibley                                            S.R. No. 891

                                  SENATE RESOLUTION

 1-1           BE IT RESOLVED by the Senate of the State of Texas, 75th

 1-2     Legislature, Regular Session, 1997, That Senate Rule 12.03 be

 1-3     suspended in part as provided by Senate Rule 12.08 to enable the

 1-4     conference committee appointed to resolve the differences on House

 1-5     Bill No. 1662 to consider and take action on the following specific

 1-6     matters:

 1-7           Senate Rules 12.03(2) and (3), are suspended to permit the

 1-8     committee to change Subsection (r), Section 3, 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.

 2-1           Explanation:  This change is necessary to provide that the

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

 2-3     companies but not apply to certain types of insurance and to

 2-4     specify procedures necessary for compliance with the requirements.

 2-5                                  ______________________________________

 2-6                                          President of the Senate

 2-7                                       I hereby certify that the above

 2-8                                  Resolution was adopted by the Senate

 2-9                                  on May 27, 1997, by the following vote:

2-10                                  Yeas 31, Nays 0.

2-11                                  ______________________________________

2-12                                          Secretary of the Senate

2-13                                  ______________________________________

2-14                                            Member, Texas Senate