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


Senate Research Center   S.B. 994
By: Sibley
Business & Commerce
3/12/2001
As Filed


DIGEST 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. As
proposed, 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 Subsection (a), Article 5.06-4, 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 Subsection (a), Article 5.15-2, Insurance Code, to make a
conforming change. 

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

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

SECTION 5. Effective date: September 1, 2001.