HBA-CBW H.B. 2830 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2830 By: Smithee Insurance 7/18/2001 Enrolled BACKGROUND 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 was 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. House Bill 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 It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 2830 amends the Insurance Code to provide that it is the policy and purpose of this state to 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. The bill provides that the act of conducting the business of insurance 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. EFFECTIVE DATE September 1, 2001.