SRC-PNG S.B. 324 76(R)BILL ANALYSIS


Senate Research CenterS.B. 324
By: Ellis
Economic Development
6/18/1999
Enrolled


DIGEST 

Currently, under Texas law, the Residential Market Assistance Program (MAP)
assists homeowners in Texas in obtaining residential property insurance
coverage in underserved areas.  However, consumers cannot apply directly
for coverage through the MAP due to the requirement that the Texas
Department of Insurance (TDI) accepts applications only from licensed
agents, called originating agents.  If a consumer contacts TDI directly,
TDI must then refer the applicant to an originating agent, which can delay
processing of applications to the MAP.  This bill deletes the requirement
that an applicant go through an originating agent when applying for MAP
coverage, and allows applicants to contact TDI directly.   

PURPOSE

As enrolled, C.S.S.B. 324 revises the application process for coverage
under the Market Assistance Program operated by the Texas Department of
Insurance. 

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 2(b), Article 21.49-12, Insurance Code, to
require the insurer to notify the applicant or the applicant's agent if a
premium quote is made so that the placement of the insurance may be
completed.  Deletes the requirement that applications would only be
accepted from licensed agents of the Texas Department of Insurance (TDI).
Makes conforming changes.   

SECTION 2. Amends Section 4, Article 21.49-12, Insurance Code, as follows:

Sec.  4.  New heading: DIRECT REFERRAL TO INSURER; AGENTS.  Authorizes the
TDI to assist an applicant in the market assistance program in completing
an initial application and refer the applicant to one or more participating
companies.  Authorizes an originating agent to complete an application on
behalf of an insured for submission to the program, but an applicant is not
required to submit the application through the originating agent.  Provides
that if an originating agent is used, the originating agent is not required
to be appointed to represent the ultimate insurer.  Makes conforming and
nonsubstantive changes. 

SECTION 3. Repealer: Section 5, Article 21.49-12, Insurance Code (Market
Assistance Programs). 

SECTION 4. Effective date: September 1, 1999.
  Makes application of this Act prospective to January 1, 2000.

SECTION 5. Emergency clause.