HBA-PDH H.B. 205 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 205
By: Burnam
Insurance
2/16/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, a fire marshall, fire chief, or police officer may request
certain information from insurance companies regarding a fire loss of
$1,000 or more as a means of investigating insurance fraud.  H.B. 205
expands the insurance fraud investigative powers of a fire marshall, fire
chief, or police officer to include the investigation of insurance fraud in
cases of burglary, robbery, and death claims. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter E, Chapter 21, Insurance Code, by adding
Article 21.49C, as follows: 

Art. 21.49C.  REPORT OF CLAIMS INFORMATION ABOUT BURGLARY, ROBBERY, OR
DEATH.  (a) Authorizes a peace officer or certain fire department officials
in this state to request release of information obtained by an insurance
company investigating a claimed burglary or robbery loss or a death claim
seeking life insurance proceeds.  Requires the company to release the
requested information and cooperate with the authorized official requesting
the information.  Provides the specific information that may be included in
the report. 

(b)   Provides that this article does not authorize a public official or
agency to adopt or require any form of periodic report by an insurer. 

(c)  Requires an insurance company to notify a requesting official, furnish
the relevant material from an investigation, cooperate with the law
enforcement agency, and allow inspection of records, for a request made on
a claim the insurance company has reason to believe is false, fraudulent,
or exaggerated. 

(d)  Exempts an insurance company or a person providing information on the
company's behalf from liability for providing oral or written information
under this article, unless fraud or malice is shown. 

(e)  Requires officials and department personnel to keep confidential the
information received under this article until the information is released
in a criminal or civil proceeding. 

(f)  Provides that an official under this article may be required to
testify in a civil action regarding the information the official possesses
regarding a claim seeking recovery under a policy held by an insurance
company. 

(g)  Prohibits a person from intentionally refusing to comply with the
requirements of this article.   

 SECTION 2.  Effective date: September 1, 1999.
                       Makes application of this Act prospective. 

SECTION 3.  Emergency clause.