SRC-PNG S.B. 1531 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1531
By: Carona
Economic Development
4/5/1999
As Filed


DIGEST 

Currently, under Texas law, an unfair settlement practice occurs when an
insured person's claim is treated inappropriately by an insurance company.
Inappropriate actions may include failure to pay within a reasonable time
period or failure to explain why a claim was denied.  This bill adds
healthcare providers to current law which permits beneficiaries and
insureds to seek action for an unfair settlement practice with the aid of a
state agency. 

PURPOSE

As proposed, S.B. 1531 allows health care providers, including physicians,
to seek an appropriate remedy to the unfair settlement practice with the
aid of a state agency. 

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 10, Article 21.21, Insurance Code, to include
beneficiaries, health care providers, or a person or entity with which one
has contracted to provide services to an insured or beneficiary to seek an
appropriate remedy in a claim under the unfair settlement practice
regulations. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.