By Eiland                                             H.B. No. 2791
         76R8881 T                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to cancellation of agency contracts by fire and casualty
 1-3     insurance companies.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 3, Article 21.11-1, Insurance Code, is
 1-6     amended to read as follows:
 1-7           Sec. 3.  The provisions of this article shall not apply to
 1-8     the termination or suspension of an agent's contract for
 1-9     insolvency, abandonment, gross and willful misconduct, or failure
1-10     to pay over to the company money due to the company after receipt
1-11     of a written demand therefor, or after revocation of the agent's
1-12     license by the State Board of Insurance; nor to the termination or
1-13     suspension of agents where (a) the policies and the insurance
1-14     business is owned by the company and not by the agent[.] , or (b)
1-15     the contract between the company and the agent requires the agent
1-16     to submit to the company every request or application for insurance
1-17     for the classes of business written by the company.
1-18           SECTION 2.  This Act take effect September 1, 1999.
1-19           SECTION 3.  The importance of this legislation and the
1-20     crowded condition of the calendars in both houses create an
1-21     emergency and an imperative public necessity that the
1-22     constitutional rule requiring bills to be read on three several
1-23     days in each house be suspended, and this rule is hereby suspended.