Amend CSHB 1533 as follows:
      (1)  On page 1, strike line 24 and substitute the following:
      SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is
amended by adding Article 21.56B to read as follows:
      Art. 21.56B. INDEPENDENCE OF COUNSEL.  (a)  The commissioner,
in consultation with the State Bar of Texas, shall adopt rules
under this article to ensure the independence of counsel provided
to an insured under a casualty insurance policy. The rules must:
            (1)  require notice to the insured of the insured's
right to independent counsel to represent the insured's interests;
and
            (2)  specify circumstances in which, because of
conflict of interest or other relevant issues, an insurance company
may not offer or provide to the insured the services of an attorney
in the employ of or under contract to the insurance company.
      (b)  An insurance company that, under a policy of casualty
insurance, is obligated to defend an insured under the policy, may
not offer or provide to the insured the services of an attorney in
the employ  of or under contract to the insurance company unless
the insurance company complies with rules adopted by the
commissioner under this article.
      (c)  This article applies to any insurance company that
issues a policy of casualty insurance that is delivered, issued for
delivery, or renewed in this state, including a policy written by a
county mutual insurance company, Lloyd's plan company, surplus
lines insurer, or a reciprocal or interinsurance exchange.
      SECTION 2.  This Act takes effect September 1, 1999.
      SECTION 3.  Article 21.21C, Insurance Code, as added by this
Act,
      (2)  On page 2, between lines 4 and 5, insert the following:
      SECTION 4.  (a)  The commissioner of insurance shall adopt
the rules required by Article 21.56B, Insurance Code, as added by
this Act, not later than December 15, 1999.
      (b)  Article 21.56B, Insurance Code, as added by this Act,
applies only to an insurance policy that is delivered, issued for
delivery, or renewed on or after January 1, 2000.  A policy that is
delivered, issued for delivery, or renewed before January 1, 2000,
is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
this purpose.
      (3)  On page 2, line 5, strike "SECTION 3" and substitute
"SECTION 6".