SRC-MWN S.B. 1707 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1707
By: Van de Putte
Business & Commerce
5/22/2001
Enrolled


DIGEST AND PURPOSE 

S.B. 1707 amends the Insurance Code relating to title insurance area and
boundary coverage. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the commissioner of insurance
in SECTION 1 (Article 9.07C, Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 9, Insurance Code, by adding Article 9.07C, as
follows: 

Art. 9.07C. AREA AND BOUNDARY COVERAGE. (a) Defines "area and boundary
coverage." 

(b) Authorizes the commissioner of insurance (commissioner) to adopt rules
allowing a title insurance company to accept an existing real property
survey and not require a new survey when providing area and boundary
coverage if the title insurance company is willing to accept evidence of an
existing real property survey, and an affidavit verifying the existing
survey, as prescribed by the commissioner, notwithstanding the age of the
survey or the identity of the person for whom the survey was prepared. 

(c) Prohibits a title insurance company from discriminating in providing
area and boundary coverage in connection with residential real property
solely because of certain factors. 

(d) Prohibits a title insurance company from requiring an indemnity from
certain persons to provide area and boundary coverage. 

SECTION 2. Effective date: upon passage or September 1, 2001.