SRC-SEW H.B. 2830 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2830
77R13018 AJA-FBy: Smithee (Sibley)
Business & Commerce
5/9/2001
Engrossed


DIGEST AND PURPOSE 

The Texas Department of Insurance (department) has been unsuccessful in
obtaining convictions against individuals involved in the sale of
unauthorized insurance from locations in Texas to persons who are residents
of other states. There is a need to clarify the statutes with regard to
this unauthorized insurance activity to eliminate any possible safe harbors
for individuals who are engaged in such activities. H.B. 2830 provides that
the unlicensed or unauthorized practice of the business of insurance that
affects persons in another state or jurisdiction is considered the business
of insurance in this state.  

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 Section 101.001, Insurance Code, by adding Subsection
(d) to provide that it is also a concern that this state not become a safe
harbor for persons or insurers engaged in the unauthorized business of
insurance in this state, regardless of whether the insureds or other
persons affected by the unauthorized business of insurance are residents of
this state. 
 
SECTION 2.  Amends Section 101.051, Insurance Code, by adding Subsection
(c) to provide that an act described by Subsection (b) by an unlicensed or
unauthorized person or insurer that occurs in this state and that affects a
person in another state or jurisdiction constitutes the business of
insurance in this state. 
 
SECTION 3.  Makes application of the change in law made by Section
101.051(c), Insurance Code, as added by this Act, prospective regarding
conduct engaged in on or after the effective date of this Act. 
 
SECTION 4.  Effective date:  September 1, 2001.