HBA-JEK C.S.H.B. 3393 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3393
By: Oliveira
Insurance
4/23/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

A considerable portion of the Texas population speaks Spanish.  Many of the
Spanish-speaking immigrants in our state may not have had car insurance in
their home countries and may not be familiar with the terms used in car
insurance policies.  C.S.H.B. 3393 requires an informational sheet to be
made available to the public that explains the terms most commonly used in
personal automobile insurance policies in Spanish. 

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

C.S.H.B. 3393 amends the Insurance Code to require the commissioner of
insurance (commissioner) to develop or adopt and the Department of
Insurance to make available to the public no later than January 1, 2002, an
informational sheet in Spanish that provides a general explanation of the
terms most commonly used in a Texas personal automobile insurance policy.  

C.S.H.B. 3393 provides that an informational sheet is intended to provide
only a general explanation of insurance terms and that all other applicable
laws apply regardless of whether an informational sheet is used.  The bill
provides that an informational sheet must include a disclaimer that the
informational sheet is not intended to fully set out the rights and
obligations of the insured or the insurance company. 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3393 differs from the original bill by removing the provision that
authorized the commissioner of insurance (commissioner) to develop
informational sheets in a foreign language other than Spanish and the
provision that authorized the Texas Department of Insurance to produce
public service announcements concerning the availability of the
informational sheets.  The substitute removes the provision specifying that
a policy in English will prevail in the event of a dispute between an
insurer and an insured. 

C.S.H.B. 3393 provides that an informational sheet must include a
disclaimer that the informational sheet is not intended to fully set out
the rights and obligations of the insured or the insurance company.  The
substitute decreases the point size of the disclaimer that appears on the
informational sheet.  The substitute removes the provision that authorized
the commissioner to develop informational sheets in Spanish or another
foreign language regarding other lines of insurance.  The substitute does
not require the office of public insurance counsel to develop or adopt the
informational sheet in Spanish at the request of the commissioner.