SRC-AXB S.B. 105 76(R)BILL ANALYSIS


Senate Research CenterS.B. 105
By: Harris
Economic Development
6/22/1999
Enrolled


DIGEST 

Currently, the Insurance Code requires a certain procedure for the
submission of an annual audit for licensed title insurance agents.  This
bill alters those procedures by changing the office to which the annual
audit report is submitted, deleting the requirement that title insurance
companies perform analysis of audit reports for the Texas Department of
Insurance, clarifying audit report submission failure deadlines, and
providing that the audit be performed at the agent's or direct operation's
expense. 

PURPOSE

As enrolled, S.B. 105 changes the office to which title insurance companies
are required to submit annual audits from the State Board of Insurance to
the Texas Department of Insurance, deletes the requirement that title
insurance companies perform analysis of audit reports for the Texas
Department of Insurance, clarifies audit report submission failure
notification deadlines, and provides that the audit be performed at the
agent's or direct operation's expense. 

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 9.39, Insurance Code, to require an annual audit
to occur before the 91st day after the termination of every title insurance
agent's and direct operation's fiscal year at its expense. Requires the
annual audit to be sent to the Texas Department of Insurance, rather than
the State Board of Insurance (SBI).  Requires the Commissioner of Insurance
of the State of Texas (commissioner), rather than the SBI, to set forth the
standards and form of the required audit report.  Requires title insurance
companies to report to the Texas Department of Insurance, the failure of
their agents or direct operations to deliver an audit report on or before
the 30th day after the expiration of the 90-day period. Requires those
feeling wronged by actions of the commissioner, rather than the SBI, to
have the right to appeal under Article 1.04, rather than file a suit under
Article 9.37 of the Insurance Code.  Deletes text requiring certain actions
of title insurance companies relating to the audit reports created by
agents and direct operations.  Makes conforming and nonsubstantive changes. 

SECTION 2.Effective date:  September 1, 1999.

SECTION 3.Emergency clause.