SRC-SLL, JBJ S.B. 139 76(R)BILL ANALYSIS


Senate Research CenterS.B. 139
By: Moncrief
Economic Development
8/16/1999
Enrolled


DIGEST 

Currently, state law provides an insurance premium discount to a homeowner
who uses certain fire alarms or sprinkler systems.  A less costly fire
suppression system, known as a stovetop fire suppression device, is not
eligible for existing premium discounts, although the device self-activates
and produces a fire-retardant powder when temperatures exceed a certain
level.  S.B. 139 requires insurance providers to reduce the insurance
premium of a homeowner who installs a stovetop fire suppression device and
requires the commissioner of insurance to establish the amount of the
reduction. 

PURPOSE

As enrolled, S.B. 139 requires insurance providers to reduce the insurance
premium of a homeowner who installs a stovetop fire suppression device and
requires the commissioner of insurance to establish the amount of the
reduction. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of insurance in SECTION
1 (Section 3(b), Article 5.33C, Chapter 5C, Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 5C, Insurance Code, by adding Article 5.33C, as
follows: 

Art. 5.33C. REDUCTION IN HOMEOWNERS INSURANCE AND FIRE INSURANCE PREMIUMS
FOR APPROVED FIRE SUPPRESSION DEVICES 

Sec. 1.  DEFINITIONS. Defines "stovetop fire suppression device" and
"homeowners insurance."  

Sec. 2.  ELIGIBILITY FOR PREMIUM REDUCTION. Entitles a policyholder to a
reduction in homeowners insurance premiums if the policyholder has
installed on the premises a stovetop fire suppression device that has been
approved by the State Fire Marshall through the commissioner. 

Sec. 3.  PREMIUM DISCOUNT. Authorizes certain insurers to grant a discount
in the premiums charged for a dwelling, apartment, or condominium that has
a correctly installed and functioning stovetop fire suppressive device.
Provides that the commissioner of insurance shall establish, by rule, the
amount of discount applicable under this article, and may adopt other rules
necessary to implement this article. 

SECTION 2.Effective date: September 1, 1999.
Makes application of this Act prospective to January 1, 2000. 

SECTION 3. Emergency clause.