SRC-TBR H.B. 186 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 186
By: Burnam (Shapleigh)
Business & Commerce
4/29/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, fire marshals, fire chiefs, and police officers are
authorized to request insurance companies to release certain information
regarding a fire loss of $1,000 or more as a means to investigate possible
insurance fraud.  H.B. 186 expands the insurance fraud investigative powers
of police officers, fire chiefs, and fire marshals to include the
investigation of possible insurance fraud in cases of burglary, robbery,
and death claims.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 21E, Insurance Code, by adding Article 21.49C as
follows: 

Art. 21.49C.  REPORT OF CLAIMS INFORMATION ABOUT BURGLARY, ROBBERY, OR
DEATH.  (a)  Provides that subject to Subsection (b), the state fire
marshal, the fire marshal of a political subdivision in this state, the
chief of a fire department in this state, a chief of police of a
municipality in this state, or a sheriff in this state may, in the course
of a criminal investigation, request in writing that an insurance company
investigating a claimed burglary or robbery loss or a death claim seeking
life insurance proceeds release information in the company's possession
that relates to that claimed loss.  Requires the company to release the
information to any official authorized to request the information under
this article if the company has reason to believe that the insurance claim
is false or fraudulent. 

(b)  Prohibits an official who requests information under this article from
requesting anything other than certain items. 

(c)  Provides that this article does not authorize a public official or
agency to adopt or require any form of periodic report by an insurance
company.  

(d)  Provides that in the absence of fraud or malice, an insurance company
or a person who releases information on behalf of an insurance company is
not liable for damages in a civil action or subject to criminal prosecution
for an oral or written statement made, or any other action taken, that
relates to the information required to be released under this article.  

(e)  Requires the officials and department personnel receiving information
under this article to maintain the information in confidence until the
release of the information is required during a criminal or civil
proceeding.  

(f)  Prohibits an insurance company or the company's representative from
intentionally refusing to release to an official described by Subsection
(a) of this article the  information required to be released to that
official under this article. 

SECTION 2.  Effective date: September 1, 2001.  Makes application of this
Act prospective.