SRC-MWN S.B. 994 77(R)BILL ANALYSIS


Senate Research CenterS.B. 994
By: Sibley
Business & Commerce
5/21/2001
Enrolled


DIGEST AND PURPOSE 

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. S.B. 994 amends Articles 5.06-4, 5.15-2, and
5.15-3, Insurance Code, and Section 411.061, Labor Code, to require an
insurance company to provide loss control information before actually
writing certain lines of insurance in Texas, rather than before obtaining a
license to write such insurance lines. 

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 5.06-4(a), Insurance Code, to require any insurer
desiring to write commercial automobile liability insurance in this state
to provide loss control information as a prerequisite for writing, rather
than a license to write, that insurance. 

SECTION 2. Amends, Article 5.15-2(a), Insurance Code, to make a conforming
change. 

SECTION 3. Amends Article 5.15-3(a), Insurance Code, to make a conforming
change. 

SECTION 4. Amends Section 411.061(a), Labor Code, to make a conforming
change. 

SECTION 5. Effective date: September 1, 2001.