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


Senate Research Center   S.B. 1707
By: Van de Putte
Business & Commerce
3/30/2001
As Filed


DIGEST AND PURPOSE 

Currently, discrimination by title insurance companies and their agents
impedes the ability for certain persons to obtain title insurance. As
proposed, S.B. 1707 prohibits title insurance companies from discriminating
against persons based on certain factors when those persons seek title
insurance coverage. 

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

Art. 9.07C. DISCRIMINATION AND TYING OF SERVICES PROHIBITED. Provides that
no title insurance company and no title insurance agent may discriminate in
providing insurance coverage based on certain criteria. Prohibits any
regulation or rule relating to this insurance coverage from discriminating
against certain persons. Prohibits any regulation or rule relating to this
insurance coverage from prohibiting a title insurance company from making
sound underwriting decisions in order to provide this insurance coverage.
Requires the title insurance company's underwriting to be based on
information or guidelines that the title insurance company deems reasonable
and prohibits the title insurance company from requiring an indemnity from
a seller, buyer, borrower or lender to provide this insurance coverage. 

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