SRC-PNG H.B. 643 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 643
76R15054 AJA-DBy: Flores (Madla)
Economic Development
5/14/1999
Engrossed


DIGEST
 
H.B. 643 defines "insurer," provides that an insurer pursuing a claim
against a person under a right of subrogation must obtain a judgment or
written settlement agreement for the amount of the claim before the insurer
may submit information to a credit reporting bureau regarding the amount of
the claim or the person's failure to pay the amount of the claim, and
provides that a violation of this article is an unfair or deceptive act or
practice and is subject to penalty and sanction.  

PURPOSE

As proposed, H.B. 643 establishes regulations regarding the reporting of
certain information by an insurer to a credit reporting bureau. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter A, Chapter 5, Insurance Code, by adding
Article 5.06-8, as follows:  

Art. 5.06-8. REPORTING OF AN AMOUNT CLAIMED UNDER A RIGHT OF SUBROGATION.
(a) Defines "insurer."    

(b) Requires an insurer pursuing a claim against a person under a right of
subrogation to obtain a judgment or written settlement agreement for the
amount of the claim before the insurer may submit information to a credit
reporting bureau regarding the amount of the claim or the person's failure
to pay the amount of the claim.  

(c) Provides that an insurer who violates this article commits an unfair or
deceptive act or practice as defined by Article 21.21 (Unfair Competition
and Unfair Practices), Insurance Code, and is subject to each penalty and
sanction imposed under that article.  

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

SECTION 3.  Emergency clause.