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.