SRC-DPW H.B. 2284 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2284
76R6256 DB-DBy: Averitt (Sibley)
Economic Development
5/10/1999
Engrossed


DIGEST 

Currently, an insurance company is required to give a 30-day advance notice
of a proposed increase in premiums if the insurer withdraws the premiums
from a traditional bank account.  An insurer is required to provide
consumers of traditional accounts with a prepaid postage form with which
the consumer may dispute the increase.  The consumer must provide the
insurer with any disputes within five days of the effective date of the
proposed premium increase.  Alternatively, premiums withdrawn from escrow
accounts are subject to a 60-day notification from the insurer, and escrow
account holders are required to dispute a premium increase within 30 days
of the effective date.  This bill would subject escrow accounts to the same
timetable as a traditional bank account regarding insurer notification and
consumer disputes for proposed premium increases. 

PURPOSE

As proposed, H.B. 2284 subjects escrow accounts to the same timetable as a
traditional bank account regarding insurer notification and consumer
disputes for proposed premium increases. 

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 Article 21.57(b), Insurance Code, to prohibit any insurer
receiving automatic premium payments through withdrawal of funds from a
person's escrow account from increasing those premium payments to be
withdrawn from such an account for paying premiums on such insurance
coverage, unless certain conditions exist. 

SECTION 2. Repealer: Article 21.57(d), Insurance Code (Withdrawals from
Premium Payments, Prohibited Practices). 

SECTION 3. Effective date: September 1, 1999.

SECTION 4. Emergency clause.