SRC-JJJ H.B. 2559 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2559
76R7107 DB-FBy: Turner, Bob (Ratliff)
Economic Development
5/9/1999
Engrossed


DIGEST 

Currently, the Insurance Code authorizes stipulated premium companies to
assume liability on a life insurance risk on any one life under certain
conditions.  Group II life insurance agents, who are not required to take
an examination or meet continuing education requirements, may be licensed
to sell life insurance policies with a value of $10,000 or less.  In
general, these types of policies are not heavily marketed because they are
usually only used to pay for funeral expenses and outstanding bills.  H.B.
2559 would establish conditions regarding increasing the policy limit on
stipulated insurance company policies. 
 
PURPOSE

As proposed, H.B. 2559 establishes conditions regarding increasing the
policy limit on stipulated insurance company policies. 

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 Section 3, Article 21.07, Insurance Code, to require the
commissioner of insurance, rather than the Texas Department of Insurance
(department), to issue a license to a person, corporation, or bank in such
form as the department may prepare authorizing such applicant to write the
types of insurance authorized by law to be issued by applicant's appointing
insurance carrier, except that the applicant shall not be authorized to
write health and accident insurance unless the applicant fulfills certain
conditions and the applicant, if not a partnership, corporation, or bank
shall not be authorized to write life insurance in excess of $15,000,
rather than $10,000 upon any one life under certain conditions.  Makes
conforming changes.   

SECTION 2.  Amends the heading to Section 4A, Article 21.07, Insurance
Code, as follows: 

Sec. 4A.  New heading:  EXAMINATION OF APPLICANT FOR LICENSE TO WRITE LIFE
INSURANCE UPON ANY ONE LIFE IN EXCESS OF $15,000. 

SECTION 3.  Amends Sections 4A(a), (c), and (e), Article 21.07, Insurance
Code, to make conforming changes. 

SECTION 4.  Amends Section 3, Article 22.07, Insurance Code, to make
conforming changes. 

SECTION 5.  Amends Section 1(b), Article 22.13, Insurance Code, to make
conforming changes. 

SECTION 6.  Amends Article 22.23(a), Insurance Code, to make a conforming
change. 

SECTION 7.  Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 8.  Emergency clause.