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


Office of House Bill AnalysisH.B. 3393
By: Oliveira
Insurance
4/8/2001
Introduced



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.  House Bill 3393 requires an informational sheet in
Spanish to be made available to the public that explains the terms most
commonly used in private passenger motor vehicle insurance policies. 

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 3393 amends the Insurance Code to require the commissioner of
insurance (commissioner) or the office of public insurance counsel to
develop or adopt and 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 private passenger motor vehicle
insurance policies.  The bill authorizes the commissioner to develop
informational sheets in a foreign language other than Spanish, and
authorizes the Texas Department of Insurance to produce public service
announcements concerning the availability of the informational sheets. 

H.B. 3393 provides that an informational sheet is intended to provide only
a general explanation of applicable insurance terms and that a policy in
English will prevail in the event of a dispute between an insurer and an
insured.  The bill provides that an informational sheet must include a
prominent disclaimer that the actual terms of an insurance policy prevail
over the information provided in the informational sheet. The bill also
provides that an advertisement for an insurance policy, translation, or
informational sheet by an insurer or a person who holds a license issued
under the Insurance Code may not be construed to modify or change the
insurance policy. 

The bill authorizes the commissioner to develop informational sheets in
Spanish or another foreign language regarding other lines of insurance. 

EFFECTIVE DATE

September 1, 2001.