SRC-TBR S.B. 1793 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1793
77R9967 PB-FBy: Sibley
Business & Commerce
4/16/2001
As Filed


DIGEST AND PURPOSE 

Currently, there are three Guaranty Associations authorized by statute in
the Insurance Code.  As proposed, S.B. 1793 includes the Commissioner of
Insurance as a member of each guaranty association board to provide greater
oversight and supervision of the on going business of each board and to
provide that each guaranty association may consider, in a closed session
meeting,  confidential information about the financial status and solvency
of member insurance companies that are or may be placed in liquidation by
the commissioner of insurance. 

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 Section 14(b)(1), Article 9.48, Insurance Code, as
follows: 

(1)  Requires the Commissioner of Insurance (commissioner), or the
commissioner's designee, to serve as a nonvoting ex officio member of the
board of directors.  Provides that an ex officio member is not subject to
the requirements imposed on appointed members under this article. Requires
that board members, other than the public representatives, be chosen to
give fair representation to all insurers and agents giving due
consideration to the various categories of premium income, geographical
location, and segments of the industry represented in this state. Redefines
"public representative," and "immediate family." 

SECTION 2.  Amends Section 7(a), Article 21.28-C, Insurance Code, to make a
conforming change. 

SECTION 3.  Amends Section 7(a), Article 21.28-D, Insurance Code, to make a
conforming change. 

SECTION 4.  Amends Section 551.079, Government Code, as follows:

Sec. 551.079.  New heading: TEXAS DEPARTMENT OF INSURANCE. (a)  Provides
that the requirements of this chapter do not apply to a meeting of the
commissioner of insurance or the commissioner's designee with the board of
directors of a guaranty association established under Article 9.48,
21.28-C, or 21.28-D, Insurance Code, in the discharge of the commissioner's
duties and responsibilities to regulate and maintain the solvency of a
person regulated by the Texas Department of Insurance, rather than the
board. 

(b)  Authorizes the commissioner of insurance rather than board, to
deliberate and determine the appropriate action to be taken concerning the
solvency of a person regulated by the Texas Department of Insurance in a
closed meeting with persons in one or more of certain categories. 

SECTION 5.  Effective date: September 1, 2001.