HBA-DMH S.B. 994 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 994 By: Sibley Insurance 4/22/2001 Engrossed BACKGROUND AND PURPOSE Currently, when an insurance company files an application for a license to do business in Texas, the insurance company often seeks authorization to write the same lines of insurance it is authorized to write in other states. Under Texas law, a company which seeks to obtain a license and requests authorization to write workers' compensation, commercial automobile, professional liability for hospitals or other providers, general liability, or medical professional liability insurance for providers other than hospitals is required to provide accident prevention or loss control information before the license may be approved. Senate Bill 994 requires an insurance company to provide loss control information before actually writing certain lines of insurance, rather than before obtaining a license to write such insurance lines. 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 Senate Bill 994 amends the Insurance Code to provide that any insurer desiring to write commercial automobile liability insurance, professional liability insurance, and workers' compensation insurance must provide loss control information or services or accident prevention facilities as a prerequisite for writing, rather than a license to write, that insurance. EFFECTIVE DATE September 1, 2001.