1-1                                   AN ACT
 1-2     relating to a change in notice requirements for escrow agents when
 1-3     increasing premiums.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Article 21.57(b), Insurance Code, is amended to
 1-6     read as follows:
 1-7           (b)  Any insurer receiving automatic premium payments through
 1-8     withdrawal of funds from a person's account, including the
 1-9     withdrawal of funds from a person's escrow account, as authorized
1-10     by such person for purposes of premium payments on any insurance
1-11     coverage provided through such insurer, shall not increase those
1-12     premium payments to be withdrawn from such an account for paying
1-13     premiums on such insurance coverage unless:
1-14                 (1)  the insurer, not later than the 30th day before
1-15     the effective date of the increase in premium, notifies the person
1-16     of the increase and provides such person a postage prepaid form
1-17     that may be used to object to such increase; and
1-18                 (2)  neither the insurer nor the financial institution
1-19     receives written objection to the increase in premium at least five
1-20     days before the date on which such increase takes effect.
1-21           SECTION 2.  Article 21.57(d), Insurance Code, is repealed.
1-22           SECTION 3.  This Act takes effect September 1, 1999.
1-23           SECTION 4.  The importance of this legislation and the
1-24     crowded condition of the calendars in both houses create an
 2-1     emergency and an imperative public necessity that the
 2-2     constitutional rule requiring bills to be read on three several
 2-3     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2284 was passed by the House on April
         27, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2284 was passed by the Senate on May
         20, 1999, by the following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor