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


Senate Research Center   S.B. 324
76R3782 DLF-DBy: Ellis
Economic Development
3/11/1999
As Filed


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) accept 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 would delete the
requirement that an applicant go through an originating agent when applying
for MAP coverage, and allow applicants to contact TDI directly.   

PURPOSE

As proposed, 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
delete the requirement that applications would only be accepted from
licensed agents of the Texas Department of Insurance. 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
Texas Department of Insurance 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. Effective date: September 1, 1999.
  Makes application of this Act prospective to January 1, 2000.

SECTION 4. Emergency clause.