SRC-TBR H.B. 845 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 845
By: Nixon, Joe (Shapiro)
Business & Commerce
5/2/2001
Engrossed


DIGEST AND PURPOSE 

Prior to and during the Holocaust, insurance companies sold policies to
individuals who subsequently became victims of the Holocaust.  H.B. 845
allows an action to be brought against an insurer to recover on a claim
arising our of an insurance policy issued to a Holocaust victim and
provides penalties for insurers that deny a claim because of the age of the
claim. 

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 21.74 as
follows: 

Art. 21.74.  ENFORCEMENT OF INSURANCE POLICIES AFFECTING CERTAIN HOLOCAUST
VICTIMS 

 Sec. 1.  DEFINITIONS.  Defines "holocaust victim," "insurer," and
"insurance policy."  

Sec. 2.  SUSPENSION OF LIMITATIONS PERIOD. (a)  Authorizes a Holocaust
victim, or the heir, assignee, beneficiary, or successor of a Holocaust
victim, who resides in this state and has a claim arising out of an
insurance policy purchased or in effect in Europe before 1946 that was
delivered, issued for delivery, or renewed by an insurer to bring an action
against an insurer to recover on that claim in a court of competent
jurisdiction in this state, notwithstanding any other law. 

(b)  Prohibits an action brought under Subsection (a) of this section from
being dismissed for failure to comply with any applicable limitations
period if the action is brought before December 31, 2012. 

Sec. 3.  ENFORCEMENT. (a)  Provides that a failure by an insurer to comply
with a claim brought under this article by denying the claim on the grounds
that the claim is not timely or by asserting a statute of limitations
defense in an action brought under Section 2(a) of this article constitutes
a violation of this article. 

(b)  Authorizes the Commissioner of Insurance (commissioner), if the
commissioner considers it to be necessary, to initiate an examination under
Article 1.15 of this code. 

(c)  Authorizes the commissioner, if the commissioner believes that a
violation of this article by an insurer has occurred or is occurring, to
impose sanctions under Chapter 82 of this code, issue a cease and desist
order under Chapter 83 of this code, assess an administrative penalty under
Chapter 84 of this code or refer the matter to the attorney general for
appropriate enforcement. 
 
SECTION 2.  Effective date: upon passage or September 1, 2001.