SRC-TBR S.B. 278 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 278
77R190 MXM-FBy: Harris
Business & Commerce
1/29/2001
As Filed


DIGEST AND PURPOSE 

Currently, commercial auto insurance cannot be included as part of the
commercial package of coverage, since it is subject to a different
regulatory structure.  As proposed, S.B. 278 allows for commercial auto
insurance to be subject to a file and use system, rather than the benchmark
rate system. 

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 Article 5.13-2(1) and (2) to provide that this article
governs the regulation of commercial automobile insurance rates and forms.
Provides that it does not govern personal automobile insurance. Provides
that this article applies to all lines of commercial automobile insurance.
Makes a conforming change. 

SECTION 2.  Amends Article 5.01(f), Insurance Code, to provide that
notwithstanding Subsections (a) through (d) of this article, rates for
motor vehicle insurance in this state are determined as provided by Article
5.13-2 of this code or by the flexible rating program adopted under
Subchapter M of this chapter, as applicable.  Deletes language regarding
effective date of application. 

SECTION 3.  Amends Article 5.01-2(b), Insurance Code.  Makes conforming
changes. 

SECTION 4.  Amends Article 5.03(g), Insurance Code, to provide that
notwithstanding Subsections (a) through (e) of this article, rates for
motor vehicles are determined as provided by Article 5.13-2 of this code or
by the flexible rating program adopted under Subchapter M of this Chapter,
as applicable. 

SECTION 5.  Amends Article 5.04(c), Insurance Code.  Makes conforming
changes. 

SECTION 6.  Amends Article 5.06, Insurance Code, by adding Subsection (11),
to prohibit this article from applying to forms used by insurers for
commercial automobile insurers. 

SECTION 7.  Amends Article 5.09(c), Insurance Code.  Makes conforming
changes. 

SECTION 8.  Amends Article 5.11(c), Insurance Code.  Makes conforming
changes. 

SECTION 9.  Amends Article 5.12(a), Insurance Code.  Makes a conforming
change. 

SECTION 10.  Amends Article 5.14(b), Insurance Code.  Makes a conforming
change. 

SECTION 11.  Amends Article 5.15(h), Insurance Code.  Makes a conforming
change. 

 SECTION 12.  Amends Article 5.24(a), Insurance Code, to prohibit the rate
of assessment from exceeding one-fifth of one percent of the correctly
reported gross premiums of all insurers writing commercial automobile
insurance in this state.  Makes a conforming change. 

SECTION 13.  Amends Article 5.96(a-1), Insurance Code, to prohibit this
article from applying to commercial automobile insurance. 

SECTION 14.  Amends Article 5.101, Section 1, Insurance Code.  Makes a
conforming change. 

SECTION 15.  Repealer: Section 5.01(b)(Public Information), Insurance Code.

SECTION 16.  Effective date: September 1, 2001.
   Makes application of this Act prospective to January 1, 2002.