SRC-MWN H.B. 2415 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2415
77R12041 AJA-DBy: Giddings (Ellis, Rodney)
Business & Commerce
5/9/2001
Engrossed


DIGEST AND PURPOSE 

Currently, many observers believe that the premiums charged by life
insurance companies in connection with small face amount policies are
unreasonable in relation to the benefits received. In some cases the
insurance companies do not disclose to consumers the relationship between
the pricing of life insurance policies with a small face amount and the
benefits received under that policy. H.B. 2415 requires the commissioner of
insurance to conduct a marketplace study in the state for life insurance
policies issued with a small face amount, evaluate whether the actuarial
and expense experience supports the pricing of the small face value life
insurance policies, and evaluate whether statutory changes are needed.  

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS
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SECTION 1. Requires the commissioner of insurance (commissioner) to conduct
a study of the marketplace in the state for life insurance issued with a
small face amount and report the commissioner's findings to the legislature
on or before January 1, 2003. 

(b) Requires the commissioner, in conducting the study, to evaluate and
consider certain information. 

(c) Requires the commissioner to appoint an advisory committee to assist in
conducting the study required by this section and to obtain comments from
interested parties. Requires the committee to include members who represent
certain entities. 

(d) Provides that the advisory committee appointed under Subsection (c) of
this section is abolished and this section expires September 1, 2001. 

SECTION 2. Effective date: September 1, 2001.