HBA-TBM H.B. 3080 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3080 By: Burnam Insurance 4/9/2001 Introduced BACKGROUND AND PURPOSE Currently, virtually all licensed carriers of homeowners and residential property insurance, whether rate regulated or not, must use the same standard policy forms promulgated by the commissioner of insurance (commissioner). This allows a consumer to shop for insurance strictly on the basis of price and service. However, under current law, the commissioner is authorized to adopt policy forms filed by national organization of insurers and certain national writers of property insurance. While no policy forms have been adopted, it is possible that policies may be adopted that are significantly different from the promulgated standard forms and from each other. If policy forms filed by insurers are adopted, consumers will have to understand exactly what they are paying for. This will harm the individual consumer, because most consumers are not in a position to know what a particular difference in coverage may be worth until a claim is filed. Additionally, there is no assurance that appropriate savings will be passed along by the insurers to the policyholders. House Bill 3080 requires rates and supplementary rating information for homeowners, residential fire, and allied lines insurance policy forms filed by insurers to be governed by provisions regarding general liability and commercial property insurance coverage. 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 3080 amends the Insurance Code to require rates and supplementary rating information for homeowners and residential fire and allied lines insurance policy forms and endorsements delivered, issued for delivery, or renewed on or after January 1, 2002 by insurers to be subject to rates for general liability and commercial property insurance coverage. EFFECTIVE DATE September 1, 2001.