SRC-PNG C.S.S.B. 1531 76(R)BILL ANALYSIS Senate Research CenterC.S.S.B. 1531 76R10228 AJA-DBy: Carona Economic Development 4/8/1999 Committee Report (Substituted) 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, C.S.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 4, Article 21.21, Insurance Code, by amending Subdivision (10), to include health care providers or a person or entity with which one has contracted to provide services to an insured or beneficiary among those in a claim under the unfair settlement practice regulations. Makes conforming changes. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE CHANGES SECTION 1. Amends Section 4, Article 21.21, Insurance Code, by amending Subdivision (10), to include health care providers or a person or entity with which one has contracted to provide services to an insured or beneficiary among those in a claim under the unfair settlement practice regulations. Deletes proposed SECTION 1.